Money doesn’t buy happiness. That is a phrase that we have grown up hearing a lot and while the origins of it may have been noble (to encourage people to find internal satisfaction), it has since become a phrase that is used to practically discourage people from every wanting to have more money – and that is a problem.
Our economic model is capitalism, which essentially means that money needs to be in circulation for it to function properly. This then means that every single part of our lives will often work best when money is involved.
Money buys experiences
The first reason why money buys happiness is that with money, you can get to experience some of the very best things the world has to offer. With money, you can travel from the Maldives to Mombasa, from the Bahamas to Burma. You can ride a cruise ship, learn new skills through courses, build a great house and so much more.
I know we often say you don’t need much to give, but with more money, you are better placed to be of help to others, and altruism has been shown to increase the levels of happiness that one experiences. So, when you are able to give without putting yourself in a very uncomfortable situation, you will be happier. And having more money allows you to give without leaving yourself worse off.
Away with living in survival mode
Poverty often leads to depression and unhappiness because one lives in a constant state of survival. There is worry about what you will eat today, tomorrow, a week from now. there is worry about whether your boss will need you next month. There is worry about rent. All these lead to unhappiness.
With money, though, and enough money not to worry about meeting your basic needs, and also enough money to afford needless luxuries here and there, you tend to be happier. Your mind goes from survival mode to ‘living’ mode. You simply enjoy living life.
The value of what money can do, rather than the currency itself, is what makes us happy. That said, remember to practice contentment. Endlessly chasing money will also lead to unhappiness. Balance is key.