How much happiness does money really bring you?

Two very important studies shed some light on this very old topic of well-being and wealth.

Hey there,

This week I'm enjoying some days off in Curacao. I’ve had the chance of visiting this destination with my wife and two friends, and so far it has been the ultimate relaxing experience.

It is amazing how in so much free time, that we have in this place, I manage to get so little done. It proves hard to stay even a little bit productive during holidays.

During our time, we got into an exciting discussion about money, and how it affects the sense of well-being of people.

You know, questions like “How much money is enough money?”, or “Do lots of money bring extra stress and troubles?”

Interestingly, there are studies done, that examine this kind of connection. Does money make you happier? And the answer is yes! Up to a point, at least. According to this article, the more people are earning, the more their perceived well-being increases. Not infinite, but up to a plateau of 75.000$—the study was done in the US, so this is a number that can differ in other countries. This was the amount of money needed to cover a bit more than the basic needs of the people asked.

This has been the most influential study on the topic until another article—more well-rounded—got published in 2021, where the results eliminated the aforementioned plateau. In other words, the happiness/well-being of people increased linearly as their income increased, and this didn't seem to stop past the 75.000$ mark.

It goes without saying that this topic is more complicated than that, but it certainly challenges the “Money does not bring you happiness” notion.

The point I took from this topic is that money is still a confusing topic for many people, it is also very often a taboo topic to discuss, and the educational system in most countries does not educate students to manage money.

So my suggestion to you is this: Take advantage of the tools that the internet gives you and learn whatever you can about financial well-being. What factors influence it, and how can it be improved? Learn also: How much should you save to absorb a financial shock? How much of your money should you invest, and how?

It's mind-blowing that such knowledge that should be taught in schools is completely unknown to a big number of people. Hopefully, after reading this, you become inspired to look all this information up—if you don't already know.

This is all for now. Have a good one! ✌️