money is the key to happiness essay muet

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Money Is The Key To Happiness

Filed Under: Essays Tagged With: money

Money is the key to happiness. Without money we are nothing. Do you agree with this statement? Thousand of years ago, the barter trade used to be a way of exchanging goods but came to an end afterwards due to the introduction of money. Since then, human society has changed rapidly. Commerce has got simpler and doing business with other countries further afield is no longer out of question. But these changes are not all which were taken into consideration. First and foremost, material possession is believed to give a guarantee of future happiness. Money do meet the basic human need for food, clothing and shelter as well as offer people with the advanced service from health care to cosmetic surgery. Moreover, good financial condition guarantee a promising future for people and their relatives. Consequently, many parents slog at work in hope to provide their offspring with excellent education and great comfort. Once people can do have a decent life and ensure the long-term stability in the future, they are inevitably filled with happiness.

On the contrary, the poor, who always live from hand to mouth, are completely isolated from modern society. They are engaged in a desperate struggle with numerous life-and-death difficulties to make ends meet and support their families. For example, in some underdeveloped countries in Africa, the refugees are usually seen living on many streets and getting no access to medical care or primary education for kids. Food and clothing are of their great concern and a happy life seems to be out of reach. All in all, long-term happiness relies on stable finacial condition, which is by no means obtained without money. On the other hand, money is not only something to obtain but it also generate the necessary motivation for every individual in their way of life. For example, many parents try to work arduously to supply their children with good education. When they graduate from the university, they may expect to ante up much money to support their beloved parents and run their own business.

The Essay on Good Country People 2

This essay will delve into the life of Flannery O’Connor not only as it is told biographically but as her life relates and is reiterated in the stories she writes. By using O’Connor’s fiction as a backdrop to her life, the essay will focus on the bizarre characterization of the protagonists of O’Connor’s stories as much as O’Connor herself was a very unique person. Thus, O’Connor will be ...

As a result, money is perceived not only a goal but also a powerful incentive which impels people to face any difficulties with great bravery. From then, they may grasp their own meanings in the society and enjoy their lives happily. In addition, money can bring happiness to other people as well. Nowadays, many remote parts of the world are still suffering from terrible natural disasters. For that reason, the monetary assistance from the international community is inevitably invaluable to them. This, finally, may help relieve their suffering partly as well as show them a ray of hope for a better life.

Nevertheless, there is a grain of truth in the assumption that money sows seeds of the unhappiness. In such a materialistic society, whether our lives are comfortable depends too much on money and sometimes, the attempt to make ends meet exhausts people utterly. Moreover, they prone to getting materialistic and even too self-absorbed to spend time with their famlies, which ultimately culminates in their bitter regret someday. However, money just fulfills their function as a supportive factor contributing to our full happiness and whether it does harm to people is dependent completely of how it is used. Overall, money supply the initial stability to lead a happy life and help people enjoy it immensely . However, be careful or the misunderstanding of its function possibly results in unexpected consequences.

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Argumentative essay structure for muet.

• March 15, 2022

In an argumentative essay as the word suggests, you will have to present arguments for why you agree or disagree to the topic . This is the type of essay that will ask you to take a clear stand on the topic being discussed.

You will then need to explain your position on the topic by presenting a systematic reasoning regarding the subject matter. This should be done in such a way that it is going to make it easier for the reader to understand your way of thinking.

In this blog I’m going to take you step by step on how to write an argumentative essay. You will understand the structure of an argumentative essay and how to explain yourself in the different paragraphs.

This would be the content of my blog.

• BLOG CONTENT
• What is an argumentative essay?

Argumentative essay sample question

Writing structure of an argumentative essay.

• The introduction

The body paragraphs

• The conclusion

Types of essay in MUET task 2

The Malaysian University English Test (MUET) writing task 2 will consist of only one essay question. They are going to be one of these three types of essays :

• A discursive essay
• An argumentative essay
• A problem-solution essay

The argumentative essay is one type of essay that you may get in the MUET writing task 2. You are going to have to take a stand and to write your arguments out clearly based on the statement given.

In making your stand you are going to choose whether you agree, disagree or partially agree to the subject matter.

From my experience as a teacher, I could see that in a well written argumentative essay, the student is able to engage the reader well.

This student is able to explain the issue being discussed by presenting arguments agreeing or disagreeing to the topic and considering it from different perspectives. This could also involve presenting the counter arguments for the topic. When you present a counter argument, you are giving the opposing view of what you have said before.

Let’s now look at a sample question for an argumentative essay that you may get for MUET writing task 2.

This is a sample of an argumentative essay question that you can get in MUET writing task 2.

Before going any further I would like to highlight the task that you will need to fulfil. Here in the red box is your task. It is asking you of how far you agree to this statement. Here it is clear to see that this is going to be written as an argumentative essay.

You will need to remember the main objective of writing an argumentative essay. It is for you to persuade the reader to understand the points that you are making and to agree with your views. You are writing to influence the reader to think your way.

The topic of discussion for this essay is the statement given by the guest speaker. And the statement given was that ‘Money is the key to happiness’.

On the day of the MUET writing paper, the first thing that you need to do will be to read the question carefully and to make sense of the question.

Let’s find out more about the topic and the task here in this question.

This topic suggests that money is the determining factor to achieve happiness in one’s life. Without money then, the person will not achieve happiness. The person will not be happy.

After understanding the question the next thing you need to do is to take a stand. Decide on whether you agree, disagree or partially agree to this statement.

How do you decide on your stand? Well, you will choose the stand where you have a lot to write about. Choose your side where you have more content points to write about and where you could easily explain you ideas.

In order to decide your stand you are going to brainstorm on the content points first. 

These are the content points that you can have for your essay.

• Able to buy things and new experiences
• Brighter future
• Meaningful relationships are key

Based on the content points that you have come up with you can now make your stand. You then decide to take the middle ground and say that you partially agree to the topic. 

You will then choose two points to agree and another one point to disagree.

The argumentative essay that you will be writing will be made up of 5 paragraphs. The five paragraphs are as such:

• Paragraph 1

Introduction

• Paragraph 2
• Reason to agree in topic sentence 1 [TS1]
• Paragraph 3
• Reason to agree in topic sentence 2 [TS2]
• Paragraph 4
• Reason to disagree in topic sentence 3 [TS3]
• Paragraph 5

So, the structure given here is for the essay where you are going to partially agree.

The three content points would be made up of two content points to show that you agree and the third content point would be one to show that you disagree to the statement.

I normally advise my students to choose the middle ground when writing an argumentative essay. So basically, I encourage my students to take the stand of partially agreeing when writing an argumentative essay.

I encourage them to do this because I believe that writing an argumentative essay where you partially agree shows that you are quite knowledgeable in the topic. Here the students will have to provide both sides of the arguments for and against the topic being discussed.

This certainly shows critical thinking on the student’s part.

However, it is equally fine if a student decides to choose to take a stand to totally agree or to totally disagree on the topic.

Start your essay with an introduction. The stand that you are making in the introduction is that you are partially agreeing to the topic.

• INTRODUCTION
• Background information related to the topic
• Thesis statement
• Make your stand

Start your introduction with a hook. A hook is something interesting or clever that you say in the start of your essay to attract the reader to read on. Relate this hook to the topic of money being the key to happiness.

Next provide some background information on the topic being discussed. Add in observations that you made regarding money and how it affects people’s lives.

After this you will need to write your thesis statement. A thesis statement summarises your content points to support your argument for why you have chosen to partially agree to the topic. 

The last sentence in your introduction will be you making your stand. 

The body paragraphs contain ideas for or against the topic. This is where you are going to influence the reader to see your point of view from the content points that you present.

Because this essay is going to take the middle stand where you are going to partially agree, the paragraphs are going to be arranged as such.

Content 1 and 2 support the topic

This is how the paragraphs for the content points are going to be written. Content 1 and 2 will be you presenting your arguments on why you agree that money could be the key source of happiness.

This would be how you will write these paragraphs.

• Use a sequence connector like 'firstly, first and foremost' etc.
• Justify the reason to agree
• Provide evidence with an example
• Close paragraph

Start your first content point with a sequence connector. These are such as ‘First and foremost’ etc. I always tell my students to always have sequence connectors as it will provide your essay with more structure.

After the sequence connector is your topic sentence 1. TS1 is where you will provide your first reason for why you agree that money is key to a person’s happiness.

After stating the reason you will of course need to justify why you said that. Also provide an example for your reason. You will need to tie up your example with the TS1 to ensure that what you have said is relevant to the point you are making.

The last sentence will be the closinig of the paragraph. You can reinstate TS1 here by rephrasing the sentence. Make this sentence sound like it is the closing of the paragraph.

Move on to the second content point after this.

• Use a sequence connector example like moreover, next, in addition etc.

Start the second content point with a sequence connector. Use a sequence connector that signals the continuation of your points. You can use sequence connectors such as ‘Moreover.., In addition..’ etc.

Using this will tell the reader that the paragraph you are writing is a continuation from the paragraph before and that you are still agreeing to the topic.

Provide your second reason for why your agree to the topic in topic sentence 2. Like the paragraph before provide a rationale for why you agree that money is the key to happiness. And after this add in evidence for why you feel that way.

Lastly have a closing for your paragraph by reinstating your TS2. Again this closing sentence would need to sound like you are ending the point that you are making. 

Content 3 contains the counterargument

The third content point contains the counterargument for the topic. When you provide a counterargument for a topic you are presenting a reason to oppose the idea.

• Use a sequence connector like 'Nevertheless., On the other hand.., However..' etc.
• Reason to agree in topic sentence 3 [TS3]

Again, start your paragraph with a sequence connector. Use a sequence connector that signals the contrast of an idea. It is important for you to use one here as you are informing the reader that you are presenting a counterargument of your ideas before.

Use ‘on the other hand or however, to do this. Then add in your reason for why you are disagreeing to the topic. Here you are now saying that you feel money is not the key to happiness and that you are giving another suggestion. 

Justify why you feel this way. Provide an example to make your point become clearer. You can mention perhaps about what you can read in the papers of examples of how unhappy the rich and famous could become. This is regardless the factof having so much money.

Finally provide a closing for this paragraph.

Lastly is the conclusion of your essay. This is where you summarize the points that you have given and reinstate your stand on the topic.

• Use a sequence connector like 'In conclusion.., To conclude..' etc.
• State the topic of discussion
• Summarize your content points
• Recap your opinion on the matter [balanced view]

Use  asequence connector like ‘finally or to conclude’ to signal that this is your concluding paragraph. Next add in the topic of discussion to remind the reader again of the topic.

Provide a summary of the three content points for your essay. It is important that you rephrase your points so that it does not sound like you are repeating yourself. 

Next recap your opinion regarding the topic. Present it in such a way that you agree to the topic but to a certain extent only as you also feel that you also disagree to it. Provide a balanced view here.

Lastly give your conclusion an ending.You can mention about a hope perhaps that our society could find that balance of having money and other improtant aspects of life.

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MUET essay writing test guide and tips

The MUET writing test is all about demonstrating your written communication skills. While it may seem like a difficult prospect at first, our guide will help you prepare for and understand the tasks that are required for you to succeed in this

The MUET writing test evaluates your ability to communicate ideas effectively in written English. You also need to demonstrate the necessary writing skills required for higher education. Plus, the ability to translate and transfer ideas formally and informally is tested. In this article, we guide you through how the test is structured, how it is assessed, what tasks you’ll have to complete, and some tips for success. 

What is the format of the MUET writing test?

What does the muet writing test evaluate, how is the muet test scored, what are the muet writing test tasks, muet essay sample questions, muet writing test essay structure example.

Top tips for the MUET writing test

The MUET writing test was changed in 2021 with a new structure introduced. You have 75 minutes to complete the two tasks of the MUET writing test. The weighting for the test is 25 per cent of the whole MUET exam score. The writing test is weighted the same as the listening , reading , and speaking tests. Each of the MUET tests is scored out of a maximum mark of 90. 

The MUET writing test evaluates several essential skills and your ability in each. You are assessed on your use of the English language and for your accuracy in completing the task. Examiners are also looking to test for:

Writing with good grammar and punctuation 

Analysis, interpretation and understanding of information

Information transfer 

Critical thinking skills

The expression of opinion, argument and perspective

Remember, it’s important to read the questions in the test carefully so that you answer in a way the examiner expects. In addition, it’s a good idea to sketch out your ideas before starting to write. That way you can select the right vocabulary and phrases for the best result. 

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MUET test scoring is based on the Common European Framework of Reference for Languages (CEFR). Since 2021, the test is scored using nine bands, changing from the previous six to align with CEFR. If you’re not familiar with how the CEFR ratings work and how MUET is marked, you can refer to the table or watch the video below.

Band 5.0 & 5+  (score of 294 -360)  CEFR C1 & C1+ :  Proficient

• Can understand a wide range of demanding, longer texts, and recognise implicit meaning
• Can express him/herself fluently and spontaneously without much obvious searching for expressions
• Can use language flexibly and effectively for social, academic and professional purposes.
• Can produce clear, well-structured, detailed text on complex subjects, showing controlled use of organisational patterns, connectors and cohesive devices.

Band 4.0 & 4.5  (score of 211 - 293)  CEFR B2 :  Independent

• Can understand the main ideas of complex text on both concrete and abstract topics, including technical discussions in his/her field of specialisation.
• Can interact with a degree of fluency and spontaneity that makes regular interaction with native speakers quite possible without strain for either party.
• Can produce clear, detailed text on a wide range of subjects and explain a viewpoint on a topical issue giving the advantages and disadvantages of various options.

Band 3.0 & 3.5  (score of 123 - 210)  CEFR B1 :  Independent

• Can understand the main points of clear standard input on familiar matters regularly encountered in work, school, leisure, etc.
• Can deal with most situations likely to arise whilst travelling in an area where the language is spoken.
• Can produce simple connected text on topics which are familiar, or of personal interest.
• Can describe experiences and events, dreams, hopes and ambitions and briefly give reasons and explanations for opinions and plans.

Band 1.0, 2.0 & 2.5  (score of 1 - 122)  CEFR A2 :  Basic

• Can understand sentences and frequently used expressions related to areas of most immediate relevance (e.g. very basic personal and family information, shopping, local geography, employment).
• Can communicate in simple and routine tasks requiring a simple and direct exchange of information on familiar and routine matters.
• Can describe in simple terms aspects of his/her background, immediate environment and matters in areas of immediate need.

The MUET writing test consists of two tasks. The first is what is known as the MUET letter of email writing task. The second is the MUET extended English essay. Let’s begin by looking at task one.

Task one: MUET letter / email

For task one, you need to reply to an email or letter that is given to you. You will need to write a suitable response. This task is marked out of a maximum score of 30. It accounts for 33 per cent of your overall MUET writing test score. You shouldn’t spend more than 25 minutes on this task.

It’s important to note that the task requires about 100 words or more, so this is not a long written task. You will need to practice being brief and communicating your ideas in a shorter format. This is a skill that is tested for. For this task, the required English language proficiency is a CEFR level ranging between a minimum of A2 (elementary) to C1 (advanced).

Task two: MUET English essay

For task two of the MUET writing test, you will need to write an essay based on a statement or question provided. This statement is designed to encourage you to form an opinion or argument on a given topic. It’s all about getting to engage in a discussion on an issue. What is nice about the MUET essay task is that you can structure your response depending on the nature of the question. 

For example, you may need to produce an essay discussing the topic in general. Alternatively, you can create an essay that strongly argues a particular opinion or solution to a problem. These three types of essays are formally called:

Discursive essay 

Argumentative essay 

Problem-based essay

It’s essential to select the right language for the direction you take with the essay. The language you use should be more formal in this task as it needs to reflect your ability to write in a higher education setting. 

Your essay will need to be 250 words long or more and the CEFR level required is between B1 (intermediate) and C1 advanced. 

Don’t forget that the MUET essay task is marked out of 60, which is 66 per cent of your total test score. That’s why you’ll need to spend a bit longer on this task, approximately 50 minutes or so. Don’t rush the essay task, as this can impact your overall result. 

You’re probably wondering what type of question you're asked for the extended essay writing task. Luckily we have some examples:

MUET writing task 2 question example 1

You attended a talk by a new graduate talking about their career choice. The following comment was made by the guest speaker:

“A person’s career choice should be based on his or her interests.”

Write an essay of at least 250 words expressing your opinion of this statement. 

MUET writing task 2 question example 2

You attended a talk by a successful CEO of a company at a college Open Day. The following comment was made by the guest speaker:

“Money is the key to happiness.”

How much do you agree with this statement? Write an essay of at least 250 words . 

MUET writing task 2 question example 3

During a career day held in school, a guest speaker made this comment in his speech. 

“Employers only look for academic excellence when hiring.”

Write an essay of at least 250 words expressing your opinion on this view

To ace task two of the MUET writing test, you must know how to structure your essay well. There are some essential components to any good essay:

Introduction 

Context and topic information to get attention

Statement of opinion 

Argument justification

Main content 

Point one 

Introduction to point

Reason for your position

Examples and evidence to support the statement 

Point two 

Link from previous and introduction to point

Reason for your opinion or position 

Examples and evidence to support your statement 

Conclusion 

Point three

Connect to the previous point and introduce the final point

Reason for your position, opinion or argument 

Example to justify what you are saying 

State the main points of the discussion and topic 

Provide a summary of your position 

Justify this position and why you chose this angle

A good way to think of this structure is for each component to be a paragraph. For the MUET writing test task two, that would mean about 50 words or above for each paragraph. Try to think carefully about each point you want to make and why you agree or disagree. 

For example, when discussing whether money is the key to happiness. You may want to think about this issue on an individual, community and national level. You could compare elements such as health, experience and love, which money can’t buy. Perhaps you want to think about what personal happiness means. 

Top tips for the MUET writing test 

You'll probably want to know what our top tips for success in the MUET writing test are: 

Practice your English language writing as much as you can 

Make notes and lists of words and vocabulary to expand your language knowledge 

Use practice questions to develop arguments and opinions 

Engage in English language discussions to formulate your ideas

Review MUET test model answers 

Use brainstorming and study notes to plan potential essays 

Understand the test format, scoring, and timings

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However you spend it, money isn’t the key to happiness

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How important, if at all, is having more money for our happiness and well-being? Unsurprisingly this question stimulates a lot of opinion and debate. But are people accurate in their predictions about the benefits of having money?

A new study published in the Journal of Positive Psychology highlights that people are often mistaken in how spending our money might benefit our lives. People are prone to forecasting errors – that is, they mistakenly predict future events to be better or worse than they actually turn out to be.

In this latest study the researchers show that people predict that buying material possessions will be a better use of money than spending instead on life experiences. But once the purchases are had, the experience is what’s perceived to have been a better use of money, resulting in higher well-being. More or less, this confirms findings from other studies . And so it seems that a focus on having as opposed to being may limit human potential.

But what does this new study tell us about the importance of money for both happiness and well-being more generally? On the whole money matters much less than people think and has led some to conclude simply that money doesn’t make us happy because we aren’t spending it right .

My own research has also illustrated that we probably don’t spend our money on the things most beneficial for well-being. For example, we have shown that spending on psychological therapy would be an extremely cost-effective way of raising well-being . But, the message from our research is not that we should just spend our money better and that people underestimate the effect of purchasing certain things, as the authors claim in the latest study. Instead, our work highlights just how relatively unimportant money is at raising individual well-being compared to other more important things.

More to life than money

How to spend our money is not the only choice we have – we also have choices as to how we should live our lives and whether in fact we should spend so much time and energy pursuing money in the first place. Thus when we are trying to understand the importance of money for well-being it is one thing to compare types of spending, but really we should be comparing how important money is in relation to other things.

The reality is that how much someone earns contributes very little to their sense of well-being compared with other things such as social relationships, physical and mental health or how a person relates to the world around them. Focusing directly on these factors would probably do much more for our well-being rather than how we chose to spend our money.

We have demonstrated that personality change, for example, contributes substantially more to changes in well-being than income factors . People who, for example, become more open to new experiences or emotionally more stable, are much more likely to experience larger well-being changes than any change to their income.

Being materialistic is well-known to be detrimental to an individual’s well-being. Those that pursue wealth and possessions consistently report lower well-being than those that don’t.

So a better question to address than how we should spend our money is: “Why does more money seem to bring us very little well-being even though we often predict otherwise?”

Money and social standing

One reason is that people don’t care about how much money they have per se, but care more about the social position that their income gives them . But increases in an individual’s income won’t necessarily equate to a growth in social standing. And, while people may think that an income increase will bring greater well-being, this may not factor in that everyone else may experience an income increase at the same time.

It’s also been shown that income losses have a much greater impact on well-being than equivalent income gains . This suggests that any benefit that accrues from an income rise, whether at the individual or national level, may be completely wiped out by much smaller income losses. The importance of income is therefore not in obtaining it, but avoiding losing it. Only once it’s obtained does income become essential to maintain your current level of well-being and this may partly explain why it is believed to be so important for well-being.

The question as to whether more money brings greater happiness comes up time and time again and will no doubt continue to do so. Indeed it is an important question and how we spend our money is of course important – if we have money then of course it makes sense to use it wisely. But it would be a mistake to let the pursuit of money for the sake of happiness distract us away from the things in life that simply matter more.

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Ielts exam preparation for a higher band score., ielts essay: money is an important source of happiness.

IELTS Essay Topic:

Some people like to save money because they consider it is an important source of happiness. Others believe that money should be spent as it is the way to fulfill our dreams.

Discuss both the views and give your opinion.

Give reasons for your answer and include any relevant examples from your own knowledge or experience.

Sample Answer: Money is an important factor to achieve happiness. Different people use money in different ways. There has been a considerable debate on the issue whether we should save money or spend all on our needs.

On one hand, it is believed that money should be spent on things and on our needs, because it is a major source of getting happiness in life, if we do not have money, we cannot survive in this modern world anymore. So, it is rightly said that life is like an ice-cream, so we should enjoy it before it melts. In other words, we should take benefits from each and every moment of the life. For instance, with the help of money people can easily uplift their status in the society, because every individual wants to develop his or her living standard, which in turn helps them to raise their personality in the world.

On the other hand, it is considered that, people should save money in order to secure their future. Mostly people save money for their children, because the savings will help them in their further life for their better education and basic needs, which are necessary and play a significant role in one’s life. Money is a valuable thing, because nowadays without money, it is very difficult to stand in the society. So that is why people should save money for the rainy days, because everyone goes through the ups and downs in life and who knows when we need some extra savings.

In conclusion, both aspects have their own values and that is why we should spend money within a limit- for important and basic needs, because if we spend all the money we earn, there will be no money for the better future.

[Written by – Arman Josan]

2 thoughts on “ IELTS Essay: Money is an important source of happiness ”

This short essay deeply inspired me showing me how to deal with money.

Hello everyone, I’m really fascinated to learn English on my way with extremely fluent as well I’m really passionate about accent of American English. I’m living in Toronto, Canada and my name is Mike. My WhatsApp number is +1 416-931-7377. Thanks

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Money is the Key to Happiness: Exploring the Complex Relationship

How it works

• 1 Money’s Role in True Happiness
• 2 The Ease That Comes With Money
• 3 Money’s Significance in Family Life
• 4 Buying Time with Money
• 5 Works Cited

Money’s Role in True Happiness

One of the begging questions people spend plenty of time analyzing is whether money can bring true Happiness. The premise of this question is hazy, however. Just like anything in someone’s life, money can bring true Happiness. Mentioning the fact that money won’t automatically bring Happiness to fruition is vital as it pertains to this topic. There are a variety of aspects in one’s life that helps determine whether or not they will be happy.

The question at hand, in this case, is if money can bring true Happiness. The key word in this question is “can.” If the question were to be, “Will money bring true happiness?” my response in this essay would begin with a much different approach. I strongly believe that money can bring about true Happiness, as having money: results in many aspects of life being significantly easier. It is critical to raising a family as most people intend to raise families during their lifetime, and having the finances to support this is necessary, and lastly, money has the capability to bring true Happiness the fact that it helps free up one’s time. It’s noteworthy to understand that money does not ensure true Happiness, rather that it has the ability to bring someone true Happiness.

The Ease That Comes With Money

Life comes easier in a variety of ways when someone has a comfortable amount of money for themselves. I found an interesting article in the Student Edge News that demonstrates, “Just because money makes life easier doesn’t mean it makes life better. Going down the cheap path in examples like backpacking will provide a far more interesting and adventurous trip than living luxuriously and staying in only the nicest places.” The first line in this statement simply mentions that money does indeed make life easier but doesn’t necessarily make life better. It seems as if most people have a common understanding that money makes life easier. Another piece of this article states, “Think of it like this: You can buy a gold-plated, diamond-encrusted car worth millions, and you would be getting exactly what you paid for; a car with a small fortune of treasure embedded into it. This purchase may inspire envy in others, but I doubt it would make your life any more personally meaningful.” This depicts the idea that, yes, while money is nice, it doesn’t necessarily make an individual happier. It’s vital to ensure that there is meaning behind money and how it’s spent, which is what I find that this statement demonstrates. Furthermore, there are ways that money simply makes life easier. One particular way I find money makes life easier, which is worth mentioning, is that it pays the bills. Paying the bills and doing so on time is a common worry for a lot of people who are either supporting just themselves or their families as well. Without financial stability, it’s difficult for people to meet the cost of their bills, or it is tough to do so in a timely manner. When someone is able to pay their bills without worry, life comes at an easier pace. It creates one less thing to worry about, relieving both pressure and anxiety as well.

Money’s Significance in Family Life

The financial requirement needed to raise a family is also a source of Happiness. When an individual has enough or more than enough money, they are capable of raising a family and providing for them generously. From personal knowledge and experience, I find having a comfortable financial situation to be highly beneficial for raising a family for multiple reasons. Having money gives people the ability to raise their children in a better neighborhood and nicer environment, as well as allows parents to send their children to better schools, providing a better or privileged environment. I did some more research on school environments and the impact it has on students. The New Hampshire Department of Education shares an article that speaks upon this topic. It says, “Studies have shown that student achievement can be affected either positively or negatively by the school environment.” The article also goes on to mention all the specific ways a school environment can be enhanced. To elaborate on this quote, having money gives students the opportunity to be put in better school environments, which, as mentioned in this article, is a significant factor in ultimate student achievement. I wanted to dissect the concept of achievement and why it has a common belief to be a driver of ultimate Happiness. The Chief Happiness Officer Blog includes an inspirational set of words that go as follows; “Happiness lies in the joy of achievement, the thrill of creative effort. The human spirit needs to accomplish, to achieve, to triumph, to be happy.” What these inspirational words demonstrate is the role that achievement plays in bringing Happiness to fruition.

Buying Time with Money

Although money doesn’t always buy Happiness, it typically buys time. Having money gives people the ability to pay for goods and services, which commonly frees up significant amounts of time. Being able to pay for services such as a maid gives an individual extra time by diminishing something he/she would otherwise have to do themselves. Being financially stable also provides more opportunities to purchase already-made food at restaurants. While this is often more enjoyable than eating at home, it is also another way for someone to free up time. By having money to spend freely on already-made foods, the need to make food is diminished. I did further research into a study published by the Proceedings of the National Academy of Sciences that suggests, “When people spend money on time-saving services such as a house cleaner, lawn care or grocery delivery, it can make them feel a little happier.” This particular finding mentions that these time-saving services can actually increase one’s Happiness, which I definitely find to be true.

The common query of whether money can buy true Happiness ultimately falls within a grey area. There are a variety of ways in which money can bring unhappiness, which needs to be acknowledged. I believe in such a thing as too much money and money falling into the wrong hands. Having money takes a significant amount of responsibility required, and isn’t always easy to manage. Despite this, after examining the concept that money can buy Happiness, one can look at all of the time, family support, and ease that only money can buy. With these capabilities that are all driven by having comfortable amounts of money, it’s actually quite easy to see how money can bring true Happiness. When looking at this question in its most simple context, I think people will come to the realization that money most definitely can buy Happiness, although it doesn’t guarantee it.

Works Cited

• Alexander. “Happiness in Achievement.” The Chief Happiness Officer Blog, 12 Dec. 2007, positivesharing.com/2007/12/happiness-in-achievement/.
• Aubrey, Allison. “Need A Happiness Boost? Spend Your Money To Buy Time, Not More Stuff.” NPR, NPR, 28 Aug. 2017, www.npr.org/sections/health- shots/2017/08/28/545839192/need-a-happiness-boost-spend-your- money-to-buy-time-not-more-stuff.
• Warren, Caydee. “Does Money Make Life Easier or Harder?” Student Edge, 16 Aug. 2017, studentedge.org/article/does-money-make-life-easier-or-harder.
• “Why School Environment Is Important.” Skip Navigation, www.education.nh.gov/instruction/school_health/health_coord_environ.htm

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Home — Essay Samples — Philosophy — Philosophy of Life — Money Doesn’t Always Buy Happiness

Money Doesn't Always Buy Happiness

• Categories: Money and Class in America Philosophy of Life Social Justice

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Published: Mar 16, 2024

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The relationship between money and happiness, the limits of wealth, alternative paths to happiness.

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Does More Money Really Make Us More Happy?

• Elizabeth Dunn
• Chris Courtney

A big paycheck won’t necessarily bring you joy

Although some studies show that wealthier people tend to be happier, prioritizing money over time can actually have the opposite effect.

• But even having just a little bit of extra cash in your savings account ($500), can increase your life satisfaction. So how can you keep more cash on hand?
• Ask yourself: What do I buy that isn’t essential for my survival? Is the expense genuinely contributing to my happiness? If the answer to the second question is no, try taking a break from those expenses.
• Other research shows there are specific ways to spend your money to promote happiness, such as spending on experiences, buying time, and investing in others.
• Spending choices that promote happiness are also dependent on individual personalities, and future research may provide more individualized advice to help you get the most happiness from your money.

How often have you willingly sacrificed your free time to make more money? You’re not alone. But new research suggests that prioritizing money over time may actually undermine our happiness.

• ED Elizabeth Dunn is a professor of psychology at the University of British Columbia and Chief Science Officer of Happy Money, a financial technology company with a mission to help borrowers become savers. She is also co-author of “ Happy Money: The Science of Happier Spending ” with Dr. Michael Norton. Her TED2019 talk on money and happiness was selected as one of the top 10 talks of the year by TED.
• CC Chris Courtney is the VP of Science at Happy Money. He utilizes his background in cognitive neuroscience, human-computer interaction, and machine learning to drive personalization and engagement in products designed to empower people to take control of their financial lives. His team is focused on creating innovative ways to provide more inclusionary financial services, while building tools to promote financial and psychological well-being and success.

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Essay on Money Is Important for Happiness

Students are often asked to write an essay on Money Is Important for Happiness in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.

Let’s take a look…

100 Words Essay on Money Is Important for Happiness

Introduction.

Money is often linked to happiness. Having enough money can bring joy as it helps meet our needs and desires.

The Role of Money

Money is vital for survival. It buys food, clothes, and shelter, which are basic human needs. Without money, life becomes challenging.

Money and Freedom

Money offers freedom. It allows us to travel, explore new things, and have unique experiences, all of which can make us happy.

Money and Security

Money provides security. Knowing we have enough money to handle emergencies gives peace of mind, contributing to happiness.

250 Words Essay on Money Is Important for Happiness

The essential role of money in achieving happiness.

Money, often portrayed as a villain, is in fact a crucial element in the pursuit of happiness. While it is not the sole determinant, it undeniably contributes significantly to our overall well-being.

Money as a Means to Meet Basic Needs

Firstly, money is essential in fulfilling our basic needs such as food, shelter, and clothing. These necessities form the foundation of Maslow’s hierarchy of needs, a psychological theory that posits the fulfillment of basic needs as a prerequisite to achieving happiness. Without money, the struggle to meet these needs can lead to stress and unhappiness.

The Freedom and Opportunities Money Provides

Secondly, money affords us freedom and opportunities. It provides the means to pursue hobbies, travel, and explore new cultures, all of which can enrich our lives and increase our happiness. Moreover, money can also enable us to pursue further education or start a business, thereby fostering personal growth and satisfaction.

Money’s Role in Alleviating Suffering

Lastly, money can help alleviate suffering. It can provide access to quality healthcare, allowing us to maintain good health and longevity. It also enables us to help others, either through charitable donations or supporting loved ones, which can bring immense joy and fulfillment.

In conclusion, while money cannot buy happiness outright, it plays a pivotal role in creating conditions conducive to happiness. Recognizing this can help us approach money with a healthier mindset, seeing it not as an end in itself, but as a tool for achieving a happier and more fulfilling life.

500 Words Essay on Money Is Important for Happiness

The necessity of money for basic needs.

To begin with, money is necessary for meeting basic human needs, which include food, shelter, and clothing. Without money, it would be challenging to fulfill these needs, leading to a life of hardship and, consequently, unhappiness. Maslow’s hierarchy of needs supports this perspective, placing physiological needs at the base of the pyramid, which are essential for survival and can only be met through financial means.

Money as a Means to Improve Quality of Life

Beyond basic necessities, money also allows individuals to improve their quality of life. It provides access to better healthcare, education, and opportunities for self-improvement and growth. These elements contribute significantly to one’s overall happiness. Moreover, money can be used to acquire experiences that bring joy, such as travel, hobbies, or spending time with loved ones.

Financial Security and Mental Peace

The limitations of money in achieving happiness.

While the importance of money for happiness is evident, it is essential to recognize its limitations. Research suggests that beyond a certain income level, additional money does not significantly increase happiness. This is known as the ‘Easterlin Paradox.’ Furthermore, an excessive focus on money can lead to materialism, which can negatively impact relationships and personal satisfaction.

In conclusion, money plays a crucial role in facilitating happiness by meeting basic needs, improving quality of life, and providing financial security. However, it is not the only determinant of happiness, and its pursuit should be balanced with other aspects of life, such as relationships, passions, and personal growth. Therefore, while money is important for happiness, it is not the sole ingredient and should be viewed as a tool to achieve happiness rather than the end goal.

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Can Money Really Buy Happiness?

Money and happiness are related—but not in the way you think..

Updated November 10, 2023 | Reviewed by Chloe Williams

• More money is linked to increased happiness, some research shows.
• People who won the lottery have greater life satisfaction, even years later.
• Wealth is not associated with happiness globally; non-material things are more likely to predict wellbeing.
• Money, in and of itself, cannot buy happiness, but it can provide a means to the things we value in life.

Money is a big part of our lives, our identities, and perhaps our well-being. Sometimes, it can feel like your happiness hinges on how much cash is in your bank account. Have you ever thought to yourself, “If only I could increase my salary by 12 percent, I’d feel better”? How about, “I wish I had an inheritance. How easier life would be!” I don’t blame you — I’ve had the same thoughts many times.

But what does psychological research say about the age-old question: Can money really buy happiness? Let’s take a brutally honest exploration of how money and happiness are (and aren’t) related. (Spoiler alert: I’ve got bad news, good news, and lots of caveats.)

Higher earners are generally happier

Over 10 years ago, a study based on Gallup Poll data on 1,000 people made a big headline in the news. It found that people with higher incomes report being happier... but only up to an annual income of $75,000 (equivalent to about $90,000 today). After this point, a high emotional well-being wasn’t directly correlated to more money. This seemed to show that once a persons’ basic (and some “advanced”) needs are comfortably met, more money isn’t necessary for well-being.

But a new 2021 study of over one million participants found that there’s no such thing as an inflection point where more money doesn’t equal more happiness, at least not up to an annual salary of $500,000. In this study, participants’ well-being was measured in more detail. Instead of being asked to remember how well they felt in the past week, month, or year, they were asked how they felt right now in the moment. And based on this real-time assessment, very high earners were feeling great.

Similarly, a Swedish study on lottery winners found that even after years, people who won the lottery had greater life satisfaction, mental health, and were more prepared to face misfortune like divorce , illness, and being alone than regular folks who didn’t win the lottery. It’s almost as if having a pile of money made those things less difficult to cope with for the winners.

Evaluative vs. experienced well-being

At this point, it's important to suss out what researchers actually mean by "happiness." There are two major types of well-being psychologists measure: evaluative and experienced. Evaluative well-being refers to your answer to, “How do you think your life is going?” It’s what you think about your life. Experienced well-being, however, is your answer to, “What emotions are you feeling from day to day, and in what proportions?” It is your actual experience of positive and negative emotions.

In both of these studies — the one that found the happiness curve to flatten after $75,000 and the one that didn't — the researchers were focusing on experienced well-being. That means there's a disagreement in the research about whether day-to-day experiences of positive emotions really increase with higher and higher incomes, without limit. Which study is more accurate? Well, the 2021 study surveyed many more people, so it has the advantage of being more representative. However, there is a big caveat...

Material wealth is not associated with happiness everywhere in the world

If you’re not a very high earner, you may be feeling a bit irritated right now. How unfair that the rest of us can’t even comfort ourselves with the idea that millionaires must be sad in their giant mansions!

But not so fast.

Yes, in the large million-person study, experienced well-being (aka, happiness) did continually increase with higher income. But this study only included people in the United States. It wouldn't be a stretch to say that our culture is quite materialistic, more so than other countries, and income level plays a huge role in our lifestyle.

Another study of Mayan people in a poor, rural region of Yucatan, Mexico, did not find the level of wealth to be related to happiness, which the participants had high levels of overall. Separately, a Gallup World Poll study of people from many countries and cultures also found that, although higher income was associated with higher life evaluation, it was non-material things that predicted experienced well-being (e.g., learning, autonomy, respect, social support).

Earned wealth generates more happiness than inherited wealth

More good news: For those of us with really big dreams of “making it” and striking it rich through talent and hard work, know that the actual process of reaching your dream will not only bring you cash but also happiness. A study of ultra-rich millionaires (net worth of at least $8,000,000) found that those who earned their wealth through work and effort got more of a happiness boost from their money than those who inherited it. So keep dreaming big and reaching for your entrepreneurial goals … as long as you’re not sacrificing your actual well-being in the pursuit.

There are different types of happiness, and wealth is better for some than others

We’ve been talking about “happiness” as if it’s one big thing. But happiness actually has many different components and flavors. Think about all the positive emotions you’ve felt — can we break them down into more specifics? How about:

• Contentment
• Gratefulness

...and that's just a short list.

It turns out that wealth may be associated with some of these categories of “happiness,” specifically self-focused positive emotions such as pride and contentment, whereas less wealthy people have more other-focused positive emotions like love and compassion.

In fact, in the Swedish lottery winners study, people’s feelings about their social well-being (with friends, family, neighbors, and society) were no different between lottery winners and regular people.

Money is a means to the things we value, not happiness itself

One major difference between lottery winners and non-winners, it turns out, is that lottery winners have more spare time. This is the thing that really makes me envious , and I would hypothesize that this is the main reason why lottery winners are more satisfied with their life.

Consider this simply: If we had the financial security to spend time on things we enjoy and value, instead of feeling pressured to generate income all the time, why wouldn’t we be happier?

This is good news. It’s a reminder that money, in and of itself, cannot literally buy happiness. It can buy time and peace of mind. It can buy security and aesthetic experiences, and the ability to be generous to your family and friends. It makes room for other things that are important in life.

In fact, the researchers in that lottery winner study used statistical approaches to benchmark how much happiness winning $100,000 brings in the short-term (less than one year) and long-term (more than five years) compared to other major life events. For better or worse, getting married and having a baby each give a bigger short-term happiness boost than winning money, but in the long run, all three of these events have the same impact.

What does this mean? We make of our wealth and our life what we will. This is especially true for the vast majority of the world made up of people struggling to meet basic needs and to rise out of insecurity. We’ve learned that being rich can boost your life satisfaction and make it easier to have positive emotions, so it’s certainly worth your effort to set goals, work hard, and move towards financial health.

But getting rich is not the only way to be happy. You can still earn health, compassion, community, love, pride, connectedness, and so much more, even if you don’t have a lot of zeros in your bank account. After all, the original definition of “wealth” referred to a person’s holistic wellness in life, which means we all have the potential to be wealthy... in body, mind, and soul.

Kahneman, D., & Deaton, A.. High income improves evaluation of life but not emotional well-being. . Proceedings of the national academy of sciences. 2010.

Killingsworth, M. A. . Experienced well-being rises with income, even above $75,000 per year .. Proceedings of the National Academy of Sciences. 2021.

Lindqvist, E., Östling, R., & Cesarini, D. . Long-run effects of lottery wealth on psychological well-being. . The Review of Economic Studies. 2020.

Guardiola, J., González‐Gómez, F., García‐Rubio, M. A., & Lendechy‐Grajales, Á.. Does higher income equal higher levels of happiness in every society? The case of the Mayan people. . International Journal of Social Welfare. 2013.

Diener, E., Ng, W., Harter, J., & Arora, R. . Wealth and happiness across the world: material prosperity predicts life evaluation, whereas psychosocial prosperity predicts positive feeling. . Journal of personality and social psychology. 2010.

Donnelly, G. E., Zheng, T., Haisley, E., & Norton, M. I.. The amount and source of millionaires’ wealth (moderately) predict their happiness . . Personality and Social Psychology Bulletin. 2018.

Piff, P. K., & Moskowitz, J. P. . Wealth, poverty, and happiness: Social class is differentially associated with positive emotions.. Emotion. 2018.

Jade Wu, Ph.D., is a clinical health psychologist and host of the Savvy Psychologist podcast. She specializes in helping those with sleep problems and anxiety disorders.

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Money and Happiness in Poor and Wealthy Societies Essay

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Introduction

Positive correlation between happiness and money, insignificant correlation between happiness and money, works cited.

Many societies believe that money does not buy happiness. However, others affirm the contrary belief by saying that income levels affect people’s happiness. Before delving into the details of these perceptions, it is important to understand that happiness is an emotional or mental state where people experience more positive than negative feelings. These feelings outline how people interact with different stimuli, such as income, to influence their happiness.

People experience different emotional effects through such stimuli. The positive and negative effect refers to the effects that varying income levels have on people’s feelings and emotions. In detail, a positive effect refers to the extent that a person experiences positive moods (such as joy and interest), while negative affect refers to negative emotions (such as anxiety, sadness, and depression) that most people experience from varying income levels.

Using the above definitions, happiness, and emotional outcomes, Kesebir and Diener (117) say unsurprisingly different researchers have investigated the relationship between happiness and money. Indeed, many societies believe that life is not about (merely) living, but living a fulfilling and happy life (quality life). This realization has caused many philosophers to explore different ways of rising above the mere existence of life to a more fulfilling purpose of living.

Comprehending the motivations for pursuing money and happiness is the key to understanding this correlation. In this paper, I argue that wealthy and poor societies have different relationships between money and happiness. In detail, after exploring different types of correlation between the two variables, I explain that the relationship between both variables is strong in low-income societies, but it gradually weakens as income increases (especially in wealthy societies). Based on this understanding, money affects happiness to a limited extent. Indeed, beyond the satisfaction of basic human needs, other non-monetary factors, such as social relationships, have a more significant correlation with happiness than money does.

The positive correlation between money and happiness mainly exists in low-income societies. The utilitarian philosophies of the modern era affirm this relationship (Kesebir and Diener 117). However, their influences stem from common beliefs in the 19 th century (and beyond), which equaled happiness to utility (utility refers to the ability of material possessions to satisfy human needs and wants). Using the relationship between happiness and utility, many medieval societies believed the latter was equal to human pleasure (Kesebir and Diener 117). Jeremy Bentham and Aristotle (among other philosophers) supported this view by saying that most people should strive to experience more pleasure than pain (as a measure of their happiness) (Kesebir and Diener 117). They also argued that different societies should use this basis for understanding morality and legislation (Kesebir and Diener 117).

As many societies embraced this idea, the medieval conception of happiness, as a function of virtue and perfection, disappeared (Kesebir and Diener 117). People started to see material possessions as more important than gaining respect from society (by practicing good morals and virtues). Similarly, this ideological shift made it uncommon for many people to focus on issues of human well-being (human well-being closely associates with happiness because it refers to a state of health or prosperity) (Kesebir and Diener 117). Therefore, their focus shifted to material possessions as a measure of happiness.

In line with the above argument, Aristotle argued that wealth was an important requirement for happiness. Easterlin (3) shared the same view by explaining America’s perception of happiness. He said many US citizens perceived happiness through “material” lenses. The Easterlin (3) paradox summed this view by showing that income had a direct correlation with happiness. It based this argument on several cross-national studies, which showed that rich people were happier than poor people were. For example, in a 1970 American study, Easterlin (4) found out that less than one-quarter of low-income people believed they were “happy” people.

Comparatively, about double this number of respondents (in the high-income group) said they were happy. The same findings appeared in more than 30 similar researches conducted in other parts of the world. Although the same study established a correlation between happiness and education, health, and family relationships, income emerged as having the strongest and most consistent relationship with happiness (Easterlin 4).

Although Easterlin (3) used the above findings to support the correlation between income and happiness, he said increasing everybody’s income weakened the correlation between both variables. Therefore, income variations affected people’s perceptions of happiness (people always judge their happiness based on what their peers think of them). Lane (57) supported these views when he said that most people often adjusted to a new standard of measuring their happiness whenever they increased their income levels (the desire for money tapers off as income increases). Using this analogy, Easterlin (5) believed that wealthy nations were no happier than poor nations. Based on the same logic, he said that people’s subjective perceptions of happiness depended on their welfare perceptions (Easterlin 5).

Therefore, as opposed to perceiving their happiness through “material” lenses, they did so by understanding how it compared to their social norms. Consequently, people who are above the “norm” feel happier than those who are below it (how people perceive the social norm depends on the economic well-being of the society).

Although Easterlin (5) argued that happiness was subjective to the national income (as shown above), researchers who have conducted studies that are more recently told that the correlation between happiness and well-being was stronger than his paradox showed. Consequently, they revised this model by saying that increased national income affected the overall sense of individual well-being in a country. Unlike the data relied on Easterlin (4), researchers established the above fact, using findings that are more reliable. For example, Lane (56) quoted the findings of a 1976 transnational study, which showed that a nation’s poverty index affected the well-being of its citizens (such as people’s attitudes, feelings, and perceptions). These studies showed that personal satisfaction increased with increased levels of economic development (money “bought” happiness).

Money has an insignificant correlation with happiness in wealthy societies. This is an old view of this relationship because philosophers from ancient Greece started exploring this insignificant correlation in 370 BC (Kesebir and Diener 118). They said material wealth had an indirect correlation with happiness. Based on this understanding, they believed that a man’s mind defined his level of happiness. Similarly, they believed it was difficult for people to be happy if they lacked morals and virtues (money was not a priority). Democritus and Epicurus (two ancient Greek philosophers) mainly advanced this view (Kesebir and Diener 118).

Similarly, other ancient Greek philosophers, such as Socrates and his student, Plato, refuted the claim that happiness depended on the “enjoyment” of beautiful and good things. They believed that all people needed to show prudence and honor to be happy (Kesebir and Diener 118). Lane (56) has also reported the same findings after analyzing the relationship between money and happiness in a contextual approach. Like, Easterlin (3), he said in many developed countries, money did not increase happiness levels. Frank Andrews and Stephen Withey (cited in Lane 58) also supported these findings when they said that different socioeconomic groups showed small differences in people’s well-being. They also said that income levels had an insignificant impact on life as a whole.

The above findings show the different correlations between income and happiness. However, I believe this limited correlation mainly emerges in wealthy societies, as opposed to low-income societies. For example, non-monetary issues have a strong correlation with happiness in wealthy societies. Economists also affirm this fact through the Maslow hierarchy of needs because they say people crave for higher-level needs, such as love, social relationships, and recognition after they have met their primary needs such as food, shelter, sex, and clothing. Since many people in wealthy societies do not struggle to meet basic human needs, the insignificant correlation between happiness and money applies to this group of people.

Some philosophers maintain a “middle ground” by supporting the limited influence of money on happiness. Epicureans also supported this view because they said wealth was important to people’s happiness, to the extent that it gave people their basic needs, like shelter and clothing (Kesebir and Diener 118). However, beyond this threshold, it had an insignificant relationship with happiness. This analysis affirms the different correlations between happiness and income across poor and wealthy nations. Indeed, Kesebir and Diener 117) say there is a strong correlation between happiness and income in low-income countries, while wealthy economies experience an insignificant correlation between the two variables. A comparative study conducted in America revealed that the wealthiest Americans (profiled in Forbes) were only modestly happier than middle-income and low-income control groups that lived with them in the same location (Lane 58).

Based on the above analysis, income is not the only variable that affects happiness. Non-monetary issues affect happiness too. Lane (58) supports this argument by highlighting the need to distinguish individual pleasures from human well-being issues. Individual pleasures may depend on income, but people’s well-being is subjective. Therefore, besides income, other factors affect people’s happiness. To support this view, Lane (58) cited a 1982 study (conducted by Gallup), which asked Americans what made them happy (Lane 58). The respondents said family relationships made them happier than money did. Other things that made them happy included television, friends, reading books (and other pleasures) that most people from low-income families could afford (Lane 57).

Therefore, income does not solely define happiness. This analysis shows that although most people need to have adequate money to be happy, money, in isolation, is not sufficient to guarantee happiness, beyond providing basic needs. In the book, Happy People , Jonathan Freedman (cited in Lane 57) affirmed the above fact by saying that rich and poor people have different perceptions of the role of wealth in increasing people’s happiness levels. Overall, while many rich people understand that wealth does not automatically guarantee happiness, people from low-income societies believe it does. This was similarly true for their perceptions of well-being. Therefore, when a person is extremely poor, money looks like a “savior” of some sort, but as income increases, this idea disappears. This analogy has stronger merit than the general perception that money “buys” happiness. Indeed, not all happy people are rich. In this regard, many human societies have focused so much on material wealth that they have forgotten. It does not guarantee happiness.

After weighing the findings of this paper, easily, a person could affirm an indirect relationship between happiness and income. Some researchers say money has a direct relationship with happiness, while others do not affirm this relationship. This inconsistency stems from the contextual appeal of income and wealth to human societies. For example, income has a weak correlation with happiness in wealthy societies. However, this relationship is stronger in low-income societies. Evidence also shows that there was a weak correlation between income and happiness in medieval societies because many people believed adhering to human virtues made people happy (this was the medieval standard for happiness).

However, the modern era changed this perception and shifted the societal focus from virtues and morals to material wealth. Now, people attach more value to income and similar “material” factors. However, as changes to the Easterlin (3) paradox suggest, wealth increases happiness to a limited extent. Overall, this paper shows that income and happiness have a “contextual” relationship. For example, if there is a broad increase in income across a nation, this correlation weakens (the Easterlin (3) paradox mainly supports this view); however, as income levels decrease, the correlation strengthens. Consequently, there is a strong correlation between money and happiness in low-income societies. In wealthy societies, non-monetary factors like health and the quality of family relationships have a stronger impact on happiness than money does.

Easterlin, Richard. “Does Money Buy Happiness?” Public Interest 30.3 (1973): 3-10. Print.

Kesebir, Pelin and Ed Deiner. “In pursuit of happiness: Empirical Answers to Philosophical Questions.” Perspectives on Psychological Science 3.2 (2008): 117-123. Print.

Lane, Robert. “Does Money buy Happiness?” Public Interest 113.3 (1993): 56-65. Print.

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IvyPanda. (2020, May 26). Money and Happiness in Poor and Wealthy Societies. https://ivypanda.com/essays/money-and-happiness-in-poor-and-wealthy-societies/

"Money and Happiness in Poor and Wealthy Societies." IvyPanda , 26 May 2020, ivypanda.com/essays/money-and-happiness-in-poor-and-wealthy-societies/.

IvyPanda . (2020) 'Money and Happiness in Poor and Wealthy Societies'. 26 May.

IvyPanda . 2020. "Money and Happiness in Poor and Wealthy Societies." May 26, 2020. https://ivypanda.com/essays/money-and-happiness-in-poor-and-wealthy-societies/.

1. IvyPanda . "Money and Happiness in Poor and Wealthy Societies." May 26, 2020. https://ivypanda.com/essays/money-and-happiness-in-poor-and-wealthy-societies/.

Bibliography

IvyPanda . "Money and Happiness in Poor and Wealthy Societies." May 26, 2020. https://ivypanda.com/essays/money-and-happiness-in-poor-and-wealthy-societies/.

Band 6+: Some people believe that money is the key to happiness, while others think that other factors are more important. Discuss both views and give your own opinion.

Many people affirm that there is no happiness in life without money, whereas others believe that money is not the only factor contributing to human’s happiness but there are more imperative factors . This essay will discuss both views before my own opinion is voiced.

On the one hand, money guarantees people’s daily basic demand and life’s comfort.Money enables humans to meet basic needs such as food, shelter and healthcare. When these needs are met, human’s life becomes more comfortable and safer, and money comes to be a solid foundation of life. For instance, when people are financially stable, they are able to afford nutritious food, a luxury home,and quality healthcare. Hence, by having financially stable, individuals experience a good and secure life, which collectively contribute to their overall well-being and happiness. Additionally, money fosters a conducive environment for outside connections and self-confidence. Individuals tend to pay and participate in more social activities, engaging with a diverse group of people. They are confident enough that when they are financially stable, they can receive the respect from others. As a result, money gives them happiness created by social activities and their own confidence by financial success.

On the other hand, one’s own euphoria can be attributed to other factors in life such as intimate relationships. Strong relationships provide emotional support and a sense of unity, which build a relationship network in order to reduce stress from work and bring genuine happiness. For example, a research from Harvard Study of Adult Development dedicated those who maintain a good connection with family often have a healthier and happier life. Thus, even if money can help meet basic needs, strong emotional relationships may be another vital factor of human’s well-being.

Furthermore, people who pursue their passion tend to obtain more happiness and effectively diminish stress than those who just diligently pursue wealth but neglect their genuine life purpose. Chasing one’s passion often brings a sense of achievement and self-satisfaction because individuals conceive that they are living according to their personal values and goals, which collectively lead to self-fulfillment and inner happiness. Money can execute material needs and comfort, it cannot substitute for the profound sense of gratification that arises from embarking on the path of one’s passions

In conclusion, I believe both views have their merits. I maintain a tempered perspective on the matter. Ultimately, a balanced approach that incorporates both financial security and personal fulfillment is essential for a well-rounded and satisfying life.

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More Proof That Money Can Buy Happiness (or a Life with Less Stress)

When we wonder whether money can buy happiness, we may consider the luxuries it provides, like expensive dinners and lavish vacations. But cash is key in another important way: It helps people avoid many of the day-to-day hassles that cause stress, new research shows.

Money can provide calm and control, allowing us to buy our way out of unforeseen bumps in the road, whether it’s a small nuisance, like dodging a rainstorm by ordering up an Uber, or a bigger worry, like handling an unexpected hospital bill, says Harvard Business School professor Jon Jachimowicz.

“If we only focus on the happiness that money can bring, I think we are missing something,” says Jachimowicz, an assistant professor of business administration in the Organizational Behavior Unit at HBS. “We also need to think about all of the worries that it can free us from.”

The idea that money can reduce stress in everyday life and make people happier impacts not only the poor, but also more affluent Americans living at the edge of their means in a bumpy economy. Indeed, in 2019, one in every four Americans faced financial scarcity, according to the Board of Governors of the Federal Reserve System. The findings are particularly important now, as inflation eats into the ability of many Americans to afford basic necessities like food and gas, and COVID-19 continues to disrupt the job market.

Buying less stress

The inspiration for researching how money alleviates hardships came from advice that Jachimowicz’s father gave him. After years of living as a struggling graduate student, Jachimowicz received his appointment at HBS and the financial stability that came with it.

“My father said to me, ‘You are going to have to learn how to spend money to fix problems.’” The idea stuck with Jachimowicz, causing him to think differently about even the everyday misfortunes that we all face.

To test the relationship between cash and life satisfaction, Jachimowicz and his colleagues from the University of Southern California, Groningen University, and Columbia Business School conducted a series of experiments, which are outlined in a forthcoming paper in the journal Social Psychological and Personality Science , The Sharp Spikes of Poverty: Financial Scarcity Is Related to Higher Levels of Distress Intensity in Daily Life .

Higher income amounts to lower stress

In one study, 522 participants kept a diary for 30 days, tracking daily events and their emotional responses to them. Participants’ incomes in the previous year ranged from less than $10,000 to $150,000 or more. They found:

• Money reduces intense stress: There was no significant difference in how often the participants experienced distressing events—no matter their income, they recorded a similar number of daily frustrations. But those with higher incomes experienced less negative intensity from those events.
• More money brings greater control : Those with higher incomes felt they had more control over negative events and that control reduced their stress. People with ample incomes felt more agency to deal with whatever hassles may arise.
• Higher incomes lead to higher life satisfaction: People with higher incomes were generally more satisfied with their lives.

“It’s not that rich people don’t have problems,” Jachimowicz says, “but having money allows you to fix problems and resolve them more quickly.”

Why cash matters

In another study, researchers presented about 400 participants with daily dilemmas, like finding time to cook meals, getting around in an area with poor public transportation, or working from home among children in tight spaces. They then asked how participants would solve the problem, either using cash to resolve it, or asking friends and family for assistance. The results showed:

• People lean on family and friends regardless of income: Jachimowicz and his colleagues found that there was no difference in how often people suggested turning to friends and family for help—for example, by asking a friend for a ride or asking a family member to help with childcare or dinner.
• Cash is the answer for people with money: The higher a person’s income, however, the more likely they were to suggest money as a solution to a hassle, for example, by calling an Uber or ordering takeout.

While such results might be expected, Jachimowicz says, people may not consider the extent to which the daily hassles we all face create more stress for cash-strapped individuals—or the way a lack of cash may tax social relationships if people are always asking family and friends for help, rather than using their own money to solve a problem.

“The question is, when problems come your way, to what extent do you feel like you can deal with them, that you can walk through life and know everything is going to be OK,” Jachimowicz says.

Breaking the ‘shame spiral’

In another recent paper , Jachimowicz and colleagues found that people experiencing financial difficulties experience shame, which leads them to avoid dealing with their problems and often makes them worse. Such “shame spirals” stem from a perception that people are to blame for their own lack of money, rather than external environmental and societal factors, the research team says.

“We have normalized this idea that when you are poor, it’s your fault and so you should be ashamed of it,” Jachimowicz says. “At the same time, we’ve structured society in a way that makes it really hard on people who are poor.”

For example, Jachimowicz says, public transportation is often inaccessible and expensive, which affects people who can’t afford cars, and tardy policies at work often penalize people on the lowest end of the pay scale. Changing those deeply-engrained structures—and the way many of us think about financial difficulties—is crucial.

After all, society as a whole may feel the ripple effects of the financial hardships some people face, since financial strain is linked with lower job performance, problems with long-term decision-making, and difficulty with meaningful relationships, the research says. Ultimately, Jachimowicz hopes his work can prompt thinking about systemic change.

“People who are poor should feel like they have some control over their lives, too. Why is that a luxury we only afford to rich people?” Jachimowicz says. “We have to structure organizations and institutions to empower everyone.”

[Image: iStockphoto/mihtiander]

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Does Money Buy Happiness? Here’s What the Research Says

March 28, 2023 • 5 min read.

Reconciling previously contradictory results, researchers from Wharton and Princeton find a steady association between larger incomes and greater happiness for most people but a rise and plateau for an unhappy minority.

• Finance & Accounting

The following article was originally published on Penn Today .

Does money buy happiness? Though it seems like a straightforward question, research had previously returned contradictory findings, leaving uncertainty about its answer.

Foundational work published in 2010 from Princeton University’s  Daniel Kahneman  and Angus Deaton had found that day-to-day happiness rose as annual income increased, but above $75,000 it leveled off and happiness plateaued. In contrast, work published in 2021 from the University of Pennsylvania’s  Matthew Killingsworth  found that happiness rose steadily with income well beyond $75,000, without evidence of a plateau.

To reconcile the differences, Kahneman and Killingsworth paired up in what’s known as an adversarial collaboration, joining forces with Penn Integrates Knowledge  University Professor  Barbara Mellers  as arbiter. In a new  Proceedings of the National Academy of Sciences  paper , the trio shows that, on average, larger incomes are associated with ever-increasing levels of happiness. Zoom in, however, and the relationship becomes more complex, revealing that within that overall trend, an unhappy cohort in each income group shows a sharp rise in happiness up to $100,000 annually and then plateaus.

“In the simplest terms, this suggests that for most people larger incomes are associated with greater happiness,” says Killingsworth, a senior fellow at Wharton and lead paper author. “The exception is people who are financially well-off but unhappy. For instance, if you’re rich and miserable, more money won’t help. For everyone else, more money was associated with higher happiness to somewhat varying degrees.”

Mellers digs into this last notion, noting that emotional well-being and income aren’t connected by a single relationship. “The function differs for people with different levels of emotional well-being,” she says. Specifically, for the least happy group, happiness rises with income until $100,000, then shows no further increase as income grows. For those in the middle range of emotional well-being, happiness increases linearly with income, and for the happiest group the association actually accelerates above $100,000.

Joining Forces to Ask: “Does Money Buy Happiness?”

The researchers began this combined effort recognizing that their previous work had drawn different conclusions. Kahneman’s 2010 study showed a flattening pattern where Killingsworth’s 2021 study did not. As its name suggests, an adversarial collaboration of this type — a notion originated by Kahneman — aims to solve scientific disputes or disagreements by bringing together the differing parties, along with a third-party mediator.

Killingsworth, Kahneman, and Mellers focused on a new hypothesis that both a happy majority and an unhappy minority exist. For the former, they surmised, happiness keeps rising as more money comes in; the latter’s happiness improves as income rises but only up to a certain income threshold, after which it progresses no further.

To test this new hypothesis, they looked for the flattening pattern in data from Killingworth’s study, which he had collected through an app he created called Track Your Happiness. Several times a day, the app pings participants at random moments, asking a variety of questions including how they feel on a scale from “very good” to “very bad.” Taking an average of the person’s happiness and income, Killingsworth draws conclusions about how the two variables are linked.

A breakthrough in the new partnership came early on when the researchers realized that the 2010 data, which had revealed the happiness plateau, had actually been measuring unhappiness in particular rather than happiness in general.

“It’s easiest to understand with an example,” Killingsworth says. Imagine a cognitive test for dementia that most healthy people pass easily. While such a test could detect the presence and severity of cognitive dysfunction, it wouldn’t reveal much about general intelligence since most healthy people would receive the same perfect score.

“In the same way, the 2010 data showing a plateau in happiness had mostly perfect scores, so it tells us about the trend in the unhappy end of the happiness distribution, rather than the trend of happiness in general. Once you recognize that, the two seemingly contradictory findings aren’t necessarily incompatible,” Killingsworth says. “And what we found bore out that possibility in an incredibly beautiful way. When we looked at the happiness trend for unhappy people in the 2021 data, we found exactly the same pattern as was found in 2010; happiness rises relatively steeply with income and then plateaus.”

“The two findings that seemed utterly contradictory actually result from data that are amazingly consistent,” he says.

Does It Matter Whether Money Can Buy Happiness?

Drawing these conclusions would have been challenging had the two research teams not come together, says Mellers, who suggests there’s no better way than adversarial collaborations to resolve scientific conflict.

“This kind of collaboration requires far greater self-discipline and precision in thought than the standard procedure,” she says. “Collaborating with an adversary — or even a non-adversary — is not easy, but both parties are likelier to recognize the limits of their claims.” Indeed, that’s what happened, leading to a better understanding of the relationship between money and happiness.

And these findings have real-world implications, according to Killingsworth. For one, they could inform thinking about tax rates or how to compensate employees. And, of course, they matter to individuals as they navigate career choices or weigh a larger income against other priorities in life, Killingsworth says.

However, he adds that for emotional well-being money isn’t the be all end all. “Money is just one of the many determinants of happiness,” he says. “Money is not the secret to happiness, but it can probably help a bit.”

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