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The Happiness Puzzle – Money is Only a Piece of It

The Happiness Puzzle – Money is Only a Piece of It

| October 26, 2024

"Once I get that promotion, I'll be comfortable financially." "Once I have one million dollars for retirement, I'll be set." "Once I buy that dream house, then I'll be happy."

Do these statements sound familiar? They all have the same cause-and-effect mentality: "If I get this, then I'll have that." To an extent, that's correct, but it's missing one crucial point: our human emotions aren't as straight-forward as numbers or facts. One plus one always equals two, but a person plus something they want does not always equal happiness. 

Not to say the old adage "Money can't buy happiness" is entirely true – recent studies have proven that having your financial needs covered does affect your happiness level. There's a caveat, though: once needs are met, emotional wellbeing does not line up with how much money you have. 

So what does that mean? Is it wrong to want a nice home, a higher salary, or a comfortable retirement? Of course not. Like most things in life, it's about balance: recognizing that these things can bring some enjoyment, but they're only a piece of the puzzle. 

"But wait, this whole business is about helping people make more money, isn't it? Isn't this counterintuitive?" It's true that finance is important to us; right on the homepage of our website, we state: "Our first priority is your overall financial success." However, notice it says "first priority", not "only priority". We care about a lot more than just numbers; we care about our clients. About you. 

So let's take a moment to look at happiness – and all of its puzzle pieces. 

What is happiness, anyway? 

There are many different ways to define happiness. Sometimes it's used to describe a short-term spike of positive feelings, when you're doing something you enjoy. Money can buy you that kind of happiness, allowing you to go on a shopping spree, take a vacation, or go out to dinner with friends, but with a catch: it doesn't last. How many times have you looked forward to something fun for days or even months, enjoyed doing it in the moment, and then afterward were left asking, "Now what?"

That's not the type of happiness we're talking about. Rather, it's an enduring, deep contentment with life. This kind of happiness can be impacted by money, but isn't reliant on it or guaranteed by it. 

Let's consider a few examples. First, we have a single mom working two full-time jobs to provide for her children and still barely making ends meet. They're a tight-knit family, and enjoy activities that don't cost a lot. Do they already have happiness? Yes. Would a higher-paying job, where the mom wouldn't need to work as much, make them happier? Yes, as long as it didn't take away the contributors of happiness they already had. 

Second, we have a couple who have reached financial freedom. All of their needs are met, and they can comfortably cover their wants, too. They go on vacations around the world, drive nice cars, and never have to worry about putting food on the table. You'd think they'd be happy, wouldn't you? But they don't have a good relationship with each other, they have no deeper purpose to life, and their "friends" only care about what they can get from them. Despite all that money, they are not happy. 

A few contributors – or puzzle pieces – toward happiness were highlighted in those examples. Let's look into a few of them. 

Personal Relationships

Humans thrive on real, deep connection. Close family members, old friends, and a significant other bring a strong sense of enduring happiness into our lives. As an example, I went on vacation to North Conway with some family and friends a few weeks ago. Six of us stayed in an Airbnb together, and during the day we went shopping, got food out, and did some sightseeing (it was peak foliage, after all!).

We had fun; there happened to be a craft fair in North Conway that weekend, and I love those! I bought some handmade jewelry, my brother bought a 3D printed dragon, and others picked out things that they liked. 

But is that what I valued about our vacation? No, at least not highly. Sure, it's fun to add some jewelry to my collection, but I would be fine without it. The part I really treasured was the quality time we all spent together, especially during the evenings back at the Airbnb. We played board games, shared meals, sat by the river together, and laughed – a lot. It was such a warm, cozy feeling that made me so appreciative to have these people in my life. I felt loved, valued, and connected. 

A few weeks have gone by, and those feelings haven't faded. I feel more connected, more bonded, to these people than ever. The thing is, I could've had that same exact feeling if we hadn't stayed in an Airbnb, if we hadn't bought fun things and went out to eat. Right here at home, we could've cooked a meal, played board games, and bonded. It wasn't about the money; it was about the people. 

Finding Purpose 

Do you ever have a moment where you step back from life and think, "What's the point of all this?" Obviously, the meaning of life is a complex issue that everyone has a different take on, but that's thinking of the world as a whole. Zoom in on your life for a moment. What makes you feel like you're not only surviving, but thriving? What brings you satisfaction and ignites the fire inside you? 

For some people, having a family is their why. They feel deep meaning in being a parent, bringing a new life into the world, and guiding them into adulthood. Others find purpose in helping others, spending their time volunteering and trying to make a difference in the world. Still others want to make a name for themselves, to go down in history as someone significant. And some find meaning in their faith, knowing there is more out there than just our little lives. 

Whether your purpose is small and personal or large and universal, it's another puzzle piece toward the picture of happiness.

Take Care of Your Health

Another factor of lifelong happiness is good health. It's no surprise that illness makes it harder to enjoy yourself. Some things can't be avoided, of course, but there are preventative measures we can take for the best chances. We all know the recommendations: eat nutritious food, move our bodies, and regularly visit the doctor. Even though it's common knowledge, though, that doesn't mean it's common practice. 

Health isn't just physical, either – it includes mental and emotional health, too. Taking breaks, avoiding working too much, taking time away from electronics, seeing a therapist  – all of these are steps to take care of our health. 

That being said, health is irrefutably connected to finances, so in that sense, money can contribute to happiness. Insurance, doctor's visits, medication, gym memberships, therapists, and even being able to get time off of work to take care of your health is costly. That's why it's said that money doesn't necessarily buy happiness, once you're living comfortably with all needs met.

Gratitude and Giving

It's becoming more and more clear that people who are grateful for what they have, and especially those that then give what they can to others, have higher levels of deep happiness. We all know the saying: "There's more happiness in giving than in receiving". An oldie but goodie. Deep inside, we humans are generous, caring creatures. We love to make others happy, even more than ourselves. It's really a beautiful aspect of humankind. 

Giving doesn't have to be grand, either. In one study, a group of people were given envelopes of either $5 or $20. Half of them were told to spend the money on themselves, and the other half were to spend it on others. At the end of the day, it was reported that those who spent it on others were happier. Also, interestingly, the amount of money they were given didn't matter. It was the sheer act of giving that brought them joy (Dunn, Aknin, & Norton, 2008). 

It all comes down to taking the time to notice the good things in our life, and then bringing just a little goodness into someone else's life, too. Those two simple things bring us happiness. 

Humans are wonderful creatures, aren't we? 

Pieces of the Happiness Puzzle

Whoever came up with the saying "Money can't buy happiness" had good intentions, but their intent was lost along the way. After all, people barely making ends meet hear that phrase and disagree. "I'd be a lot happier if I didn't have the stress of living paycheck to paycheck," they might say. The thing is, they're understanding the phrase to mean, "money has no bearing whatsoever on your happiness." However, that phrase actually means something a little different, more along the lines of, "having money is not a guarantee of happiness, but just one contributor toward it." Those pieces of the puzzle – meaningful relationships, purpose, good health, gratitude and generosity, along with money – can promote some happiness, even without all of them. 

So do you have all the pieces of your happiness puzzle? It's okay if not. I don't, but I'm pretty happy with this life I have. If down the road other pieces are added to my life, great. But in the meantime, I'm going to appreciate the pieces I do have, and I hope you can, too. 

Citations:

"Why Money Can't Buy Happiness", Psychology Today, 2023