Role of Money in Happiness - Does Money Influence Personal Well being

The enduring debate surrounding the relationship between money and happiness has captured the attention of philosophers and social scientists alike, prompting an ongoing discourse on this complex subject (Dunn et al., 2020). Over the years, the question of whether money can truly buy happiness or whether it remains an unrelated entity has intrigued minds worldwide. Historically, the prevailing consensus leaned towards the belief that money held no significant sway over happiness. However, a more nuanced perspective began to emerge, one that acknowledged money’s role in providing individuals with a heightened sense of control over their lives, an expanded array of choices, and an increased sense of personal autonomy. The seminal Easterlin paradox, introduced in 1974, added another layer to this discussion. It posited that while happiness is positively correlated with income both among and within nations at a given point in time, this relationship does not persist as income continues to rise over time (Easterlin, 1974). In essence, the paradox challenged the assumption that economic growth inherently leads to greater life satisfaction and happiness, a viewpoint that had long been ingrained in societal thinking (Leonhardt, 2008).Some suggest that while money may not directly bestow lasting happiness, it does matter due to the social comparisons it invites. The present study embarks on an exploration of the intricate connection between money and happiness. It does so by conducting a survey involving a sample of 203 respondents, primarily drawn from middle to higher-income groups. The results provide substantiated evidence that money indeed plays a significant role in the pursuit of personal happiness. However, it is imperative to acknowledge the study’s limitations, including its reliance on a relatively small sample size and the absence of a more representative representation of individuals from lower-income groups. These factors underscore the ongoing complexity of this relationship and call for further research to gain a more comprehensive understanding of the interplay between money and happiness across diverse socioeconomic strata.