Did You Know Money Does Buy Happiness?

The old philosophical question, does money buy happiness? is much more black and white then you may think.

I have a question for you, what makes you happy? your partner, family, friends, your work, doing activities you love, health, holidays, helping others, eating, money? let me know below!

For most of you happiness comes when there is a healthy balance between all of them. When that balance is broken you will be unhappy, you can have the best job in the world, but with a break down in your relationship your happiness will be affected.

Money Is The Glue To Happiness

What if I told you money is the glue that can keeps the balance?

You want to hang out with friends? often that involves going out… and money. If you don’t have money you either (like me), opt to not go out, or you stress the whole time about how much you are spending.

Most of the activities we love doing involve money. You love surfing? you need to buy a board. You love gaming? how are you going to get any games without money. Hell, even simple activities such as reading requires spending money.

One thing I love is health and fitness. Sure you can be healthy on a low budget and you don’t need a gym membership to get fit. But having a membership means I can train year round, and buying a variety of produce means I can cook lots of healthy and delicious meals.

But what if you are a humanitarian who gets satisfaction out of helping others? I can tell you this, you can have a much bigger impact on the lives of others with the right resources.

And arguably the biggest factor of moneys impact on our overall health, is its ability to provide financial security, resulting in less stress. You can pay your bills and you can pay for any unforeseen circumstances such as medical bills for loved ones.

Still Not Convinced Money Buys You Happiness?

Lets look at the psychology behind it.

Abraham Maslow, one of the most well known psychologists of all time proposed the hierarchy of needs in his 1943 paper on human motivation. To this day students are still taught about the hierarchy of needs in psychology, business, marketing and philosophy (I am sure other subjects teach it as well).

How does this relate to money?

Basic Needs

Humans have two basic needs, the most essential being physiological needs; food, water, warmth and rest and the other being safety needs; sense of security.

What did you sleep on last night? I’m guessing a bed. How did you get that bed? Either you, or your parents bought it.

What did you eat for dinner? I ate chicken, brown rice, and brocolloi. Where did I get it from? The grocery store.

When it’s cold we tend to put the heater on for warmth, when it’s hot it is the air conditioner. Without money we couldn’t pay for the electricity bill.

As for security, as I discussed earlier money gives us financial security and as such peach of mind (psychological security). It can even pay for physical security in the form of security doors, shutters, alarm systems, or even security guards.

Psychological Needs

Apart from taking your partner out on a nice date, how does money achieve the needs of belonging and love?

Our need for belonging refers to our want to be a part of something; a cause or a group.

In marketing we utilize this need for belonging by advertising products and sending a message that those who own the product will be a part of an exclusive group. It works, people want that sense of belonging and to be a part of the group so they will purchase the product.

Purchasing products, especially high end, luxury items also satisfy esteem needs. Why else do high net worth individuals buy $3000 suits, $100 000 cars and fly in private jets? its all for their esteem and to show off.

In younger individuals having the new Iphone might be a way to show off to their peers.

For a charitable person, donating money may be something that boosts their esteem.

For a beautician having nice makeup, or your hair and nails done also boosts esteem.

And back to the love need, hell, even if there’s a break down in your relationship you could use money to see a relationship councilor, or to take some time off with your partner and focus on yourselves.

Self-fulfillment Needs

Self-actualization is the hardest need to come by, it refers to the realization or fulfillment of ones needs and potentialities. It’s the sense of achievement.

For many people it might be buying their dream house, or dream car. For others it might be to go on their dream holiday, or be promoted to a role they have been chasing a very long time.

All of those self-fulfillment needs are based of the need for money.

Does Money Buy Happiness?

It’s clear that being happy involves a balance of various components within our lives. Without that balance one cannot be completely happy.

Money is the glue that helps secure the balance between all of our various needs as established in the demonstration using Maslow’s Hierarchy of Needs, it provides everything from our most basic needs to the most difficult need to satisfy.

So let me know what you think, does money buy happiness?