Everyone has heard the phrase “money can’t buy happiness.” Some see it as wisdom while others see it as a rather privileged perspective. For many who live from paycheck to paycheck and suffer from stress over financial concerns, it seems as though money could go a long way towards mental wellness. But there have been many other accounts from people who have money that say it did nothing to improve their mental state.
Like most popular adages, there may be a kernel of truth, even if reality is more nuanced. So can money buy happiness? This is something positive psychologists have studied over the years. Here are their findings.
The Science of Money and Mental Wellness
Multiple studies over the years have shown a small but consistent impact between someone’s income and their mental wellness. This is not surprising. When we can afford to have our needs met, we obviously feel much less stressed. But a 2009 study from Harvard Business School found that most laypeople overestimated the satisfaction that higher income would bring.
They found that there is a limit to the amount of money that can buy happiness: up to about $75,000. After an annual income of $75,000, acquiring more money does not necessarily lead to happiness, though people often strive for more money in the hopes that it will.
Ways That Money DOES “Buy Happiness”
Wealth may not buy happiness, but having enough money to take care of yourself, your family, and still having a bit left over can in fact increase your mental wellness. Here are a few of the main reasons why:
Financial Stability
52% of adults in the United States claim that worries about money tend to negatively affect their mental health. When you live paycheck-to-paycheck, that can come with a lot of uncertainty. Will you be able to pay your rent? Will you be able to buy enough food for yourself and your kids? And what if an emergency happens? That financial instability can cause chronic stress and feelings of guilt or shame.
When you have enough money to meet your needs, the stress of where your next meal will come from is lifted. So is some of the shame that can accompany that stress. You can feel more confident that you’re not going to lose your home and that you won’t have to pinch pennies while buying groceries.
Rivia Mind’s own psychotherapy supervisor, Lorrell Berrios, LCSW, describes the impact of financial stability on mental health this way:
“Lack of money can have an impact on someone’s stress level and mental health. Therefore, money may bring happiness because it can create stability and emotional well-being in someone’s life. Some of the patients I have worked with have reported a significant increase in anxiety and depression symptoms when they are unable to meet their basic needs. For example, unable to pay their rent, buy food, commute to work and/or pay for their medications. People who possess financial stability can have more control of their lives and engage in coping strategies such as traveling, socializing, and/or enroll in activities of their choice.”
Access to Healthcare
Healthcare across the United States is expensive. It’s expensive to pay out of pocket, and it can be expensive to pay insurance premiums, as well. Many Americans avoid seeking out healthcare for both physical and mental ailments unless it is an emergency, choosing to tolerate the pain instead. When you have enough money to comfortably cover your healthcare needs, you can start to mitigate some of those vulnerability factors you have in your life — such as chronic pain, depression, anxiety, or ADHD.
Money To Spend On Hobbies and Passions
The financial goal for many people is not to become wealthy, but rather to pay their bills, get out of debt, and then have some disposable income left over. That disposable income can be used to enjoy their hobbies and follow their passions — like art, traveling, rock climbing, going to the theater, or getting an occasional coffee or lunch with friends. These things can all enrich your life, but often require money to do so.
Opportunities To Give Back
When your needs are taken care of, you can donate to causes and establishments that you feel strongly about. You can help out a friend when they’re in need. This can give you a sense of satisfaction, a sense that you have power to make positive change. Numerous studies have shown that giving makes people happier, especially when they are able to freely give to a cause of their choosing.
Ways Money DOES NOT Buy Happiness
On the other hand, there are certain things that money can’t do — especially if you’ve already reached a point of financial security but continue to seek happiness from money. There is nothing wrong with aspiring to a certain level of income or luxury. But it’s important not to fix your idea of happiness on that goal. Money has its limits when it comes to mental wellness, including:
Fulfillment
This is not to say that there are no ways that money can open up opportunities for fulfillment. Money might allow you to buy your dream home, to travel to all the places you want to see, or to follow your passion. But money does not guarantee fulfillment. You could have a job that pays six or seven figures but makes you completely miserable. It may require you to live in one place when you would rather move somewhere else.
Money cannot fill a void in your life that makes you feel that you are exactly where you want to be. At best, it can open up opportunities.
Relationships and Social Needs
Human beings crave connection. No matter how much money you have, you will still need to connect with other people. And having money, aside from allowing you to do things like take your friends out to dinner or help them when they need financial assistance, does not make you more friends. In fact, if you find yourself working long hours to earn a higher income, you may not have as much time to dedicate to those close relationships. It’s important to balance work and life, even if that means you won’t maximize your paycheck.
Peace of Mind
Many people believe that if they were wealthier, they wouldn’t have to worry about money. This is not actually true. The more money you have, the more you have to protect yourself against frauds and scams. You may need to hire financial advisors to help you invest your money wisely or manage new issues with your taxes. This is a different sort of stress than the stress of not knowing if you can pay your bills; however, having more money does not make stress about money disappear.
At Rivia Mind, we work with our clients to achieve whole person wellness. We have a staff full of educated, skilled, and compassionate mental health providers who are here to help you. Contact us today to learn more or to schedule a consultation.
