Our Humble Opinion: Money and Happiness

HERE AT HUMBLEDOLLAR, we think money is sort of like health. It’s only when you’re sick that you realize how great it is to feel healthy. Similarly, it’s only when you don’t have enough money that you realize how great it is to be on a solid financial footing. More money may not make you happier—but not having money could make you extremely unhappy.

What does this mean for your personal finances? You want to get to the point where money isn’t something you worry about. And the way you do that is to live beneath your means, save like crazy and try to accumulate a decent-size investment portfolio.

At first blush, this may not sound like a whole lot of fun. But the truth is, if you’re like most people, the dollars you spend aren’t buying you a whole lot of happiness. All those cars and houses and toys you want? They will likely bring you surprisingly little pleasure.

Instead, research suggests there are two keys to happiness. First, we need to spend our days striving after things we think are important. Second, we need to be surrounded by friends and family. We need fulfilling work—and we need community. If we manage our finances carefully and don’t get sidetracked by excessive spending, we should be able to build a life where both are possible.

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Related: Jonathan’s Story: Five Takeaways from Happiness Research

Blog: Three Keys to Happiness

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