Research Discovers The Link Between Money And Happiness

They say money can't buy happiness, but that may not be entirely accurate, if the latest
research into the subject is to be trusted. Researchers have found that there is definitely
a link between happiness and wealth, but it's not simply a matter of having enough money.
Happiness can only be achieved with financial stability, suggesting it's more a matter of
what your money can buy than how much of it you possess.

Making More Money Won't Matter if You're Overworked

Christian Bayer, a mathematical economist, conducted a recent study along with partner
Falko Juessen on the subject of wealth versus happiness. Published in the American
Economic Journal: Macroeconomics, the research project found that the financial stability
that typically comes along with wealth is what instills happiness in individuals. The prospect
of advancing one's position and achieving more economic stability is what gives people a
sense of fulfillment.

Conversely, people who take on extra hours may be making extra money, receiving the
added bonus of overtime pay, but they generally won't be any happier. The study found
that working extra made the subjects more tired and worn out. Even though they're making
more money, they don't have time to enjoy it. In addition, the fact that they have to work
extra hours just to maintain that level of income reminds people that their situation could
change at any moment.

Australian Unity Backs Up Claims That 

Financial Stability is Linked to Happiness

In releasing their 2015 Wellbeing of Australians Report, Australian Unity looked at a
number of factors that help people feel more fulfilled and satisfied with their lives.
One major aspect is money and how it affects the general wellbeing of an individual.
First, the study noted that $100,000 seems to be a benchmark of sorts. People making
under that sum noted a more significant link between money and happiness, while
those who earn in the six-digits actually feel less controlled in terms of financial stability.

The key point noted in the study that control over one's financial situation was directly
linked to a general sense of wellbeing. It wasn't just enough to earn a good income,
however. The study also found that people had to feel fulfilled by their work. A sense of
purpose is just as important as financial stability in terms of having a positive feeling
of wellbeing.

Don't Sweat the Big Stuff

If you're constantly surfing the web in search of cheap insurance quotes, you're likely
unhappy, concluded another study. In a study of the mental health of women in today's
society, a Princeton University research group discovered that, in addition to financial
stability, job security and life's major financial challenges could inhibit happiness. First,
the study concluded that job security is just as important as financial stability. If you face
a concern that you may lose your job, financial stability won't matter. The stress caused
by this train of thought kept even the most successful women from enjoying their success.

Additionally, obsessing over health insurance, student loans, and retirement savings can
affect one's overall happiness. The study found that women who didn't worry about these
things lived happier and less stressful lives. One subject, responding to a survey during
the study, pointed out that it's not about greed and wanting it all. She explained that,
whether one owns a mansion or a mobile home, the fear that it will be taken away is the
same. This is the basis of the fears that have been explored in all three studies.

When taken literally, the idea that money can't buy happiness may prove true, but only to
a certain extent. It's the stability and sense of confidence that the accumulation of money
provides that helps people feel happy and fulfilled in their lives. The concern that they can
lose their homes or their cars creates a fear that success and financial wellbeing can
alleviate. In that way, money does buy happiness.