Is the old saying “money doesn’t buy happiness” correct? Studies show it is true that money does not buy happiness. Wealthy people might not be happy.

People living in poverty might discover a brighter world if they suddenly receive a windfall or an extra income. Sudden wealth will make an enormous difference to the lifestyle of the poor; however wealth does not guarantee poor people will be happy.

Whether you are rich, poor, or middle class a sudden increase in the amount of money at your disposal may not increase your chance of happiness.

How much Money do you need to be Happy?
If happiness depended on the amount of money that you had at your disposal every rich person would be happy. Many rich people are not happy. Rich people are capable of feeling as suicidal and depressed as poor people sometimes feel. Having plenty of money does not assure you that you will be happy.

David Gilbert, a Harvard University psychologist, says “psychologists have spent decades studying the relation between wealth and happiness.” Some studies produced interesting conclusions. For example in one study, people were asked to rank personal happiness on a scale of 1 to 7. American multimillionaires averaged a score of 5.8 on the scale of 1 to 7. Not only did the American multimillionaires rank their personal happiness at below 7, but their happiness level was the same as the Masai cattle herders of Kenya.

Does Material Wealth equal Happiness?
The Australia Institute’s Clive Hamilton found low income earners feel more satisfied and prosperous then high income earners. Although the standard of living has increased since the 1950’s people are no happier today than they were 60 years ago.

A World Value Survey, published in the British magazine New Scientist, surveyed people from 65 countries. The happiest people come from Puerto Rico and Mexico. The most optimistic people come from Nigeria and Mexico. The people in these countries do not have a great deal of material wealth, but they know how to be happy and content.

Is Wealth a State of Mind?
Do you consider yourself to be wealthy? Some people will consider themselves wealthy if they have enough money to pay bills, enjoy recreational activities, and save for the future. Other people will always want more. If you require a nicer home, a more expensive car, a better holiday, or a larger investment portfolio, you may never be happy no matter how much money you acquire. To be happy you must accept the life that you are living and be appreciative for all of the things that you have.

Harvard studies show that wealth cannot buy happiness, but people who are happy are more likely to earn higher incomes than people who are unhappy. Happiness gives you more self-confidence. People who are happy are usually more productive at work and are more likely to be promoted.

A happy person will focus less on the negative things in life and more on the positive. By keeping your focus positive your chances of making a success of your business, your career, and your family life will improve. A happy person is a wealthy person because he has discovered the things that are most important in life. Money may not buy happiness, but being happy makes you wealthy.