MONEY MATTERS DOES MONEY BUY HAPPINESS? WELL, YES… AND NO

WRITER: ELLEN B WILCOX, GEPC

Many years ago when my business was new and I seemed to be earning less than business expenses were demanding, my late husband quoted his recently deceased 90 year-old mother, an Iowa farm girl: “Money isn’t everything, but it’s mighty unhandy without it.” I never knew my mother-in-law, but I have often remembered that quote over the past 31 years.

In researching this article, I talked with more than a dozen men and women from all economic levels and from across the U.S., asking them each the question headlined above. Without exception, they all answered a resounding, “NO, but….” So, what follows the “but”?

Webster defines happiness as “something characterized by joy, pleasure, enthusiasm.”

I would add to that the following: happiness is both an external and internal joy, a sense of wellbeing, as well as an obvious absence of misery.

So where does money fit into this picture? Most will agree that true happiness lies within. There is nothing that “makes” us happy. We have to “be” happy. As a financial advisor for more than thirty years, I have counseled both those struggling to make ends meet and those with vast fortunes. Over the entire spectrum, happiness could never be measured by pure dollar amounts. Two stories specifically come to mind.

I remember a divorced mother of two young boys who was working for meager pay, but investing regularly, albeit a very small amount. She was one of the happiest people I have ever met. She was joyfully managing her home and her job on a shoestring budget, while coaching her beloved sons’ championship soccer team and also competing in an adult women’s soccer league. This woman was happy! She glowed from within. It wasn’t long before she got a promotion and started moving up the ladder toward financial security.

At the other end of the scale, I received a phone call one morning from a professional associate, the wife of a Silicon Valley mega-millionaire. Her husband was founder and CEO of a major Valley corporation. She, too, had been a significant part of the company’s success. She had called to tell me they were divorcing after 28 years of marriage. Then she added, “Yes, well, you’ll be interested to know that the problem is money… too much of it, and we can’t decide how to use it!”

Without a doubt, both of these anecdotes support the contention that money, indeed, does not buy happiness, but…

The single most important thing that money buys is choice! Without money, our choices are more limited. The more money we have, the more choices are before us. Ah, now here lies the rub!

With money, comes responsibility; the responsibility to use it wisely for our own benefit and, if there is enough of it, for the benefit of others, too. A basic tenet in financial planning is to spend less than earned. Even for the not-so-rich, it is vital to maintain perspective and to plan ahead for what is needed, what is wanted, and what may suddenly appear on the horizon unannounced.

Money definitely does not buy health or longevity. We all know of supremely wealthy folks who have died of insidious diseases or under dreadful circumstances: The billionaire whose mother died of cancer at 60. The millionaire rock star who died of an overdose. The young son of famous and wealthy parents who died in a plane crash. The super wealthy who met their tragic end as the Titanic sank.

Money does not buy love, though many have tried. (Pick up a copy of the latest issue of the National Enquirer at your local supermarket!)

Money does not buy time, and time is the single irreplaceable asset! (That is food for serious thought, folks!)

All of this being said, money does buy a lot that is of value. For a devastated population, money may buy the diminishing or the eradication of misery, suffering, disease, and pain. Think about the money which funded Jonas Salk’s research that ultimately helped erase polio worldwide. Think about the myriad charities funded by real dollars that support the well-being of multitudes. Think about the millions of dollars flowing into research for heart disease, breast cancer and other similar medical efforts.

Money buys security and peace of mind to know that the everyday demands of life are likely to be met.

Money buys shelter, comfort, warmth, and other pleasures of home and hearth. Money buys gifts to please others. Money buys freedom from hunger and cold. Money buys education, books, computers, and learning tools to launch a productive future for youngsters.

Money buys leisure time and the ability to use it as one chooses.

Money buys pleasurable activities such as a family vacation, a trip to visit loved ones, a boat, or a more reliable auto. All of these and more add to the joy of daily living.

Money also buys position and status. Position leads to prestige, and prestige often leads to power! When money is used in this manner, it carries enormous responsibility and must be used with great caution to avoid abuse. (Isn’t this painfully evident in our current political processes?)

With all that money can buy, how much is enough? The

Huffington Post published a study conducted by Princeton University in 2008 and 2009 for the Gallup-Healthways Well-Being Index that surveyed more than 450,000 Americans. The results showed that a sense of well-being (call it happiness?) increased as income increased…up to $75,000/year. (There’s that “but…” again!) Less than $75,000/year and the rigors of daily life are burdensome to most and individual joy is diminished or absent altogether. While happiness appears to plateau above $75,000, a feeling of success does create a feeling of having a better life overall.

To wit: it is incorrect to assume that happiness increases with wealth and material possessions. Whole books have been written on the subject. Interesting and often funny quotations regarding money and happiness abound. One of my personal favorites is attributed to Brigitte Bardot: “If you think money can’t buy happiness, you don’t know where to shop!”

I’ll leave you with that thought!