Can money buy happiness?

This is a profound question. We often debate about this in life. This question has two essential facets. The first is the materialistic desire (money), and the second is the spiritual ( happiness) one. From a philosophical point of view, money is just a means to meet the necessities of life. However, the human mind is crazy. Unless you tame it, it keeps demanding new things every day. The basic needs get slowly replaced by wants. The craving for such desires keeps increasing. Eventually, the mind starts demanding more, more, and more. This endless pursuit of desires leads to this question, “Can money buy happiness?”

Many social scientists have conducted scientific studies to figure out the relationship between happiness and money. Daniel Kahneman is one of them. He is an eminent psychologist and a recipient of the Nobel prize. His work on the integration of psychology with economic science won him the Nobel Prize.

In 2010, Daniel Kahneman along with A. Deaton published a research paper titled, “High income improves evaluation of life but not emotional well-being.” The study concluded that “Emotional well-being [also] rises with log(income), but there is no further progress beyond an annual income of $75,000.” The happiness increases up to a certain income threshold and then levels off.

In 2021, M. A. Killingsworth, a senior fellow at Wharton School, contradicted this study and published a research paper titled, “Experienced well-being (happiness) rises with income, even above $75,000 per year.” He found a linear relationship between average experienced happiness and log(income) which extended well beyond $200,000.

Since this study was contradictory to the one conducted in the year 2010, both researchers collaborated to reconcile the differences. Such work is called "adversarial collaboration.”

The joint research concluded that the relationship between happiness and income is dependent on the present state of happiness level as well. For the least happy group, happiness peaks after a certain threshold. For the medium-range happy cohort, it increases linearly with income. And for the top happy lot, as income increases, happiness accelerates at an increased rate.

However, this research also shows that the relationship between income and happiness is weak. The correlation between average happiness and log (income) is just 0.09. This proves that happiness does not depend on money. And besides money, there are many variables on which happiness is dependent. The most important are personal relationships, health, a positive mindset, and purity of thoughts.

Though money may not buy happiness it certainly buys independence. And this financial freedom allows one to lead a life on his terms and conditions. That is the power of money. However, the ultimate pursuit must always be to seek inner happiness. And this can only be attained by exploring the answer to the question, “What are the things which make you happy?” rather than, “How much money is enough?”

Have you ever introspected about this question, "What are the things which make you happy?" Just give it a thought. You will be surprised to see the result. Money may not even figure out in this list. But happiness definitely will. True happiness is a state of mind. It is not dependent on anything external. It is a state of contentment, peace, and love.

The Buddha said, “It is ridiculous to think that somebody or something else can make you happy or unhappy.”