Money and Happiness - The Search for a Link Continues
The timeless search for a connection between money and happiness has spawned several new stories on the topic. A recent article on Bankrate.com, for example, said research has found some interesting variations in happiness by income. Most notably, while happiness increases a lot for one who moves from poverty to the middle class, beyond that, increases in income provide negligible increases in happiness.
The August issue of Money Magazine also weighed in on the topic, citing three research-based reasons why money and what it can buy so often fail to deliver the joy we expect: We tend to overestimate how much pleasure we'll get from having more; more stuff can lead to more stress if that five-bedroom house comes with a long daily commute; and, of course, we tend to compare what we have to what others have. What does lead to happiness? One factor that has stood the test of time is good relationships.
Matt's View
A phrase that has entered the popular personal finance vernacular is "the latte factor," which suggests that people could do a better job saving money if they changed small habits like skipping that overpriced cup of caffeine. While there's some wisdom in that, the happiness research tells us that if a cup of coffee is what it takes for us to spend time with friends, it may just be one of the wisest uses of our money.
Managing Money by The Book
- "I delight in your decrees; I will not neglect your word." - Psalm 119:16
Recommended Resources
- Money Strategies for Tough Times
- Are you feeling the effects of today's economy? Who isn't? "Money Strategies for Tough Times" can help you successfully navigate the tough times, get to a better place with your finances, and stay there. In this new book you'll find...…Read the rest
View All »