Can money buy you happiness?

31 March 2010

Money can’t buy you happiness, according to recent research. Two professors of economics, Curtis Eaton and Mukesh Eswaran, have found that as we become richer we become less happy.

They even go as far as to suggest that greater affluence can seriously damage a nation’s health as the stress of keeping up with the Joneses takes its toll on those who cannot afford the latest ‘must have’ product even if their wealth has increased.

But while I agree that our never-ending desire for new gadgets and fashion fixes could easily plunge anyone into misery, having enough money to achieve specific goals could help improve our general well-being and make us happier too.

There’s nothing more distressing than seeing your debts escalating out of control, not knowing how you’re going to make ends meet, or never being able to reach that special goal you’re dreaming of – and having a bit of extra cash would certainly help to ameliorate this situation for most people.

So yes, money may not make us happier but being able to buy your first home, having that dream wedding or taking your whole family on a nice holiday definitely will. 

Luckily, you don’t have to be a millionaire to realise your goals. For most people this can be achievable by simply setting out a budget and learning how to prioritise goals.

In this Moneywise article we explain out the five steps you need to take in order to hit your targets – all without breaking the bank.