How the ‘wealth-Happiness Link’ Can Change the Way You Think About Money
You’ve heard that money can’t buy happiness , but you probably haven’t heard about the connection between wealth and happiness. While money itself doesn’t bring happiness, it definitely makes you feel more secure and can give you the opportunity to buy things that also contribute to happiness. The idea of the wealth-happiness connection goes one step further, exploring not only how wealth may or may not make us happy, but also how happiness can positively impact our bottom line.
What is the connection between wealth and happiness?
Many studies have shown that there is a connection between overall satisfaction and economic growth. While you don’t need a group of scientists to tell you that you’re happier when you have a reliable checking account, it’s worth considering these findings: The relationship turns out to be bidirectional, meaning happiness doesn’t just come from economic reasons . economic growth, but can also be its “engine”. Happiness will help you earn more money. Again, even on a common sense level this makes sense. When you feel happy and your needs are met, you are less stressed and can get more done.
What else plays a role in this regard?
Of course, having money doesn’t automatically make you happy. Like any emotion, happiness is subjective and depends on many personal factors within you. Just as there is research being done on the relationship between happiness and money in general, there is also research being done on the smaller elements involved in this process .
In this study, a person’s well-being seemed to be influenced not by income, but by the following two concepts: subjective socioeconomic status and something called “Comsim.” Subjective socioeconomic status is a person’s perception of their social and economic standing, which is determined not by income, education, or job, but rather by that person’s own feelings and beliefs about how they compare to other people around them. Comsim is the practice of comparing your current socioeconomic situation to people from a similar background, based on the idea that it is easier to make comparisons with someone who had the same upbringing as you than with your immediate peers. Both of these factors seem to be important predictors of subjective well-being, and if you focus too much on them, you can reduce your own happiness, regardless of how much money you actually have.
So the goal is to focus more on personal goals, progress and achievements. Avoid comparing yourself to others and instead view your financial situation purely as a personal matter. Consider whether the budget you set for the new year is enough, not whether you have enough to compete with your childhood best friend. Celebrate any financial achievements you make and don’t think about the ones you see other people making.
Start by assessing your finances with a checklist for the rest of the year, then resolve to earn more if you want, as well as celebrate your successes and spend money on things you enjoy. Your goal is not really to be rich and happy, but to be happy with yourself and overcome the desire to compete with everyone else. This is the real connection between wealth and happiness.