Wealth and Happiness: Does Money Make You Happy?

Well, money increases happiness to a certain extent. The equation of money and happiness reaches a ‘point of inflection’ where you have made more than enough money to be happy. According to research, money can only make you happy up to the point where you have more than enough, and more does not necessarily translate to increased happiness.

In the United States, this point of inflection is appreciated as having an income of $70,000 a year. Beyond an annual income of $70,000, more money does not necessarily mean more happiness. The reason for this is that when you have enough money and you can go anywhere you want or do anything you would like, then it loses taste in the sense that it is not as exciting or happiness-inducing anymore.

Home Ownership

You will be surprised to learn that even building or buying a house may not give you as much happiness long term as one would probably think. Studies indicate that homeowners draw as much happiness from owning a home similar to the happiness renters draw from renting an apartment or a place to live.

Being a homeowner does not necessarily translate to being happier.

As such, being a homeowner does not necessarily translate to being happier. New homeowners draw a lot of excitement and happiness from their homes for the first few years. After the point of inflection, which in this case, is deriving the sense of stability and being grounded that we all naturally crave, they do not draw much happiness from owning a home henceforth.