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does more money equal more happiness the
short answer yes
having money gives you the freedom to
live comfortably you can eat what you
want live where you want and have what
you desire go wherever and spend time
doing what you want to do without
compromise however the relationship
between money and happiness is not quite
as simple as we've historically assumed
research shows that money can
drastically improve happiness for those
who can't afford the basics shelter and
food
but once basic survival needs are
fulfilled money has less and less of an
impact on happiness a person who makes
fifty thousand per year is far more
happy than someone who makes five
thousand but someone who makes fifty
million per year isn't much more happy
than the person that makes fifty
thousand in the last century the
American income has tripled even
factoring for inflation we have bigger
houses more cars and fancier toys but
surveys show that happiness has stayed
the same
let's examine Maslow's famous hierarchy
of human needs on the bottom we see
physiological needs otherwise known as
food shelter breathing sex and sleep
above that we have safety love esteem
and self-actualization as we examine
this hierarchy we can see that the
higher you go on the pyramid the less
effect money has on the need this is the
very reason why money has a diminishing
return on happiness at a certain point
you can't buy more
Bill Gates once said I understand
wanting to have millions but once you
get beyond that it's all the same
hamburger
psychologists have discovered there are
essentially two types of happiness
extrinsic and intrinsic extrinsic
focuses on money and material wealth
image and status happiness derived from
these external sources result in a
short-lived dopamine spurt and the
never-ending state of wanting more
intrinsic happiness on the other hand is
derived from following a passion
personal growth making the world a
better place or loving relationships
with family and friends
intrinsic happiness generates a
long-lasting joy from within and is a
feeling that money simply can not buy
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