Happiness is an emotion everybody wants to feel. The problem is that nobody seems to agree on what causes joy in life. Reasons vary according to individuals, but can include family moments, selfless acts, and personal or professional successes. What about money though? Does it contribute to making us happy? We’ve all heard the saying ‘money can’t buy you happiness’, but how true is it today? Well, not at all, according to a recent survey of 2000 Brits, commissioned by Wealthify that found a close relationship between money and happiness.
The survey, via OnePoll.com, offers clear insights into the importance of finances on our well-being. The study found that ‘rich’ people (those with a disposable income of at least £1,251) rate their happiness at 8 out of 10, compared to only 6 out of 10 for those with only around £100 per month to spend on themselves. The majority (78%) of participants agreed they’d be happier if they had more money, with £508 extra per month being the magic figure required to achieve a state of contentment. If they had more money, people listed holidays abroad, treating themselves and loved ones, buying new gadgets, and decorating their homes as top priorities, while paying off debts and saving for the future featured less prominently
Interestingly, the survey reveals that the ‘happy feeling’ tends to be provoked when money is used to purchase desired goods or activities. Two thirds of those surveyed explain they feel more cheerful after spending, with seven in ten admitting to a sense of joy simply from looking forward to using their new purchase.
The euphoria linked to these purchases sadly doesn’t last forever, it seems. Most people confess that their glee vanishes after a few days, or months for the luckiest ones, once the dopamine – the hormone which makes people feel joyful – stop exercising its magical power, leaving people with a feeling of emptiness that can only be filled with more spending. Yet, spending itself can also be the source of unhappiness, as 68% of those taking part in the survey admitted that worrying about finances, over anything else, is what prevents them from being happy, and just 30% of people felt confident that they would one day reach a point where they had enough money.
But don’t panic, it’s possible for everyone to achieve long-term financial happiness, as long as they manage their money wisely. Big life events, such as getting married, preparing your children’s future, or paying off your credit card debt, are good ways to set a goal and focus your saving efforts. With 58% of people admitting they could be better with their finances, it seems that most of us would benefit from a helping hand when it comes to our money.
If you’re willing to accept a little risk with your money in return for higher potential returns over the long term, then perhaps a digital wealth manager, like Wealthify, could be that helping hand. Investing is simple and doesn’t require any previous investment experience. With Wealthify, you can start with as little as £1 and top up regularly for as long as you wish. Opting for a low-cost ‘robo investing’ service might ease any apprehension you’ve got about the investment world, and could provide you with some peace of mind, as our investment managers will create and manage your individual investment plan daily. Even better, you remain in full control as you can check how your plan is doing 24/7 on any device. And whilst investing should be seen as a long-term strategy, you can access your funds whenever you want and use it to finance your everlasting happiness.
Please remember, investments can go down in value and you could receive back less than invested.