It’s an age-old question intensified by rising living costs: can money truly buy happiness?
Research by Nobel laureates Angus Deaton and Daniel Kahneman reveals a different reality. Their study suggests that beyond a certain income level, additional wealth contributes minimally to overall happiness. While financial stability boosts life satisfaction, it alone does not determine true fulfilment.
The 2024 Australian Unity Wellbeing Index further illustrates this, showing that beyond basic needs, the significance of strong relationships and meaningful achievements deepens, creating the ‘Golden Triangle of Happiness’. This model proposes that true happiness is derived not merely from financial resources but from rich personal relationships and a strong sense of purpose.
This research echoed my own experience; happiness wasn’t waiting at the end of a mortgage or the start of retirement. It led me to rethink what true wealth really means. I realised that genuine happiness isn’t just tied to financial abundance; it also comes from self-worth, deep relationships, wellbeing, and making time for meaningful pursuits.
Financial stability: A pillar, not the pinnacle
While money may not directly buy happiness, it undeniably provides the safety and security essential for a joyful existence. Financial stability ensures access to fundamental needs like food, water and shelter, laying the foundation from which we can pursue deeper fulfilment.
Once these essentials are met, we naturally shift our focus toward meaningful relationships, personal growth, and a sense of purpose – the very things that sustain long-term happiness. True wealth is not just about financial security but also the richness of our connections and the fulfilment found in meaningful achievements.
By securing our basic needs, financial stability enables us to explore these deeper aspects of life, ultimately enhancing our overall happiness and sense of true wealth.
What are you really worth?
Before exploring further, it’s important to acknowledge the crucial role self-worth plays in shaping our happiness.
Our financial outlook, money decisions, and even our perception of deserving wealth are all influenced by how we value ourselves. Relying on external validation through money, status or achievements can lead to feelings of emptiness if we don’t intrinsically feel worthy of abundance.
True wealth isn’t just about financial success but about recognising the value we bring to our own lives and those around us. It’s found in the contributions we make to our communities and the connections we nurture.
Strong bonds, both with ourselves and the world around us, cultivate joy, fulfilment and a lasting sense of accomplishment.
Relationships: The wealth that money can’t buy
Similarly, the Harvard Study of Adult Development shows that robust relationships are the strongest predictors of long-term happiness, not financial prosperity. In the pursuit of financial security, it’s crucial not to overlook the relationships that enrich our lives.
Wealth is measured in moments – shared conversations, uplifting friendships and supportive family bonds.
Worthy & Wealthy: Discovering Abundance and Fulfilment Beyond Money by Emma Lagerlow.
Health is true wealth
We often say ‘health is wealth’, and this encompasses more than just our physical state; it includes our mental and emotional stability as well. Without comprehensive wellbeing, achieving happiness can be a struggle.
Prioritising physical, emotional, and mental rejuvenation through daily practices such as exercise, restful sleep, and mindfulness activities like meditation and journalling lays the groundwork for a richer, more fulfilling life.
This holistic approach to health is fundamental in building the kind of wealth that genuinely contributes to our happiness.
Align your life with purpose and time freedom
Merely chasing money rarely leads to lasting satisfaction. True happiness is achieved by aligning our time with what genuinely matters – a strong sense of purpose.
This often means evaluating how we spend our time, whether it’s on truly fulfilling activities or merely fulfilling expectations.
Final thoughts: You are already wealthy
True wealth extends far beyond the figures in our bank accounts. By integrating financial stability with self-worth, deep relationships, wellbeing, and time devoted to purposeful activities, we create a life rich in meaning and fulfilment.
Let’s embrace and nurture the non-material riches already present in our lives – our sense of self, wellbeing and the moments, connections and experiences that bring us joy. So, if money alone doesn’t buy happiness, what truly makes you feel wealthy?
