​

Financial Samurai

Slicing Through Money's Mysteries

  • About
  • Invest In Real Estate
  • Top Financial Products
    • Free Wealth Management
    • Negotiate A Severance
  • Buy This, Not That (Bestseller)

Only The Poor or Super Rich Say “Money Can’t Buy Happiness”

Updated: 08/25/2021 by Financial Samurai 209 Comments

Whoever said, “money can’t buy happiness” is either poor or wealthy beyond their wildest dreams. The incessant amount of studies by researchers trying to prove money can’t buy happiness is simply a result of the researcher’s own poverty or unhappiness.

Because they are financially mediocre, it seems researchers are trying to console themselves that it’s OK not being wealthy.

Generally, researchers have a higher sense of self because they have more educational training. Hence, it tears them up when they see other “lesser beings” make more than them. Meanwhile, those who continue to highlight research stating that money can’t buy happiness are trying to justify their own financially unspectacular selves as well!

The Poor And Financially Mediocre Are In Cahoots

You see, the financially mediocre are all in cahoots with each other. They’ve banded together to proclaim that being middle class regular people is good enough. It probably is good enough for most people, but not for these unsatisfied folks who think they are smarter and better than everyone else! 

If being middle class or amongst the poor was good enough, then they’d leave well enough alone and be happy with their financial mediocrity. It’s a hard pill to swallow, but swallow they must. 

Not everybody can make multiple six figures, live in million dollar houses, and pay cash for luxury automobiles. That’s just life and they are trying to bring you down. Don’t let them!

The Tricky Rich

On the flip side, you have the super rich who also say, “money can’t buy happiness.”  They’ve got all the luxury in the world, with not an ounce of financial worry. Even millionaires can’t resist free. But, it must be nice to figure out what to splurge on. And never having to budget during Christmas season. Meanwhile, the poor are just trying to get food on the table.

It must be nice going to $1,000/head charity galas and paying $200 for front row seats to watch the great Itzhak Perelman play violin. These types of people need to fight for the poor. Otherwise, they’ll be deemed as greedy bastards.

The guilt factor the super rich have is enough to say statements such as, “The rich aren’t paying their fair share of taxes!” Even if you slapped a 99% marginal income tax rate on Warren Buffet, he still will make more than 99% of the world. 

Of course it’s OK to raise taxes when you have so much wealth! The super rich will lecture us to stop focusing so much on money and just following our dreams. Don’t listen to them for one bit! They’re just trying to win you over and pretend to be like one of you.

Definitely Happier With More Money

I don’t know about you, but I’m very happy making more than I did 10 years ago. 10 years ago, I was worried whether I could afford getting desert for two on a date. Now, the cost of a seven layer chocolate cake for $8.99 doesn’t even cross my mind, only the 5 miles I’ll have to run tomorrow instead.

10 years ago, I used to stress more at work because if I ever got fired, my safety net was as think as sheets of wet Kleenex! Now, I’m focused on all the good things at work and don’t worry about face time issues and work place politics.

Ten years ago, I would never be able to consciously buy two round-trip tickets the day before to celebrate Valentines week in Hawaii. Now, I’m excited to go on more last minute adventures because experiences are what matter most!

Related: Much Poorer But Also Much Richer Too

Unlike The Poor, Those With Money Don’t Worry About Money B/c They Have It

The reason why money does buy happiness is because once you have money, you don’t worry about money anymore. All the stress that comes with a lack of money melts away. You’re not pissed at your friends for short-changing the pot during a group meal outing. You don’t care if you get a flat tire and have to spend $200 to replace. You’re just not worried anymore, and that feels fantastic!

Money also allows you to buy fantastic memories. Most would agree that your happiest moments are spent with friends and loved ones.  If you have money to travel and be with those you care about, is that not happiness production? It absolutely is. What about all the fun times you had taking salsa lessons or playing tennis at the club? Not a cheap endeavor, but so fun, and made possible by money.

I got a stupid $110 parking ticket the other day as I was dropping my family off at the science museum. I was gone for just 5 minutes. In the past, I would have been pissed. Now, I think to my self, whatever.

On November 10, 2018, I had to take my son to the ER because he was vomiting due to some virus. The ER visit cost a $100 co-pay. I was glad to easily pay it to get access to treatment. Another example of how money reduces stress in an already stressful situation.

Related: 5 Money Habits I Learned That Will Never Make Me Rich

Money Does Buy Happiness

When people start telling you money can’t buy happiness, take a good hard look at their finances. They are likely telling you this because they don’t have much money themselves.

They haven’t tasted the freedom money buys. And if they so happen to be research PhD’s, well you can forget about their advice right there. If they are super rich, then you know they are just trying to blend in and not look selfish.

Money can buy happiness because money buys peace of mind and opportunities for great experiences. Don’t be fooled by ego-consoling research and those who espouse! They are just trying to keep you from achieving your financial goals so they can feel better about themselves.

Related posts:

The Unhealthy Desire For Money And Prestige Is Ruining Your Life

Solving The Happiness Conundrum In Five Moves Or Less

Most Americans Don’t Pay Federal Income Taxes

Solving The Happiness Conundrum In Five Moves Or Less

Recommendation To Build Wealth

Manage Your Money In One Place. Sign up for Personal Capital, the web’s #1 free wealth management tool to get a better handle on your finances. In addition to better money oversight, run your investments through their award-winning Investment Checkup tool to see exactly how much you are paying in fees. I was paying $1,700 a year in fees I had no idea I was paying.

After you link all your accounts, use their Retirement Planning calculator that pulls your real data to give you as pure an estimation of your financial future as possible using Monte Carlo simulation algorithms.

Definitely run your numbers to see how you’re doing. I’ve been using Personal Capital since 2012 and have seen my net worth skyrocket during this time thanks to better money management.

Personal Capital Retirement Planner Tool

For more nuanced personal finance content, join 100,000+ others and sign up for the free Financial Samurai newsletter. Financial Samurai is one of the largest independently-owned personal finance sites that started in 2009. Everything is written based off firsthand experience. 

Tweet
Share
Pin
Flip
Share

Filed Under: Most Popular

Author Bio: I started Financial Samurai in 2009 to help people achieve financial freedom sooner. Financial Samurai is now one of the largest independently run personal finance sites with about one million visitors a month.

I spent 13 years working at Goldman Sachs and Credit Suisse. In 1999, I earned my BA from William & Mary and in 2006, I received my MBA from UC Berkeley.

In 2012, I left banking after negotiating a severance package worth over five years of living expenses. Today, I enjoy being a stay-at-home dad to two young children, playing tennis, and writing.

Order a hardcopy of my upcoming book, Buy This, Not That: How To Spend Your Way To Wealth And Freedom. Not only will you build more wealth by reading my book, you’ll also make better choices when faced with some of life’s biggest decisions.

Buy This Not That Book Best Seller On Amazon

Current Recommendations:

1) Check out Fundrise, my favorite real estate investing platform. I’ve personally invested $810,000 in private real estate to take advantage of lower valuations and higher cap rates in the Sunbelt. Roughly $150,000 of my annual passive income comes from real estate. And passive income is the key to being free.

2) If you have debt and/or children, life insurance is a must. PolicyGenius is the easiest way to find affordable life insurance in minutes. My wife was able to double her life insurance coverage for less with PolicyGenius. I also just got a new affordable 20-year term policy with them.

3) Manage your finances better by using Personal Capital’s free financial tools. I’ve used them since 2012 to track my net worth, analyze my investments, and better plan my retirement. There’s no better free financial app today.

Subscribe To Private Newsletter

Comments

  1. Artie Whitefox says

    December 17, 2021 at 6:35 pm

    Money gives people peace that the world gives. Jesus wants to be in us giving each other peace, that the world cannot give. People being each others money. You want that? I will make one for you. I will ask people to send materials that are be needed to make what you requested. Jesus lets people be people. Each person regulating themselves. That is how it will be in God’s kingdom. God’s unseen kingdom needs to be in us, now.

    Reply
  2. Artie Whitefox says

    November 7, 2021 at 4:55 pm

    Ecclesiastes 1:2“Vanity of vanities, saith the Preacher, vanity of vanities; all is vanity.”
    King James Version (KJV)
    Solomon said that. Rich in earthly wealth are seeing what Solomon saw. The rich have an abundance of a thing that Satan wants to gather unto that being’s vain self. It is money.

    Reply
  3. Snazster says

    August 25, 2021 at 7:44 am

    Been poor, very poor. Now I don’t need to sweat it. Car needs new brakes, refrigerator and washing machine both just gave up their last, it doesn’t matter. Put it on plastic and pay the plastic off on the next bill. It might not make me happy but it doesn’t make me unhappy either; it simply is.

    Kids ask me for a lift to the airport, I hire them an uber rather than spend several hours going back and forth. Eating out (or getting delivery) is strictly a matter of time and calories, money never enters into it. This comes closer to happiness, but it’s not quite there, either.

    Money can’t buy happiness? Technically, I think that is a true statement. If you could, the rich would always be happy. You can be unhappy even with money. You certainly can’t pay to avoid untimely deaths, serious injury, or mental problems for you and your loved ones. But if you think you can be happy without money, there is something missing in the area of your personal sense of responsibility and independence, or someone with money is taking care of you (perhaps you are a child?).

    Money is a prerequisite for long term happiness.

    Sidenote: An awful lot of tv and cinema revolves around people gaining wealth, discovering they don’t like it, and being happy to return to a life of less certain financial security. You see the same thing with old people being made young again, or at least given the opportunity, then choosing being old over rejuvenation because they want to “grow old gracefully.” As if there were anything graceful or dignified about the afflictions of old age. These are entertainments made by wealthy people and their message is for the masses saying: “Be content with your lot, little ones.” Reject these themes as the propaganda they are.

    Reply
  4. Shakir says

    March 1, 2020 at 4:24 am

    I might have a bit of contradiction here. Money can’t buy happiness but it can buy a
    few things that can bring happiness – like getting a spa massage, eating one’s favorite food and traveling the world all of which require money. But when it comes to genuine relationships, that’s what money can never buy.

    Reply
    • Ebony says

      April 13, 2020 at 12:03 pm

      if it cannot buy happiness then what is it buying when you”re getting a spa massage, eating a favorite food, or traveling the world? depression?

      Reply
  5. Shahinaz El Ramly says

    October 18, 2019 at 5:37 am

    Why people comment on poverty or richness as a state of happiness, material is something it is financial science and the state of happiness is psychology another science, the two states are not correlated, but it is human ignorance.

    Reply
  6. JoeTaxpayer says

    March 19, 2019 at 2:48 pm

    “an emotionally unintelligent elitest”

    Why the name calling?

    I continue to think about this issue, and see the responses on this post.

    My wife took our daughter’s car in for an inspection sticker. The neighbor’s nanny was with her at the time. The car failed inspection, and while my wife just took the report and planned the visit to a neighborhood mechanic, the nanny looked like she was about to puke. She lives check to check, and any unplanned expense is an issue. For my wife, it was an appointment, planning around getting my kid back to college (with my car), fixing the kid’s car, and arranging a swap after the repair. A bit of annoyance, but not the reaction the neighbor’s nanny had to this.

    There is a level that many live at, check to check, where money is a concern that keeps one up at night. When a broken central A/C means sleeping in a puddle for the hot summer days instead of getting it repaired. Where a broken transmission means $XXX added to the credit card you spend 3 years paying down to near zero. Am I happy that I don’t have those minor things to derail my life? Of course. Does all the money in the world cure my mother in law’s dementia? No. But it buys a level a care so when we visit, daily, she’s clean, kept busy, fed, and maintains her dignity. (I can’t be the only guy that loves his mother in law, right?)

    Someone growing up in a wealthy household doesn’t know what it’s like to have parents stress over money needed for simple purchases. I agree, it can’t buy you love. But it changes the simple expenses we all hit for “Where to I get $XXX for this” to “another bill to pay”. Don’t underestimate that.

    Reply
  7. Jeanna Storey says

    March 11, 2019 at 6:37 pm

    Whoever wrote this is an emotionally unintelligent elitest. I grew up in a wealthy household. I could have any material experience I wanted. But something that I cherished far beyond any of these things were the rare times I had the undivided attention of my hardworking parents. As Paul McCartney said, “I don’t care too much for money. Money can’t buy me love”. And that’s the truth, brother.

    Reply
    • Danielle says

      June 2, 2019 at 9:32 am

      This is a crock of bull lol you kidding me right. Money buys you PLEASURE not happiness let’s get that OVERstood please. Im so sick of the masses talking about money when in reality currency holds no true value. People are killing themselves and other people for it and why. Because the government ties a knoose around your neck and let you roam slightly with just a little in your pocket to manage. Money doesn’t even buy you loyalty. You pay for partial loyalty like you do a lawyer or a litagator. As long as the case is swaying in their favor, money right they got your back. You go bellyup, welp sorry can’t no longer bless you with my services lol yall bug me out about this topic. If money bought happiness over privileged children would not talk back to nor harm there parents right or wrong. They would show gratitude for all they have been afforded and blessed with. The congregation and I need for you to go back to the drawing board with this one because fam you ARE the weakest link on this topic if you can equate happiness to something that when you parish you cant take it with you

      Reply
    • Lolatyou says

      November 28, 2019 at 7:15 am

      LMFAO you missed the point As usual idiot. Your parents weren’t wealthy. They had golden handcuffs. That’s not freedom. REAL money is freedom. REAL money works for you. Then those hardworking parents could live off the passive income and do whatever they wanted, had more balance, spent more time with you. Plenty of poor people work hard too and that still sucks. Fake rich. Next.

      Reply
  8. Mary says

    January 22, 2019 at 12:54 pm

    Financial Sumurai,

    Your article is well presented but reveals (to me) precisely what your values are, and what they are not.

    Money is apparently your God. Yes, it’s nice to have and alleviates a lot of problems in life, but if you really think about it, overwhelming debt comes from living beyond one’s means: Greed. Remove the issues that lead to debt, and the unhappy elements of life go away. Grateful people don’t think about money being their “Savior” because they have their priorities/values in place.

    Furthermore, I have plenty of money. Have had it for a very long time. While it contributes to paying the bills and taking vacations, etc., it also creates problems. Social problems. You mentioned in this article that wealthy people often donate to charities to alleviate guilt, or to avoid appearing as greedy. Are you freaking kidding me? Who are you to deduce what they are thinking? Has the thought occurred to you that wealthy people are human beings too? Did you ever consider that people money have no empathy, or an inability to recognize that not everyone is capable of amassing fortunes? If you will pay attention to your own words, even you are not exempt from creating the very social friction that often comes with being wealthy. Do you think happiness is living within a resentful society? Yes, that is some happiness there/S. It really comes down to values and what makes people happy. If you are ok with simply having money and not worrying about parking tickets, for example, then fine. But that is a very small part of the equation, imo. As so many others have said, happiness is a relative term. What you define as happiness may not be happiness to myself or the next person.

    Despite an ad infinitum, philosophical approach to this topic, I shall ask you an objective question: If money makes you happy, then why aren’t you more frugal? Why do not you not value the thing that makes you so happy and free? Money does not grow on trees. I question why you so freely pay tickets and toss your money around without reservation. You claim that you no longer have to worry, but it sounds to me like you are not being very smart with your money. Sounds like a Nouveau Riche approach to me. Easy come, easy go, I suppose, which is something else that money can buy: Ignorance. Sorry for speaking so bluntly or sounding rude, but I am calling it the way I see it.

    Reply
    • Starhugs says

      May 22, 2020 at 9:38 pm

      I was having the same thought while reading this. I did agree that money takes away stress. But overall, I too kept thinking okay he and I have different values.

      My financial situation improved after getting married. And I kept thinking wow now I can do this and that but I realized after like 8 months of this sort of lifestyle that you know what, it isn’t making me happy. I value being present, and healthy (as much as I can from whatever is within my control), and creative.
      While money helps me buy my grocery so I can try different recipes. The joy does not come from buying the items, it comes from being engaged in an activity.

      It comes from when I especially do it for others, help others out etc.

      I still believe that having a bit more money will definitely take away stress, but I do not expect happiness from it. I still have to practice my own values and count what counts to be happy.

      Reply
  9. Rama says

    January 7, 2019 at 2:52 pm

    I was having this discussion with a friend of mine and I will have to disagree with you. Money does not buy happiness but it can enhance or increase happiness. There is a difference between the two. I would define happiness as an intrinsic quality. If you are not inherently a person incapable of feeling happy no amount of money in the world will change that. If you are capable of happiness then sure money and resources can enhance that happiness but happiness and the ability to find joy is an internal quality. I get what you mean about the saying that money doesn’t buy happiness does get used to justify not having much money or to assauge guilt but there is some truth to it.

    Reply
  10. John says

    December 16, 2018 at 9:31 am

    Money doesn’t buy happiness, trust me I’m depressed as ever and my money is not doing anything for me. There are numerous people that are going through tough mental illnesses stop trying to say money buys happiness because it doesn’t, does it relieve stress? Yess it does. Other than that I’m not happy. Money doesn’t buy happiness, a family does

    Reply
    • Financial Samurai says

      December 16, 2018 at 11:12 am

      Well said. What are some of the things that are making you unhappy?

      Reply
    • lolAtyou says

      November 28, 2019 at 7:12 am

      Money frees you that’s It. Are you staring at the money expecting happiness to pop out?

      You still need to get help from others and figure out what’s going on. Money just gave you a clean slate. Don’t forget what it’s like to get screwed paycheck to paycheck at a job you hate that takes over half your time.

      Reply
  11. Eric Williamsone says

    June 3, 2017 at 3:36 am

    I completely agree with that. The period in my life where I have been most unhappy was a long stretch of unemployment. I had enough in savings for it not to affect my lifestyle too badly, but it was the feeling of insecurity and being a total outsider that made the experience so rotten. Obviously, unemployment and being poor are closely related, but I believe the social status this confers on one are much more important in determining how one feels about it than the lack of money in itself.

    Reply
  12. William Moore says

    March 22, 2017 at 1:41 am

    To be honest.
    I call bullshit… Only for one reason.
    I grew up dirt floor poor.
    And I’ll slap the shit out of anyone who tells me money can’t buy happiness.
    Money can buy security. And its really hard to be happy when you don’t know where your next meal is coming from.

    Reply
  13. John G says

    February 28, 2016 at 3:41 pm

    As the slogan says, all I ask is the chance to *prove* that money can’t make me happy!

    As the Beatles sang, ‘money isn’t everything, it’s true, but what it can’t buy, I can’t use”

    And as Sam says, one needs a certain level of income to thrive in a large city …. but after that amount (he says $200,000 a year, which is way more than most people even dream of), it’s all gravy, or a distraction.

    And without health, the money is less relevant – but better to be sick and rich than sick and poor.

    Some people have a talent for unhappiness whatever their income, and some the opposite. But freedom from worry has a value – and people have ‘worry points’ at different places.

    In sum: good column! I doubt that researchers deliberately skew results of surveys to make themselves feel better, but otherwise, lots of valid points here.

    Reply
    • Troy Dean says

      July 31, 2020 at 1:29 am

      Don’t jump off the Rails son

      Reply
« Older Comments

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *


n

Top Product Reviews

  • Fundrise review (real estate investing)
  • Policygenius review (life insurance)
  • Personal Capital review (free financial tools)

Financial Samurai Featured In

Categories

  • Automobiles
  • Big Government
  • Budgeting & Savings
  • Career & Employment
  • Credit Cards
  • Credit Score
  • Debt
  • Education
  • Entrepreneurship
  • Family Finances
  • Gig Economy
  • Health & Fitness
  • Insurance
  • Investments
  • Mortgages
  • Most Popular
  • Motivation
  • Podcast
  • Product Reviews
  • Real Estate
  • Relationships
  • Retirement
  • San Francisco
  • Taxes
  • Travel
Buy This Not That 728 Banner
  • Email
  • Facebook
  • RSS
  • Twitter
Copyright © 2009–2022 Financial Samurai · Read our disclosures

PRIVACY: We will never disclose or sell your email address or any of your data from this site. We do highly welcome posts and community interaction, and registering is simply part of the posting system.
DISCLAIMER: Financial Samurai exists to thought provoke and learn from the community. Your decisions are yours alone and we are in no way responsible for your actions. Stay on the righteous path and think long and hard before making any financial transaction! Disclosures