Can money buy happiness?

I still remember. Tuesday morning. Treasury tutorial. Someone (actually my tutor, who shall not be named due to confidentiality reasons) wrote a formula on the whiteboard which has got nothing (maybe something) to do with her lesson.

It reads: "Money = Happiness."

If someone said that to you, what would you do? Nod your head in agreement? Or say “No!” and say “happiness comes from within”, or that “happiness lies in contentment.” Or stay silent?

I sprung into action. I offered my school of thought. I said that the decade-old formula is flawed. Very flawed.

Before I could explain, she goes on the defensive. She goes on and labels me as an idealist.

I know, at that very moment, money can never buy happiness. Come on, man! Don’t kid yourself! Let’s get real. It’s not that simple.

If money equals happiness, then Lee Hsien Loong would be a very happy man, earning over $3 per second. Yes, per second. Does that makes him a happy man? I don’t know, but high likelihood is that he isn’t.

The fact is: Money cannot buy happiness. It’s just a commodity. A tool to make life just a little bit easier to live in.

The paradox about money is that the more you make, the more you want. And the more you have, the less effective it is at bringing you joy.

I did my research. I thought hard. I asked around. And my theory says money, in its absolute term, does not equals happiness.

I will share 3 reasons.

1) Hedonic Treadmill.

This is a term that economists have used, eons of years ago. How humans, can never actually be happy. The reason is simple. We are all adaptable creatures. We adapt fast to our situations. Point is, if good fortune comes your way, you can never be satisfied for long.

Lets say you want to buy yourself a dream car. You say if you get that car, you would be the happiest man on earth. While saying that, you are lying to yourself. Really. Why? Because once you get that car, slowly, you will get used to it. You adapt to your new possession. And then, as weeks pass, it starts to lose its ability to make you as excited as you were when you were imagining of getting that car. The thrill is gone. Then, you start questioning your choice. Say you thought you bought the wrong model. You buy another car. And the cycle repeats.

Hedonic treadmill is in action, guys.

2) Quest for money brings more stress.

I think almost everyone would agree with me. It is baffling what people would do for money. The best part is how people actually suffer to get money. Yes. They work. And they suffer. How many people actually love their jobs? That their pay is just an incentive? The common man down the road would hate to go to work but would tell himself, “Don’t worry. I would be paid. I would get money”. He is actually using money as a form of reward. Aint that sad? But that’s what happening in the world today. Don’t believe? Just ask me.

3) The Art of Relativity

Human beings, being human beings, simply looove to compare. And this is why they are never happy.

Since young, our mothers scold us.

“Why get only 60 marks for your English test? Your brother last time not like you! And Makcik Bedah’s son (your neighbour, whom you played soccer with at the void deck) scored 90 marks! I regret giving birth to you!”

Ok. The last part was over-exaggerated but, you know what I mean. The art of comparing which never dies in the human race.

And we do that in the financial world too.

Let’s say you are now having a good-paying job. $9 per hour. You are happy. And then, one afternoon, you are sitting with some friends over kopi. And then, you talk about pay. And you discovered he earns $12 per hour.

WHAM! BAM! THANK YOU RAM!

Your heart starts to beat a lil faster. You then start asking questions about his job. And finally, you end it with the golden question: “Is there still vacancy at your place?”

Why?

Because you want his job. You envy him. You want to beat him!

Money, simply does not equal happiness because how you stand relative to others makes a much bigger difference to your sense of well-being than how much you make in an absolute sense.
So, there you go. 3 solid reasons why money does not equate to happiness.

But I would be stupid to just end it like this.

Because another small side in me says that money can actually buy happiness, BUT it does not stand unconditionally.

Money can buy happiness, ONLY if you spend it the right way.

Money, although just a tool, is still a very powerful tool.

Although many life experiences cannot be bought, for everything else, there’s money.

Why am I mentioning experiences?

Because experiences will truly make you happy. Not momentarily. Permanently.

Money will allow you to “buy” some experiences.

Like going to France for a vacation with your family. Or going to Switzerland for a honeymoon with your wife.

Then, after it all ends, after splurging all your money, you can look back and reminisce. Now, wouldn’t that make you truly happy?

This is the advice that I have for myself. It’s not about having things, but doing things that will keep you happy.

What kind of things, you ask. Whatever that makes you happy.

In that aspect, money has some part to play. (Note: "Some")

I’ll end it, and so:

Money can buy happiness, ONLY if you spend it right.

- Feedback are much welcomed.