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Money Matters
How to Use Your Money to Enhance Your Happiness
Money is often considered as one of the most important factors for happiness. But does having more money really make us happier? Or does it depend on how we use our money and what we value in life? In this article, I will explore some of the research and insights on the relationship between money and happiness.
Money and Basic Needs
One of the most obvious ways that money can buy happiness is by helping us meet our basic needs, such as food, shelter, clothing, and health care. According to the World Bank, about 10% of the world’s population lives in extreme poverty, meaning they live on less than $1.90 a day. For these people, having more money can make a significant difference in their quality of life and well-being.
However, once our basic needs are met, the effect of money on happiness diminishes. According to a famous study by economist Richard Easterlin, people in richer countries are not necessarily happier than people in poorer countries. Moreover, as countries become richer over time, their average happiness does not increase. This phenomenon is known as the Easterlin paradox.
