6 Reasons Why Money Can't Buy Happiness
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The late Henry David Thoreau once stated, “Wealth is the ability to fully experience life,” and hinted at the value of money beyond its financial merits. However, people nowadays seem to strongly believe that having cash is the same as being happy. To be fair, money is a useful tool that helps us fulfill our basic needs. In fact, a study in 2010 found that people’s happiness increased as annual income rose. However, it plateaued at a certain point - specifically, $75,000. It seems that money can't buy happiness to a degree, although it can help us find it. But why is that the case? To explore this further, here are six reasons why money can't buy happiness.
1. Life isn’t about the stuff you have.
What does this mean?
Let’s start by examining what life is and what it isn’t. Many people seem to equate life and value to the stuff they own. For instance, some would rather have the latest phone or gadget seems more important than anything else. However, the reason that money can’t buy happiness is that worldly things don’t last forever. Sure, a good purchase will improve your life but it won’t always be that useful in the long run. Studies show that the average American will spend $2.7 billion a year is spent replacing lost items. That’s a lot of money wasted on things you might not have cared about!
For example, many people love to buy Air Jordans. Some will even preserve them in the shoe box forever. They’d rather keep these nice shoes than use them. Now, imagine if you could choose between expensive Air Jordans or a decent pair of running shoes. Which one will serve you in the next few years? If you think carefully about it, the true value of a shoe is in how it is used. That’s why money can’t buy happiness. It can help you get nicer things, but that shouldn’t be your focus in life.
How do I apply this to my life?
To start applying this concept in your life, re-examine the things you have at home. Are there gadgets or clothes that don’t serve you at all? If so, they’re only clutter that eats up space and/or money at your home. Clear out your mess by keeping the things that seem the most practical and worthwhile. If you’re going to buy something, focus on what you’ll use in the next month, instead of hiding it away for a year. The more you focus on the purpose of a product, the easier it becomes to buy things that matter. Remember, money can’t buy happiness but it can buy methods to maximize your life.
2. Happiness comes in several forms.
What does this mean?
Have you ever wished that you had more money in life? Everyone has dreamed of being a millionaire or making thousands of dollars at a time. But is that the only way you can be happy? One reason that money can’t buy happiness is its purpose. There are people who care more about how much they make, but don’t really need that cash.
Meanwhile, you might focus on how you can use that money to improve your life. Perhaps you’ll use it to study more, make a new business, or provide for your loved ones. In that sense, it’s not the money that makes you happy, but the way you use it. Remember, being financially successful isn’t the only way you can enjoy your life.
How do I apply this to my life?
If you want to experience true happiness, ask yourself what you need and what you want to achieve. For instance, you might dream of writing a successful book or building a happy family with your spouse. Things like that may not be cheap, but it’s not the money that you’re chasing. Remember that your reason for happiness can stem from the simplest reasons. Maybe you want to make more money because you want to fund your bestseller aspirations or your future children’s lives.
3. It’s crucial to focus on value, not price.
What does this mean?
As mentioned before, what you own isn’t the same as what makes you happy. A nice car would make anyone smile, but it’s not the reason they stay happy. Whatever you want to buy or invest in, think carefully about what its value is in your life. For example, is the car worthwhile because it has a shiny paint job? Or is it worthwhile because you can now travel anywhere around the city? The more you re-examine your life this way, the easier it will be to see why money can’t buy happiness.
How do I apply this to my life?
The old adage “Never judge a book by its cover,” can help you see things in a new light. An old leatherbound might not have the fancy cover of a modern paperback, but its content can be more exciting than most of the stories today. Why else would classics like Pride and Prejudice or Fahrenheit 451 still be sold today? When you want to buy or pay for something, don’t just look for the priciest deal. Spending too much for something you could buy at a cheaper, more meaningful price will make you realize that money can’t buy happiness. To avoid financial heartache, always check what fits your needs and if those things are worth their price.
4. Everything comes at a cost.
What does this mean?
While money can’t buy happiness, it does serve a purpose in our lives. If you think about all the things you have or use, they come at a cost. From the electricity in your house to the food in your refrigerator, everything has a price. However, that doesn’t mean you have to treat everything as an expense. Remember that there are other costs to consider when evaluating your life. For example, fast food can be a tasty treat but it also leads to serious health problems over time. Is it worth putting your health at risk when you can afford a greasy meal? being able to afford something doesn’t mean you should buy it.
How do I apply this to my life?
While everything has a price, that doesn’t mean that you should focus on purely financial growth. Remember that by itself, money can’t buy happiness. What you can do is look at your daily habits and see what changes can fulfill the other parts of your life. There are ways to save money and make your reality more wholesome. For example, walking to work instead of renting or owning a car can do a lot for you. Walking to and from the office saves money, burns active, and allows more time for self-reflection.
5. Being gratified isn’t the same as being fulfilled.
What does this mean?
If money can’t buy happiness, why do so many people want more cash? The truth is that it could be to gratify their lives. Gratification is like a snack; it gives you short-term satisfaction but leaves you wanting more. Some people who make money, even those with lots of cash, are only gratified for a bit. Soon, they want to make thousands and thousands of dollars, even if they’ll never use it for themselves or anyone else.
Instead of wanting gratification, look for fulfillment. Think of it as a nice meal that keeps you satisfied for years to come. When you feel fulfillment in life, you gain enough to stay happy for years to come. That’s why some people would rather work a nice and simple job instead of pursuing a higher, better-earning position. Sure, they could make twice or thrice as much as they are now. However, for them, money can’t buy happiness. Ideally, the work they have can cover their financial needs and give their life a purpose.
How do I apply this to my life?
To focus your life on fulfillment, the first step is to look at your personal values. What exactly are you trying to achieve with your expenses? When you start to see your goals, you’ll realize what kind of fulfillment you truly want. For instance, you might be buying a laptop to fit in with your friends instead of using it practically. If money can’t buy happiness, you won’t be fulfilled if you’re too busy keeping up with the Joneses. When you start to change this, you’ll realize true friends accept you wholeheartedly.
6. Success is an accomplishment, not a luxury.
What does this mean?
People might argue that if money can’t buy happiness, then there wouldn’t be successful people. What they don’t understand is that being successful shouldn’t be a sign of luxury. Yes, the drive to excel and outperform can make you wealthy, as seen in icons like Warren Buffett and Bill Gates. However, they didn’t pay their way to success. If you look at their mindset and history, you’ll find their passion for success was what kept them going. Even during the worst financial crises or errors, they worked hard to be successful and to be better. In other words, their success is something they accomplished, not a luxury they spoil themselves on.
How do I apply this to my life?
If you want to achieve success, you have to remember that it takes work. For example, stockbrokers and real estate agents can make millions of dollars a year. However, that’s not because they have an easy job. In fact, the ones who make the most money are highly dedicated to making their clients happy. To understand that money can’t buy happiness, think of the most successful people in the world. What sets them apart from everyone else is their determination to succeed, rather than their lavish lifestyles or costs.
One billionaire that perfectly embodies the phrase “money can’t buy happiness” is Warren Buffett himself. The Oracle of Omaha is one of the richest people in the entire world, but he doesn’t spend more than he has to. He’s known for living in the same house for several decades and eating a simple McDonald’s meal. While Buffett can afford whatever he wants, he chooses to live in peace, not in money.
Takeaways:
- Many people think that money is the answer to everything. However, it’s not that simple. While it can be a powerful tool, money can’t buy happiness.
- What you own shouldn’t define life's value. Instead of focusing on getting more things, focus on what truly matters.
- Happiness comes in several forms. It can stem from achieving personal goals, like writing a book or building a family. It's how you use your money, not how much you have. After all, although money can't buy happiness, it can help you find it.
- The true value of things isn't in their price tags but in how they enhance your life. Always check whether your next purchase or investment is worth the price.
- Every item or service you have comes with a cost, financial or otherwise. The key is to know what to spend on and why. Remember, you shouldn’t buy something simply because you can afford it.
- Instant gratification, like the pleasure of buying new stuff, doesn't lead to long-term happiness. Instead, seek fulfillment in life. It will give you purpose, meaning, and satisfaction.
- Being successful is about accomplishing your goals, not about having more money or luxuries. Like Warren Buffett, strive for success without being materialistic. After all, money can't buy happiness.
Looking for a game-changer to boost your financial and personal growth? Then follow this blog to meet like-minded people who want to step up their game in money and in life. Click here to discover previous articles and discover how you can live life to the fullest! You can also check out my FREE book here, where I show you the most effective ways to become a millennial millionaire!
- Agyei, S. (2015, November 24). Wealth is the ability to fully experience life. Medium.
- Ali, M. (2023, March 28). Money Can’t Buy Happiness — Here’s Why. YouTube.
- Benenden Health. Accessed on May 24, 2023. 7 benefits of walking to work. Retrieved from
- Berger, M. W. (2023, March 28). Does Money Buy Happiness? Here’s What the Research Says. Knowledge at Wharton.
- Marissa. (2021, May 28). 10 Benefits of Minimalism (That Experts SWEAR Are True!). A To Zen Life.
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