Does money buy happiness?

How important is money to your overall wellbeing? And what role does money play in achieving happiness; can money actually buy you happiness?

According to the latest Australian Wellbeing Index Report, happiness comes from a fulfillment of physical, emotional, and mental needs. The ‘Golden triangle of happiness’ is supported by three essential pillars for life satisfaction and wellbeing and having good financial management makes up one of the three pillars:

1) Relationships: People are happier when they are in a close relationship with someone you can share your thoughts, dreams and fears with and provides a critical resource to defend against life’s challenges.

2) A Sense of Purpose: People are happier when they are active, particularly when that activity gives them a sense of purpose or responsibility. For some this may be their job, but the job has to provide more than just financial security. For others it may be a social activity such as being part of the local golf club. Or it may be volunteering, caring for someone or doing or something as simple gardening.

3) Financial Control: People are happier when they are in control of their finances. There is no denying that income and wellbeing are linked. The power of money affects wellbeing when in its capacity to alleviate stress and create an environment for happiness.

What money also provides you with is as a sense of security; studies have shown that people with money are able to live comfortably without worrying, are happier than those who don't, but it won't actually make you happy necessarily without having the other two pillars of relationships and sense of purpose in place. 


References:  Australian Unity Report: “What Makes us Happy?” Third Edition