Money Can Buy Happiness BUT... (The truth no one will tell )(philosophiesforlife)

We make money because we think that with more money, we can be confident, be respected and be happy. But do we need money to be happy? The real truth no one tells us about making money is that beyond a point, more money can decrease the level of happiness.

According to the research conducted by the Princeton University, that happiness and income are correlated, but only up to $75,000.The emotional well-being of a person rises as annual income increases up to about $75,000, but not further than that. This makes sense because people who make significantly less than $75,000 spend a lot of their time worrying about basic necessities like having enough food to eat and covering the rent. Money can pretty easily alleviate those kinds of stress. So boosting one's income up to around $75,000 can help. But as wealth rises, happiness level remains the same. In fact, happiness might tend to decrease. Part of the diminishing-return effect can be explained by adaptations — as wealth rises, people adjust or get used to their new and better circumstances. This increases their expectations and aspirations. For example, a newly rich person moving to an upscale neighborhood will make the acquaintance of other people who seem even wealthier, and that can diminish happiness. He may be driven to increase earnings by comparison to others or a desire for material gains.

This video also answers one of the biggest questions is how to allocate our money? the truth is, often when we buy that new pair of shoes or new car, we regret our purchases because we feel we may have made the wrong choice, or that we have spent too extravagantly, or something better will be available in the future. This feeling is called “buyer’s remorse. The reason for this is that when we buy objects they are easily interchangeable with other objects. We get a brand new car, but there’s a new model out within the next 6 months. Material things tend to eventually become out-dated or broken. We get an initial boost in mood when we first buy them, but it quickly dies off. “One of the enemies of happiness is adaptation,” says Dr. Thomas Gilovich, a psychology professor at Cornell University who has been studying the question of money and happiness for over two decades. Gilovich and other researchers have found that experiences—as fleeting as they may be—deliver more-lasting happiness than things.