argumentative essay of can money buy happiness

• SUGGESTED TOPICS
• The Magazine
• Newsletters
• Managing Yourself
• Managing Teams
• Work-life Balance
• The Big Idea
• Data & Visuals
• Case Selections
• HBR Learning
• Topic Feeds
• Account Settings
• Email Preferences

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.

Partner Center

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]

Related reading from the Working Knowledge Archives

Selling Out The American Dream

• 25 Jun 2024
• Research & Ideas

Rapport: The Hidden Advantage That Women Managers Bring to Teams

• 11 Jun 2024
• In Practice

The Harvard Business School Faculty Summer Reader 2024

How transparency sped innovation in a $13 billion wireless sector.

• 24 Jan 2024

Why Boeing’s Problems with the 737 MAX Began More Than 25 Years Ago

• 27 Jun 2016

These Management Practices, Like Certain Technologies, Boost Company Performance

• Social Psychology

Sign up for our weekly newsletter

• Bipolar Disorder
• Therapy Center
• When To See a Therapist
• Types of Therapy
• Best Online Therapy
• Best Couples Therapy
• Managing Stress
• Sleep and Dreaming
• Understanding Emotions
• Self-Improvement
• Healthy Relationships
• Student Resources
• Personality Types
• Sweepstakes
• Guided Meditations
• Verywell Mind Insights
• 2024 Verywell Mind 25
• Mental Health in the Classroom
• Editorial Process
• Meet Our Review Board
• Crisis Support

Does More Money Make You Happier? Yes, But It's Complicated

Research says it can help, but there are a few caveats...

Verywell Mind / Getty Images

Why We Think Money Might Buy Happiness

The relationship between money and happiness.

• Limitations
• The Role Money Plays
• Finding Happiness Beyond Money

We've all heard the phrase: “Money can't buy happiness.” But how true is this, exactly? Growing up poor in rural Idaho, I often took comfort in this idea, reassuring myself that those with more money weren't necessarily any happier than I was. But sometimes I wondered: Am I just fooling myself?

Of course, money can't replace the deep joy and meaning we find in relationships and experiences. But there's no denying that financial security feels pretty darn good.

“Money can bring about happiness or a sense of satisfaction that can feel like happiness because it allows security and reduces constant financial anxiety and fear,” explains Sarah Whitmire , LPC-S, ATR-BC, a licensed professional counselor and founder of Whitmire Counseling and Supervision.

A Look Ahead

Many mental health experts will point out that money alone is no guarantee of happiness. Other factors like relationships, purpose, and personal growth have a more powerful impact. 

But money does have some effect on happiness. How much? Keep reading on to learn more about this connection and whether a few extra dollars in your wallet truly translates to a joyful heart or if the key to happiness is something money can't buy.

When you think of happiness, things like friends, family, and life’s simple pleasures often come to mind—not money. So, where does the idea that money can buy happiness come from?

According to Kanchi Wijesekera , PhD, a licensed clinical psychologist and clinical director of the Milika Center for Therapy & Resilience , the origin of this idea is multifaceted. She notes that poverty itself is associated with more stress and a higher risk for mental health issues . 

“There are some caveats, but it can be harder to feel happy when you're living under the chronic stress of poverty and all it entails,” she says. “You may not have the same time and energy to invest into your well-being as if you were to be financially well-off.”

She stresses that this doesn’t mean people with less financial means aren’t happy or can’t be happy. But it can be more challenging to feel happy compared to someone well-off.

Kristin Anderson , LCSW, a licensed psychotherapist and founder of Madison Square Psychotherapy , notes that the idea that money can buy happiness is often deeply engrained in many societies.

“These societies often equate financial success with a good life, and it can be easy to get caught up in that idea,” she says. “It’s the idea that financial resources can provide security, comfort, and opportunities, which are all associated with happiness.”

While money certainly does allow people to afford necessities that can improve their quality of life, such as healthcare and education, Anderson says these are no guarantee of greater happiness. 

Money can enhance our living conditions, but it does not guarantee genuine happiness, which often comes from personal fulfillment, relationships, and emotional well-being.

Whitmire explains that modern consumer culture has a role in creating this idea. By promoting the idea that buying goods and services can make us happier, we’re more likely to believe that having more equals being more fulfilled. 

Dr. Wijesekera notes that our own hard-wired tendencies help fuel these beliefs. Even when we are comfortable, we might think we’d be even happier if we just had a little bit more , whether it’s a new car, a better job, or a bigger house. (Hint: it doesn't).

Money alone doesn’t bring happiness , but researchers have found evidence supporting the connection between financial security and increased happiness and well-being.

According to a 2010 study, higher income does indeed help increase subjective life satisfaction as money can help alleviate emotional pain associated with challenging life events like divorce and poor health. Other research supports the link between financial security and happiness. In fact, studies show that security is particularly connected to happiness in societies where financial instability is more common.

A recent 2023 study has added another layer to this age-old debate by suggesting that higher income levels are connected to increased happiness.

The study found that happiness increases don't plateau once you hit a certain income. Instead, these benefits continue to grow, albeit at a slower pace.

That said, researchers do  note that money isn’t the only factor contributing to happiness. But money undoubtedly plays a huge in creating security, access to resources, and growth opportunities, all of which impact your overall well-being. 

The Limitations of Money in Achieving Happiness

It’s tempting to think that earning a bigger paycheck will be the secret to a fulfilling life. But try not to hinge your happiness on your bank account. Having more money may help increase happiness, yes, but can also bring about diminishing returns if the pursuit of extra cash affects your quality of life.

Studies suggest that beyond a certain income threshold—often cited around $75,000 to $100,000 annually—the additional happiness gains from extra income begin to level off. A boost in salary can make a big difference if you are struggling with basic needs. But you’re less likely to notice the extra income if you are already comfortable or doing well. 

We like to think that money solves all our problems, but the pursuit of financial rewards can be more harmful than good, especially if it costs us healthy relationships and social connections. Sure, having extra cash would be great, but if it means sacrificing meaningful connections with others, are the benefits even worth it?

Our emotional health and well-being thrive on strong relationships and social interactions. What good are financial rewards if they're overshadowing your relationships and experiences?

I know money solves a lot of problems, but it can't buy a sense of purpose and meaning. Think of it like this: if your job is financially rewarding but emotionally draining, burnout is inevitable. You can't appreciate all your hard work and reap the financial benefits if you're emotionally and mentally exhausted. And no amount of money can make your brain or body feel any less tired.

The Role of Money in Different Aspects of Life

The ability to afford what we want and need is often linked to a higher quality of life. Feeling financially secure can reduce anxiety since you’re less worried about how you’ll pay for life’s expected and unexpected expenses.

“We know financial stability also affords improved access to healthcare, leisure activities, and opportunities for personal growth, all of which contribute to better mental and emotional well-being,” Dr. Wijesekera says.

Financial stress can leave you in a constant state of fight or flight mode , she adds. Access to more money and resources shifts you from survivor mode into a space where you can focus on hobbies, friends, or things that make you happy.

Not having to worry about money allows someone to think about their mental health. They have time and an advantage to think about how they are feeling and doing. They do not have a survivalist mentality and can spend time thinking about their pursuits and how they can thrive.

In other words, not having to stress about money is what contributes to happiness the most.

“Imagine the difference between constantly feeling stressed about finances versus having peace of mind knowing your needs are met,” Anderson says. “While money itself is not a direct source of happiness, the security it provides can create a more stable environment for mental health to flourish.”

While it’s important to recognize the relationship between money and happiness, it’s not a silver bullet. True happiness comes from the often intangible things money can’t guarantee including happy relationships, a sense of purpose, and feeling connected to a community.

Strategies for Finding Happiness Beyond Money

There’s no question that financial security can offer comfort and ease stress, but it’s also true that the things that bring us happiness are immaterial.

Some research-backed ways to bring more happiness to your life (that, fortunately, don’t cost money):

Cultivate Positive Relationships

Research has consistently shown that having strong, supportive relationships is essential for mental health and life satisfaction. One 2023 study, in particular, found a significant positive relationship between social support and increased happiness.

Focus on cultivating stronger relationships with your family, friends, and community to gain greater emotional support and a sense of belonging . “Engaging in meaningful interactions and shared activities with loved ones can create lasting memories and strengthen bonds, leading to a sense of fulfillment and happiness that material possessions often cannot match,” Whitmire says.

Dr. Wijesekera suggests building a supportive social network by participating in free community events, joining support groups, or volunteering.

Find Meaning and Purpose

Pursuing a sense of purpose and meaning in your life can also play a pivotal role in your happiness and life satisfaction.

Interestingly, some research suggests that feeling a sense of purpose might be connected to financial success as well. In one study, people who felt a sense of purpose in their work earned more money than those who felt their work lacked meaning.   (Of course, earning more might also help make your work feel more meaningful, too). 

Some experiences like hobbies, volunteer work, and engaging activities can help you find purpose. Dr. Wijesekera suggests exploring inexpensive or free hobbies such as drawing, reading library books, and cooking new recipes. Being open to new experiences can bring a profound sense of fulfillment and meaning that will ultimately help you feel happier.

Practice Gratitude

Gratitude can be a powerful antidote to feelings of sadness and negativity. That’s because regularly reflecting on the things you love and appreciate can help shift your focus away from what might be lacking. Research has found that gratitude interventions such as gratitude journaling increase positive moods, subjective happiness, and life satisfaction.

“Taking time each day to appreciate the good things in your life, big or small, can shift your focus from what you lack to what you have,” Anderson says. “By acknowledging the positive aspects of your life, you can significantly boost your mood and overall well-being.”

Tip From a Clinical Psychologist

Practicing habits such as maintaining a gratitude journal, verbal affirmations, giving thanks, or reflecting on daily blessings can reduce stress and profoundly elevate one's well-being.

Practice Mindfulness and Other Self-Care Strategies

Mindfulness and other self-care practices are powerful tools for fostering better emotional well-being. Mindfulness centers on being fully present and engaged in the present moment without worrying about the past or future.

One study found that mindfulness was associated with various positive outcomes including higher levels of happiness and decreased anxiety and depression. Other self-care activities like meditation , exercise, and adequate sleep are also low-cost or free ways to enhance happiness.

Dr. Wijesekera recommends trying free apps or online videos to learn meditation techniques. She also says that simple mindfulness exercises like deep breathing and mindful walking can be beneficial.

Spending Time in Nature

Dr. Wijesekera recommends spending time outdoors in nature to help alleviate some of the physiological effects of stress. She points to research on the Japanese practice of shinrin-yoku or “ forest bathing .”  This report found that spending just 20 minutes walking outdoors can lower your heart rate, blood pressure, and cortisol levels (a stress hormone).

“Visit local parks, hiking trails, or beaches, which are often free,” she says. “Gardening, even in small spaces or community gardens, can also be a low-cost way to connect with nature.”

Help Others

Anderson also recommends volunteering and finding ways to assist others in your life. “Volunteering your time or doing something kind for someone else can be incredibly rewarding,” she says. “It strengthens your sense of community and purpose, and seeing the positive impact you have on others can be a great source of happiness.”

While evidence suggests that money increases happiness, it isn’t the only thing that brings joy. Plenty of things bring fulfillment to your life that doesn’t involve boosting your financial bottom line.

Strengthening relationships, going after meaningful goals, and caring for yourself are all proven strategies for improving your happiness and well-being. Focusing on those areas can help you create a more fulfilling life, regardless of your finances.

Remember, happiness doesn't come from a single source. By incorporating these strategies into your life and building a fulfilling lifestyle, you can find joy and contentment, regardless of your financial situation.

The answer to the question of whether money can buy happiness is, well, complicated. Research shows that money can alleviate stress and improve life satisfaction. But those benefits will start to taper off after a certain point. A higher income level provides financial security and access to resources and opportunities but doesn't guarantee enduring happiness.

Happiness isn’t just about what’s in your bank account. Finding happiness is an ongoing process that involves many facets. And while there’s nothing wrong with pursuing financial well-being, don't sacrifice your mental health in the long run. Instead, find a balance between your financial pursuits and relationships and experiences. That, we say, is the best approach for unlocking lasting happiness.

Kahneman, D., & Deaton, A. (2010). High income improves evaluation of life but not emotional well-being .  Proceedings of the National Academy of Sciences ,  107 (38), 16489–16493. https://doi.org/10.1073/pnas.1011492107

Ek, C. (2017). Some causes are more equal than others? The effect of similarity on substitution in charitable giving .  Journal of Economic Behavior & Organization ,  136 , 45–62. https://doi.org/10.1016/j.jebo.2017.01.007

Buttrick, N., & Oishi, S. (2023). Money and happiness: A consideration of history and psychological mechanisms .  Proceedings of the National Academy of Sciences ,  120 (13), e2301893120. https://doi.org/10.1073/pnas.2301893120

Beygi, Z., Solhi, M., Irandoost, S. F., & Hoseini, A. F. (2023). The relationship between social support and happiness in older adults referred to health centers in Zarrin Shahr, Iran .  Heliyon ,  9 (9), e19529. https://doi.org/10.1016/j.heliyon.2023.e19529

Hill, P. L., Turiano, N. A., Mroczek, D. K., & Burrow, A. L. (2016). The value of a purposeful life: Sense of purpose predicts greater income and net worth .  Journal of Research in Personality ,  65 , 38–42. https://doi.org/10.1016/j.jrp.2016.07.003

Cunha, L. F., Pellanda, L. C., & Reppold, C. T. (2019). Positive psychology and gratitude interventions: A randomized clinical trial .  Frontiers in Psychology ,  10 , 584. https://doi.org/10.3389/fpsyg.2019.00584

Crego, A., Yela, J. R., Gómez-Martínez, M. Á., Riesco-Matías, P., & Petisco-Rodríguez, C. (2021). Relationships between mindfulness, purpose in life, happiness, anxiety, and depression: Testing a mediation model in a sample of women .  International Journal of Environmental Research and Public Health ,  18 (3), 925. https://doi.org/10.3390/ijerph18030925

Park, B. J., Tsunetsugu, Y., Kasetani, T., Kagawa, T., & Miyazaki, Y. (2010). The physiological effects of Shinrin-yoku (Taking in the forest atmosphere or forest bathing): Evidence from field experiments in 24 forests across Japan .  Environmental Health and Preventive Medicine ,  15 (1), 18–26. https://doi.org/10.1007/s12199-009-0086-9

By Kendra Cherry, MSEd Kendra Cherry, MS, is a psychosocial rehabilitation specialist, psychology educator, and author of the "Everything Psychology Book."

Home / Essay Samples / Life / Money / Can Money Buy Happiness? An Argumentative Analysis

Can Money Buy Happiness? An Argumentative Analysis

• Category: Life , Education
• Topic: Happiness , Money , Personal Statement

Pages: 1 (436 words)

• Downloads: -->

--> ⚠️ Remember: This essay was written and uploaded by an--> click here.

Found a great essay sample but want a unique one?

are ready to help you with your essay

You won’t be charged yet!

Standardized Testing Essays

Coaching Essays

Teacher Essays

Reading Essays

Online Classes Essays

Related Essays

We are glad that you like it, but you cannot copy from our website. Just insert your email and this sample will be sent to you.

By clicking “Send”, you agree to our Terms of service  and  Privacy statement . We will occasionally send you account related emails.

Your essay sample has been sent.

In fact, there is a way to get an original essay! Turn to our writers and order a plagiarism-free paper.

samplius.com uses cookies to offer you the best service possible.By continuing we’ll assume you board with our cookie policy .--> -->