Can money buy happiness? Maybe. Read on to find out what new data says about the age-old question.
Image source: Getty Images
The Beatles famously sang that “money can’t buy me love.” And they were no doubt onto something.
But while money may not be able to buy you love, new data from Empower reveals that it could potentially buy you happiness. The amount of happiness you get, though, might hinge on how much money you have.
Is $1.2 million the magic number?
A good 58% of Americans think that money can, indeed, buy happiness. The average American thinks it takes $1.2 million to attain financial happiness.
Let’s define what financial happiness means, though. For 67% of those surveyed, it means being able to pay bills on time and in full — something that’s instrumental to maintaining a strong credit score. And speaking of credit, for 65% of Americans, financial happiness means being able to live debt-free.
Meanwhile, 54% of respondents say financial happiness equates to being able to enjoy everyday small luxuries without worry. And 53% say it means being able to afford experiences with loved ones.
Of course, it doesn’t necessarily take a $1.2 million windfall to pay bills on time and enjoy modest luxuries, like the occasional restaurant meal or store-bought coffee. And not everyone is gung-ho on that $1.2 million goal.
For 32% of Americans, all it takes is an extra $15,000 to increase their financial happiness for a good six months. And 17% say it would only take $5,000 to do the same.
How to achieve financial happiness yourself
It’s more than fair to say that money can buy happiness to some degree. Having money could, for you, mean being able to outsource certain home maintenance tasks to free up much-wanted time. It could also mean being able to get dinner from a local restaurant so you don’t have to spend hours grocery shopping, cooking, and cleaning up afterward. Money could also afford you the opportunity to travel. And that experience could have lasting positive effects.
But thankfully, it doesn’t necessarily take upward of $1 million to be able to say you’re happy or in a financially good place. If your idea of financial happiness is being able to cover your bills without worry and afford the occasional luxury, there’s a simple way to get there.
Set a savings goal so you have money in the bank for emergencies or the things you want to afford. Then, automate your savings so you have money going toward that goal every month as your paychecks arrive.
Maybe having an extra $500 in savings will make it so you don’t have to feel guilty about ordering dinner on those nights when you’re too exhausted to cook. If that’s the case, set up an automatic transfer of $50 to your savings account every month. Within a year, you’ll be in a place where you can order dinner rather than make it yourself.
Some people feel that they shouldn’t attribute too much importance to money. But actually, it’s OK to do so, and it makes sense to do so to some degree. The key, however, is to land on a number that’s apt to change your life for the better in one way or another, and then work to meet that goal.
Alert: highest cash back card we’ve seen now has 0% intro APR until 2025
If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.
In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.
