Does Money Make You Happy?
Can Money Buy Us Happiness?
Find something that makes you as happy as this guy playing ukulele in a meadow
Learning to live simple is one of the most important aspects of financial literacy. One of the richest men in the world, Warren Buffet, lives in the same house he bought decades ago. When you focus on being intentional with money, you start realizing that money is just a tool to help us get the things we want.
Money can't buy you happiness, but it can buy you time.
We all enjoy having 'things' but it's our experiences that make us feel rich. We are social beings. It's why 80% of our success has to do with our emotional intelligence rather than our intelligence quotient, or IQ.
“Emotional intelligence is a way of recognizing, understanding, and choosing how we think, feel, and act. It shapes our interactions with others and our understanding of ourselves. It defines how and what we learn; it allows us to set priorities; it determines the majority of our daily actions. Research suggests it is responsible for as much as 80 percent of the “success” in our lives.” - J. Freedman
Money Buys Happiness up to 75k
Money talk and soft skills don't usually come up in the same sentence, but the goal of all this finance talk is to lead to a lifestyle that makes you truly fulfilled. That means finding a profession or craft that you love while still having time to do what you want in life.
You probably know what makes you happy. If you don’t, it'd be a good idea to start finding out. The answer probably doesn't come to what you make but the lifestyle you want to live. Money just helps you get there.
Studies have shown that people find very little happiness after they've reached an income of 75k a year. Once you've reached that level of income in America, there is very little happiness to be gained from earning more money. If you can find a way to do what you love and earn more money that's awesome, but money alone won't bring more happines.
What the average American can take away from this is we shouldn't be blindly following a paycheck but rather find a way to live more intentionally.
In life, we all have the same paycheck, and that's time. Unlike finances, you can’t increase our time income. We are all dealt the same hand. Like our financial life, we have mandatory things that are required of us.
"Our happiness in life will be determined by how good we are at controlling our resources."
So we have many important decisions to make. Outside of the handful of things we absolutely have to pay for we have a great deal of flexibility to determine what we'll do with our spare time and money.
Now that we know money doesn't buy happiness after 75k, let's talk about what can.
Find Three Hobbies You Love...
One To Make You Money
Working for money is a necessity in life and brings a lot of value to people. When we work hard for our money it feels good and brings a sense of accomplishment to our lives. It may not always be fun, but usually the harder we work for our money, the more we appreciate what it gives us in return.
One To Keep You In Shape
Staying in shape is a big part of our overall wellness. It's hard to be happy in life if we've completely neglected ourselves physically. It's important to try to eat healthy and focus on our physical well being. I like to ride bikes, lift weights, run, and play soccer to stay in shape. Finding hobbies that keeps us in shape is crucial to our happiness.
And One To Be Creative
Money covers our basic needs, working out covers our physical needs, and being creative is how we can exercise our mind. Humans are problem solvers and we like to develop new creative ways of doing things. Their are so many ways to find a hobby that helps us grow intellectually. Whether it's writing a blog, taking photography lessons, or playing an instrument. Creativity is crucial to our personal growth and happiness.