New Study Proves That Money Does Buy Happiness

I’m sure you’ve heard all those old sayings before, “money can’t buy you happiness” and the “best things in life are free”, but a new study released this month by Purdue University has found that not to be true. A team of psychologist from Purdue University in Indiana have produced new evidence proving that money and happiness are intrinsically linked.

The study looked at data from 1.7 million people

These psychologists spent years looking at people’s happiness levels and their relationship to money. The research team, led by Louis Tay, an assistant professor of psychological sciences, and doctoral student Andrew T. Jebb, used data from the Gallup World Poll, which is a representative survey sample of more than 1.7 million individuals from 164 countries.

The conclusion the researchers came to, was that happiness is strongly linked to one's day-to-day emotional fluctuations (feelings of excitement, joy, sadness and anger) and also to an individual’s evaluation of his or her life. As people we constantly ask ourselves how we are doing and have we met our goals. We also compare ourselves to others. Ultimately the researchers found that your assessment of self and your daily emotional fluctuations are connected to your income. The researchers found that for positive life evaluation the ideal income point for an individual globally is $US95,000 (A$123,120). To maintain daily stable emotional well-being you need between $US60,000 ($77,760) to $US75,000 ($97,200).

In Australia you need $125K a year

For Australia specifically the researchers attest that if you are earning $125,000 a year you are likely to be satisfied with your life and your achievements. The average wage in this country is only around $82,000 so basically you need to be earning 50 percent more than the average person to feel like you have met your goals. To be shielded from emotional mood fluctuations you need an income in Australia of at least $50,000. Remember that figure is for individuals not families. If you have a family to support you need to be earning substantially more. I have no trouble believing that as a single person you need to be earning at least $50,000 to maintain emotional equilibrium. You need at least this much to be able to pay your bills and be shielded from financial stress!

You need more money to be happy in first world countries

The authors of the study wrote in the Nature Human Behaviour that “there was substantial variation across world regions, with satiation occurring later (at a higher income) in wealthier regions for life satisfaction.” Professor Jebb explained, “This could be because evaluations tend to be more influenced by the standards by which individuals compare themselves to other people”.

When I read the results of this study I had one thing and one thing only to say – I told you so! In line with my prosperity mindset I have always said that it’s essential that you make money. Being financially secure alleviates stress, and if you allow yourself to become wealthy you are also acknowledging that you are worth it – that you are an important and significant person in this world! Having money also means you have the power to help others. The leader author of this study, Andrew Jebb, stated that if you want to be happier, you should focus less on yourself. “People tend to be better off when they spend their money… in service of other people,” he said. Seriously, if you don’t have any money you can’t spend it on other people can you? You are not in a position to help!

Are you resistant to making good money?

I believe that many people have a resistance to becoming wealthy because on a subconscious level they think that money is dirty or evil. They have been told, “money corrupts” and “money is the root of all evil”. They even misuse scripture passages to justify their aversion to money, Matthew 19: 16-26 “Truly I say to you, it is hard for a rich man to enter the kingdom of heaven. Again I say to you, it is easier for a camel to go through the eye of a needle, than for a rich man to enter the kingdom of God.” But the truth is that many people in the Bible were very rich, including King Solomon Abraham and King David who wrote the Psalms. Actually there are at least 1700 Bible references that encourage people to prosper, including “The Lord will command the blessing upon you in your barns and in all that you put your hand to,” (Deuteronomy 28:8) and “Beloved, I pray that in all respects you may prosper and be in good health, just as your soul prospers” (John 1:2).

To prosper you must reprogram your brain

If you want to prosper you need to keep growing emotionally, mentally, spiritually and financially. But to prosper financially you must reprogram your brain about how you feel about money. Money is not dirty. Money is not evil. Money is simply a tool – like a hammer. You can use a hammer to strike and hurt someone or you can use a hammer to build a beautiful house that will be a home for those you love. The choice is yours – use the tool as you wish.

However the latest research shows us very clearly that happiness and money are linked. You don’t have to be a genius to work out that being poor is not fun – it’s an unhappy experience. I know – I grew up in a struggling household. It is also worth noting that the last study on happiness and money, released in 2010, pegged the perfect salary for happiness at $106,000. This study was carried out by an American psychologist and economist. Given cost-of-living increases over the past eight years it’s surprising that the new ideal happiness salary is only $125,000 in Australia!

As the Vulcans on Star Trek advise – live long and prosper!