Hello there, brave explorer of the financial wilderness! Welcome to our cosy corner where we dissect the big questions around money, life and everything in between. Today, we are tackling an age-old debate that has sparked countless coffee-shop conversations and endless family arguments: Can money truly buy happiness? And to offer some professional insight, we’ve invited a psychologist to weigh in.
Most of us grew up hearing the phrase, “money can’t buy happiness,” often used as a gentle reminder from our parents or teachers that there are more important things in life than accumulating wealth. Yet, as we’ve grown older, we see our world drenched in financial considerations. Money plays an essential role in our ability to live comfortably, to access quality education and healthcare, to travel and explore, to indulge in life’s pleasures – the list is as endless as a Johannesburg traffic jam.
But does having more money necessarily mean more happiness? Our psychologist guest points out that it’s not as clear-cut as you might think. They underline the crucial difference between money’s ability to decrease unhappiness versus its power to increase happiness.
Think of it like the weather. Just because getting rid of the rain (or in South African terms, load-shedding) can make us less miserable, it doesn’t mean a blazing sun will make us ecstatic. Similarly, while financial stability can alleviate stress and worry, once our basic needs are met, additional wealth doesn’t always translate into extra happiness.
This perspective is supported by a well-established concept in psychology known as the ‘Hedonic Treadmill’. It suggests that, after reaching a certain income level (studies generally peg this around $75,000 or about R1 million a year), further increases in income have a minimal impact on happiness levels. In other words, once you’re comfortably off, a holiday home in Plettenberg Bay or a shiny new luxury car may bring temporary joy, but they’re unlikely to elevate your overall, long-term happiness.
Does that mean we should all stop pursuing wealth? Not necessarily. Money, our psychologist friend argues, is a tool that, when used correctly, can indeed contribute to our happiness. It’s about how you spend it that counts. Instead of splurging on extravagant purchases, investing in experiences, giving to others, or using money to free up time can lead to greater long-term happiness.
There’s a special kind of joy in treating your loved ones to a day at Gold Reef City, donating to your favourite local charity, or even just hiring a cleaner so you can reclaim your weekends from the grips of housework. By shifting our focus from earning more to spending wisely, we can extract more happiness from every rand.
So, can money buy happiness? As is often the case, it’s not a simple yes or no answer. Money can help alleviate unhappiness by providing stability and security. But after a certain point, more money doesn’t automatically equate to more happiness. Instead, it’s how we use our wealth that can enhance our joy in life.
The message is clear: pursue wealth if it is your aspiration, but remember that it’s not the size of your bank account that will bring lasting happiness, but rather how you use what you have to enrich your life and those around you. This is a truth that holds whether you’re in Cape Town, Johannesburg, Durban, or anywhere else across our beautiful Rainbow Nation.
Until next time, keep exploring the financial wilderness, and remember to bring along some happiness for the journey!
