44: Can Money Buy Happiness? Let's Get Real About What Actually Makes Us Happy

Happiness—it's one of the most overused and least understood words in the English language. What does it even mean to be happy? Is it fleeting contentment? Lasting satisfaction? A matter of having everything you want, or simply not wanting anything more? As elusive as it sounds, the quest for happiness is universal, and people have been chasing it for centuries. The Greeks called it eudaimonia (human flourishing), the Buddhists call it ananda (bliss), and modern self-help books call it, well, "The Secret."

In a world where "happiness hacks" and "life hacks" fill our feeds, we're left to wonder: does anything actually work? Let’s dive into the science, the misconceptions, and the not-so-secret ingredients that might just get us closer to happiness. Spoiler: it’s not as simple as a fat bank account, but money does play its part.

You’ve probably heard of the "magic number" for happiness—$75,000 a year. This comes from a 2010 study by Daniel Kahneman and Angus Deaton, which found that beyond an income of $75,000, people don’t report significantly higher levels of emotional well-being. It suggests that money can buy happiness, but only up to a point.

Think of money as a reliable pair of sneakers: it’ll get you places, keep you comfortable, and protect you from a few hard knocks, but it won’t transform the journey itself. With financial security, basic needs are met, and we gain a buffer against stressors like illness or sudden expenses. But does it fuel that warm glow of happiness we crave?

A 2021 study from Matthew Killingsworth challenges this notion, suggesting that happiness can actually increase with income beyond $75,000, at least for some people. But the kicker? The relationship weakens over time, showing that more cash brings diminishing returns on happiness. The first hundred grand may give you peace of mind, but your third mansion? Not so much.

When we talk about happiness, we often confuse it with satisfaction. Happiness is a state of feeling good in the moment, while satisfaction is a more stable sense of fulfillment over time. Happiness is short-term—a fun night out, a delicious meal, a spontaneous road trip. Satisfaction is what you feel after reaching a long-term goal, like completing a marathon or getting that promotion.

Take satisfaction as the foundation of a house and happiness as the furniture and decor. You can add as many stylish pieces as you like, but if the foundation’s shaky, the house still won’t feel right.

Ever notice how quickly we get used to something we once desired? Psychologists call this the "hedonic treadmill." You get the new car, the promotion, or the dream house, and sure, it feels great—at first. But within weeks or months, the thrill wears off, and we’re back to our baseline happiness level, looking for the next upgrade. We adapt to good (and bad) things surprisingly fast, which is why a new smartphone or a raise won’t bring lasting happiness.

For example, consider lottery winners. Studies show that, after the initial excitement, their happiness levels generally return to baseline within a year. Ironically, a similar effect happens to people who experience sudden tragedies. In the long term, we’re just wired to adapt.

So if more stuff and status don’t bring us happiness, what does? Research suggests that a few universal pillars seem to foster well-being.

1. Strong Relationships: Harvard's Study of Adult Development, one of the longest-running studies on happiness, found that close relationships are the strongest predictor of long-term happiness. Having people to share our highs and lows with boosts our emotional resilience, and it’s a happiness boost that money can’t easily replicate.

2. Purpose: Meaningful work and a sense of purpose can turn life from something we simply "get through" into something worth pursuing. Whether it’s a job, a hobby, or volunteering, having a purpose anchors our days and makes even difficult tasks feel worthwhile.

3. Gratitude: Multiple studies indicate that practicing gratitude can significantly boost happiness. Reflecting on what we have, rather than constantly striving for more, keeps us grounded and content. Think of it as a mental workout for positivity: daily reps of appreciation make a big difference over time.

4. Mindfulness: Learning to stay present helps reduce the anxiety of “what if” thoughts and the regret of “if only” thoughts. Mindfulness practices, like meditation or even just taking time to notice the small things, train our minds to focus on the moment, which research shows boosts overall well-being.

5. Physical Health: The body-mind connection is real. Regular exercise, a balanced diet, and enough sleep are all crucial not just for our health, but for our mood. Physical well-being boosts emotional well-being, and the effect is hard to overstate.

Maybe happiness isn’t a permanent state—it’s a combination of fleeting moments and lasting satisfaction. Instead of seeking to feel happy 24/7 (spoiler: impossible), the goal might be to accept a range of emotions as part of a full life. After all, a well-lived life has ups and downs, just like a good novel. No one reaches a “happily ever after” where problems disappear; we’re all just finding joy where we can, and learning to cope when it fades.

In the end, happiness is more like a rainbow than a pot of gold. You can chase it, but it often appears when you’re busy with other things. Or, in other words: if you want to be happy, don’t make happiness the goal—make life the journey worth showing up for, rain or shine.