Why Your Income Has Very Little to do With How Happy You Are
by www.SixWise.com
There's a reason why most of us have entertained the notion
of winning the lottery, pulling the winning pull at a slot
machine or bringing home the grand prize at any number of
other sweepstakes. That extra $5 million, or even $5,000,
holds the promise of an easier, happier life, right?
As it turns out, the old adage that "the best things
in life are free" was right after all. The widely held
belief that money brings happiness is an illusion, according
to new research published in the journal Science.
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"The relationship between money and happiness
is pretty darned small," says Peter Ubel, a professor
of medicine at the University of Michigan.
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Higher Income Doesn't Lead to More Happiness
The researchers used a series of surveys to find out that
income has very little effect on moment-to-moment happiness.
The first, conducted in 2004, asked over 900 employed women
to record their mood throughout the previous day's activities.
They then correlated the percentage of time each woman spent
in a bad mood each day to income. While it was thought that
those who earned under $20,000 would be in a bad mood 32 percent
more of the time than those who earned $100,000 or more, it
turned out that the low-income group was in a bad mood only
12 percent more of the time.
In 2005, a second survey recorded women's overall satisfaction
with life, along with their satisfaction from moment to moment.
They found that a higher income was less related to momentary
happiness than it was to overall life satisfaction.
However, the researchers say people may risk placing more
emphasis on income when looking at overall life satisfaction
simply because they are focused on that individual factor
when the question is posed, and are evaluating their life
based on conventional achievements.
"People do not know how happy or satisfied they are
with their life in the way they know their height or telephone
number," said the authors. "The answers to global
life satisfaction questions are constructed only when asked,
and are therefore susceptible to the focusing of attention
on different aspects of life."
Unrelated studies have found similar results, including one
by Ed Diener, a University of Illinois researcher, who found
that extremely wealthy individuals on
the Forbes 400 have the same level of happiness as the Maasai
herdsman of East Africa.
More Money? Less Free Time
Think of the rich and you'll probably picture days spent
lounging by the pool, playing golf or zipping around town
in a new Ferrari. But, in reality, those who earn more tend
to have less time to do what they want.
In fact, the researchers conducted a nationwide survey and
found that those with higher incomes devoted more time to:
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Work
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Compulsory non-work activities (shopping, child care,
etc.)
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Active leisure (exercise, etc.)
Meanwhile, they spent less time engaging in passive leisure
activities such as relaxing or watching TV.
"When someone reflects on how more income would change
subjective well-being, they are probably tempted to think
about spending more time in leisurely pursuits such as watching
a large-screen plasma TV or playing golf," the authors
pointed out. "But in reality, people should think of
spending a lot more time working and commuting and a lot less
time engaged in passive leisure and other enjoyable activities."
"If you want to know why I think poor people are not
that miserable, it is because they are able to enjoy things
that Bill Gates has not been able to enjoy, given his schedule
at Microsoft," said Alan Krueger, a professor of economics
and public affairs at Princeton University and an author of
the study.
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When you do spend money, research shows that you'll
be happier overall if you spend it on life experiences
rather than material possessions.
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"Things" Don't Equal Happiness
"People grossly exaggerate the impact that higher incomes
would have on their subjective well-being," Krueger points
out.
Part of the problem is that people associate more money with
more things -- but those things, while increasing happiness
in the short-term, will not impact your overall happiness.
When it comes to winning the lottery, for instance, "they
focus on all the things they would buy, without recognizing
that does not contribute all that much to their well-being,"
Krueger said.
How to Create More Happiness, Regardless of Income
If money doesn't lead to happiness, then what does? People
receive more enduring pleasure and satisfaction from investing
in life experiences than material possessions," says
Leaf Van Boven, assistant professor of psychology at the University
of Colorado at Boulder.
So if you have to choose between an expensive piece of jewelry
or a vacation to Italy, you'll be better off in the long-run
with the latter. Meanwhile, creating more time to do whatever
it is that you love is a must to being happy, as is making
time to be with those you love. In a past article we've compiled
a list of 21
no- or low-cost things you can do to put a smile on your loved
one's face, which is guaranteed to leave you feeling happy
inside too.
Recommended Reading
Spending
Your Money on Doing Things vs. Owning Things Will Make You
Happier
Married
Men Really are Healthier & Respond Better to Certain Treatments
Sources
Science
June 30, 2006: Vol. 312. no. 5782, pp. 1908 - 1910
University
of Michigan News Service June 29, 2006
Washington
Post July 3, 2006
Forbes:
Now it's a Fact: Money Doesn't Buy Happiness
LiveScience.com
June 29, 2006