How Money Can Buy Happiness

I was very interested to read about the results of a new study that found money can buy you happiness – if you spend your money creating more free time! If you have followed my work over the years, you’ll know that I’m determined to change people’s attitudes towards money. Too many people have failed to become prosperous because they have a bad attitude towards money. Often this stems from their background and sometimes even their religion. They’ve been told that it’s virtuous to be poor and money is a curse or the root of all evil. Other people have been successful making money, but then feel guilty about having too much of it!

I have explained time and time again, that money is not the root of all evil. According to the scriptures, a love of money is the root of all evil! Many people mentioned in the Old Testament were very wealthy, including King David who wrote the Psalms. If you have money you can do wonderful things – you can give to worthy causes, begin your own company, employ staff, train people and educate your children. Some people justify their impoverished state by claiming they have the things money cannot buy – love, their health and family. Well, why can’t you have the things money can buy AND the things money can’t buy (love, family). It is not an either or scenario!

The study I refer to was conducted by the Harvard Business School and the University of British Columbia. It found that people who are in a position to pay someone to do their time-consuming dull work reported a great feeling of life satisfaction. These people had more time to be with family and friends and do tasks they found personally fulfilling. The study also found that people who spent their money on material objects did not feel any happier than people who couldn’t afford to buy lavish possessions. Previous research had found that using money to help others or buy happy experiences – like family holidays – made people happier than buying possessions.

People in the United States, Canada, Denmark and the Netherlands were surveyed in the most recent study. (Canada, Denmark and the Netherlands rank close to the top of world happiness studies.) Overall, buying time increases happiness by about 0.8 on a 10-point scale – that is almost a whole point, and statistically significant, according to the psychologists who ran the study. The psychologists say that stress over a lack of time diminishes one’s sense of well-being and raises anxiety. People in first world countries around the world are suffering from ‘time famine’ – they get stressed over the demands in their life. Dr Elizabeth Dunn, a psychology professor involved in the study, said people who spend money buying more free time are definitely happier – they clearly have higher life satisfaction. So the next time someone tells you that money cannot buy happiness you can cite this study by two renowned universities that found the exact opposite!

For the study, more than 6,000 people in the US, Canada, Denmark and the Netherlands, including 800 millionaires, were asked about how much money they spent on buying time. The researchers found that fewer than a third invested money buying themselves more time. Even the very wealthy were reluctant to pay people to do the jobs they disliked, but those who did reported greater life satisfaction and happiness level! Previous research found that people who prioritise time over money tend to be happier than people who prioritise money over time.

There is another lesson for us to learn here – invest in time with those you love, and be prepared to spend more money so you have more time to do what makes you fulfilled. It will make your life happier! The psychologists say the study may help those who feel obliged to do a ‘second shift’ of housework when they come home – they should instead be employing a cleaner.

This study clearly proves that money is not the root of all evil, but capable of creating happiness if used properly. Money is a conductor, like electricity. If used properly it will warm your house and cook your food. If mishandled it can burn down your house and electrocute you. My money takes on my values, my philosophies, my ethics and my characteristics. It does what I want it to do. It has no mystical power. It is not corrupting! Use your money wisely, put it to work. Ensure that your money benefits you and others. Margaret Thatcher once wisely said that no one would remember the story of the good Samaritan if all he had was intentions – he also had money to pay the inn keeper to care for the injured man.

There have been multiple studies which have found that a lack of money and resources creates problems. Poorer neighbourhoods experience higher rates of crime and drug use. Poorer areas have high rates of mental illness, and young people in these regions are less likely to finish high school. People who live in poverty suffer poorer health that people with resources. Relationships are more likely to break down in poorer areas. Poverty can also lead to the outbreak of war in third world countries. Money can do so much good in this world! But remember, there is no point in squirreling your money away and saving for a rainy day. If you save for a rainy day, that is exactly what you are going to get.

Go out every day and make money. Focus on your goals, take care of what you have, build your asset base, borrow strategically, spend your money wisely and be generous. Share with other people and they will share with you. Most importantly, develop a mindset to succeed and prosper.