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Main ways money can buy happiness: an examination of wealth

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Has anyone told you that money cannot buy you happiness?

No one knows the origin of this saying, but billions of people take it as good advice. The fact is that money can buy you happiness. Of course, millionaires and billionaires also have a number of problems to solve, and there is some truth in the saying "more money, more problems."

However, learning to earn and appreciate money is an essential part of life in our society, regardless of race or where you live in the world. Without money, you are destined for a life of poverty, and no one wants that to happen to them or their family.

Financial stress in America

The United States is the most prosperous nation in the developed world. However, in recent years, the economic landscape of the economy is changing rapidly. The wealth gap in the United States continues to widen, and more people find themselves struggling to survive each month.

Recent statistics show that more than 70 percent of millennials currently live from one salary to another. Federal Reserve data also shows that despite government incentives, such as the Roth IRA, the savings rate is at its lowest point.

Financial stress is now a serious concern for most Americans, with the lifestyle of the middle class dissolving in the eyes of the country. Ask any American what is their most important source of stress in their life, and they will probably receive the answer as "money."

Most Americans are indebted to the neck and have to deal with student loans, consumer loans, car loans and the service of various other forms of credit. With this easy credit lifestyle, it is difficult to get ahead when you pay an annual interest rate (APR) of 24 percent.

Homeless rates continue to rise dramatically in the United States, and the warmest western half of the country attracts the formation of "store cities" in states like California. People declare their financial positions as the reason for drug and alcohol addiction. Being late on your bills can also lead to the development of depression.

When you combine the effects of depression towards your financial position, along with drugs and alcohol, it has disastrous results. While people may have told you that money cannot buy you happiness, lack of money can buy you much misery in your life.

What is happiness for you?

Have you ever asked yourself this question? Defining happiness is an individual task. What makes you happy may not make your friend or the person across the street happy. Each person has an idea of ​​what makes them happy, and most of the time, it has nothing to do with money.

As human beings, we value experiences more than sums in our bank account. However, you need money to have these experiences.

For example, suppose you are a young woman in her twenties and that you and your longtime boyfriend become pregnant. For most people, their children are the most important thing in their lives. If you have a lot of money in a fat bank account, you can afford to give your child the best of everything.

They will have the best education, the best food, the best clothes and the best opportunities in life. As a result, there is a good chance that they will become a well-adjusted and productive member of society in the future.

On the other hand, we could reverse the financial position and say that the young pregnant woman did not know the identity of her son's father. She works at a minimum wage that barely covers the bills. She depends on government-assisted health care for the birth, the child and food stamps to put dinner on the table for the child.

The boy attends a government school that is full of violent gang members and ends up joining the gang. They are caught selling drugs and spend twenty years in and out of jail. There are not many opportunities in this scenario, and it is a reality for hundreds of thousands of Americans.

From this example, we can clearly see the difference that money makes in our lives, and this effect extends to every area of ​​our being. Money defines our state in life, controls the opportunity we receive and allows us to stop working and enjoy our retirement years after raising a family.

Do you like to be broken?

If you are a millennium, then there is a good chance that you are bankrupt right now. You may have a job with a decent income, but your cost of living is more than you earn, no matter if your salary is $ 100,000 or $ 50,000.

When your cost of living exceeds your income, you need to borrow to maintain your finances, which leads to a vicious circle of credit cards, personal loans and other lines of credit that cost you interest to maintain the account.

Being in ruin is not much fun. You get stressed by paying your bills, you worry about covering your family's needs and if everyone will have a roof over your head at the end of the month. Financial stress is a real thing and can lead to the development of mental disorders and mental illness.

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More than 130 million Americans suffer from some type of anxiety disorder. That is almost half of the country that lives to the limit at any time. As a result, prescription medications such as Xanax and Valium are at record levels across the United States. Most people with addiction problems claim that financial problems are one of the main reasons why they became addicted in the first place.

On the other hand, Americans who have enough money to live without worrying about their finances live happier lives. In most cases, children have more opportunities, and there is never a shortage of food or worry if the sheriff will come to close the house this weekend.

What would you do with $ 10 million?

Imagine you won the lottery. Really. What would you do with it money? If you had more money than you know what to do, what would you do when the longest shopping spree of your life is over? Of course, the idea of ​​entering any retail store and buying the entire store can be enjoyable. However, there is a point where that doesn't matter anymore.

Do not you believe it? Well, the main Hollywood stars make use of professional shoppers to avoid going to stores and wasting time. This is because people who have money finally realize that time is the most valuable asset they have.

So what would I do if I had all the money in the world and how much is enough?

The distribution curve and diminishing returns on wealth

Research shows that there is actually a threshold for how much money can bring you happiness. Studies show that Americans who earn between $ 75,000 and $ 90,000 a year are in a stress-free financial environment.

However, the same study shows that Americans who earn more than $ 75,000 do not experience any significant benefits in terms of happiness. In other words, it doesn't matter if you earn $ 250,000, there is no appreciable measure that you are happier than if you earn $ 90,000.

Decreasing performance
Decrease in wealth returns, image of CNBC

Other surveys show that different generations have different ideas of what it means to be financially secure. In the study, when asked about the ideal figure to retire, Boomers suggested an average of $ 2 million in cash. Millennials believe the ideal number is $ 2.5 million.

This difference highlights the concept of purchasing power and inflation, and how each generation sees the idea of ​​being "rich" as a specific number associated with its net worth.

Money CAN buy happiness: this is how

The truth is that money can buy you happiness. However, the good news is that this happiness actually has a price: an annual income of $ 75,000 or $ 2.5 million in cash. If you can achieve this number, you can live without stress about your financial situation.

What happens when you reach this level of financial success? You have more free time and you can work to achieve what you want from life. For example, let's take someone who has no savings or income. The person gets a job at McDonald's flipped burgers for a minimum wage.

This person has no other option at work, since he competes with thousands of other people for a job and a salary. The employer pays them enough to cover their living expenses, if that. As a result, the employee has no choice but to continue living a life of quiet despair, from salary to salary.

As a result of walking along the bread line, they do not seek to challenge authority, innovate or follow their instincts; After all, it could cost them their job. Without work, there is no income, and nothing more than poverty expects.

However, a person who has a successful career, earns money and saves, then has a financial cushion. It doesn't matter if they lose their job for three or six months; They are free to start a business using their guarantee as initial capital. In short, they have more options, and if things have a pear shape, then they have a financial cushion to turn to in life.

This instance is another clear example of how money can buy you happiness. Money gives you more control over the results in your life. When you control your environment, you can create. However, when your environment controls it, you must react.

The point is that people with money and salaries over $ 75,000 have a better quality of life. They exist on an airplane where money does not affect their decision-making process in their daily actions. As a result, they have more freedom and more time. When you have more freedom and time on your hands, you can afford to take more risks.

Risks such as starting a business chasing your passions is an excellent example of this freedom to have money. When you start a business, you love it, you can turn your vocation into vacations. Whether you own a beachfront store or close mega-deals for a property portfolio, money gives you the power to decide the direction of your life.

Is there anything that money cannot buy?

Of course. There are many things that money cannot buy, including happiness. Yes, we said it, money really can't buy you happiness. For example, there are probably many millionaires out there who may not be successful with their family life or with other relationships due to various reasons.

Although they are worth billions, your daughter may not want to talk to them. Maybe they have a fat bank account but they feel lonely and empty inside. However, research shows that the $ 75,000 threshold has an impact on the quality of life we ​​experience.

By having more money at your disposal, you have the opportunity to seize the opportunity and leave the razor from one month to another.

In conclusion: the power to set goals

If you are currently dealing with a financial situation that needs improvement, then you must set some goals for yourself. Setting goals gives you direction in life and allows you to progress further and get out of a difficult situation in life.

Even if you are working with a minimum wage and think there are no prospects in the future, you are wrong and can do it for you and your family. There are many stories of people who achieve feats almost impossible to rise from the ashes of poverty to wealth.

Start by thinking about your ideal life and make it attainable. You don't need to think about having that Lambo right now. Setting achievable goals makes it more convincing for your mind to accept, and is more likely to achieve it. When setting goals, it is better to get small victories than to swing towards the fences.

Then, modify that lifestyle and identify what you would have to do to achieve that level of financial success. The answer is different for everyone, but it is still possible if you decide to look for it.

Create a plan to boost your finances and then work on the plan. Eventually, with enough persistence, you could achieve the lifestyle you deserve and desire.

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Disclaimer: The opinions expressed herein are only those of the author, not those of any bank or credit card issuer and have not been reviewed, approved or endorsed by any of these entities.

Disclaimer: The answers below are not provided or commissioned by the bank advertiser. The responses have not been reviewed, approved or supported by the bank advertiser. It is not the responsibility of the bank advertiser to ensure that all publications and / or questions are answered.

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