Relationship Between Money and Happiness

People assume that money would create more happiness but increasing money does not make us happier (Greenberg, 2012; Norton, 2012). According to Greenberg (2012) and Norton (2012) income effects happiness especially as low-income people are less happy because it creates stress and worries. However, it has been highlighted by Greenberg (2012) that people with enough income are happier because they can access education, healthcare, and many opportunities. Moreover, it has been estimated by Greenberg (2012) and Norton (2012) that above $75,000 per year income creates limited happiness, but under this amount people increase their earnings and happiness. In addition, Norton (2012) indicates that people who have more money and possessions believe it makes them more attractive. Nonetheless, many people start to compare and compete with their neighbors and friends, especially a luxurious lifestyle (Norton,2012). Furthermore, it has been pointed out by Greenberg (2012) that people measure their income each year and desire to earn more money to create happiness, but money does not bring happiness, it eradicates stress. For instance, the richest person is not necessarily happy because they always desire more money.  Additionally, people believe that more money brings the double happiness, but Greenberg (2012) found that happiness only increased by 10% and Norton (2012) claims 9%. To sum up, Greenberg (2012) and Norton (2012) concur that happiness derives from spending money on family, friends and donating to charity, but money alone is not the significant key of happiness.

Written by Fari, Fares and Keying 

References

Greenberg, M., 2012. In what ways does money affect happiness? Psychology Today [online] Available from: https://www.psychologytoday.com/experts/melanie-greenberg-phd.

Norton, M., 2012. More Money, More Happiness? NewScientist [online] Available from: http://subscription.newscientist.com.