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Does cash make you cheerful?

by Index Investing News
February 2, 2025
in Economy
Reading Time: 2 mins read
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Research of happiness usually discover a optimistic correlation between revenue and subjective well-being. Put merely, wealthy folks are usually happier than poor folks.

After all, correlation by itself doesn’t show causation. Previously, I’ve prompt that the optimistic correlation largely displays reverse causation. Blissful personalities are prone to be extra motivated and able to incomes cash.

Lyman Stone lately directed me to a examine displaying that genes linked to larger revenue are related to a lot better psychological well being.

The examine checked out two units of genes, one related to larger ranges of schooling and one other related to extra revenue for any given degree of schooling.  (Presumably the latter are linked to different traits, reminiscent of work ethic, self-control, ambition, charisma, prudence and different qualities which can be helpful in incomes more cash.)  

To be clear, I’m not suggesting that cash has no influence on happiness.  Relatively, I imagine the influence is pretty small, and that many of the noticed correlation between wealth and happiness comes from the truth that sure kinds of individuals are each extra prone to change into wealthy and extra prone to have blissful personalities.

I’ve spent a number of years in every of the 5 main revenue quintiles, and I’ve by no means observed any influence on my happiness from transferring to a unique revenue class.  My happiness degree appears to mirror my innate character, not my revenue.

PS.  For many years, philosophers have debated the query of happiness.  What’s it?  At age 69, I really feel like I’ve lastly found the reply.

 



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