The Pursuit of Wealth

The idea of financial stability is often desired by Americans, in hopes of gaining personal satisfaction. Many studies have discovered that there is an obvious connection between wealth and happiness within individuals. For example, a recent study by Stevenson and Wolfers concluded that “...the populations of rich countries, as a whole, were happier than the populations of poor countries” ( https://diigo.com/0758pt ). Those with a stable financial situation, predominantly the upper-middle class, experience less stress and are able to spend their money to benefit others, creating a more positive lifestyle. In terms of wealth, there is seems to be a “satiation point”, meaning that as a person’s wealth begins to increase there is a point where their happiness begins to level off. Stevenson and Wolfer (2008) concluded that the average salary in which people are considered happy is around $75,000, however, more research is needed to prove that there is indeed a “satiation point” ( https://diigo.com/0758pt ). Overall, through a social perspective, those earning a higher salary are more likely to live a happier life, without the stress of money that lower class individuals may experience.

Material Purchases Versus ExperiencesThe happiness of wealthier individuals, specifically those earning $75,000 a year or more, is based upon their purchased experiences rather than materialistic items. An article by Andrew Blackman (2014) suggests that paid experiences, such as a concert or vacation, offer long lasting happiness instead of a splurge on the latest technology ( https://diigo.com/0758q0 ). Additionally, Professor Gilovich, a psychology professor at Cornell University, found that experiences bring a sense of connection, especially those spent with other individuals, and can bring a greater idea of one’s identity. While purchasing an expensive item may give the consumer a sense of satisfaction, the results are short-lived and wear off after a few weeks. Likewise, The Wall Street Journal compared material purchases to experiential purchases and found that after two weeks post consumption, the experiential buyers were more grateful of their purchase than the material buyers were. However, many wealthy individual’s find it difficult to acknowledge their own fortunes and becoming easily consumed within their personal greed. Therefore, it is important to “slow [it] down by reminding yourself of why you value what you have” ( https://diigo.com/0758q0 ). By expressing a grateful attitude towards one’s earning and not being consumed in material purchases, it is easy for wealthy individuals to live a happy lifestyle.

The Price of DebtFurthermore, many wealthy individuals are less likely to become endorsed in high amounts of debt, meaning that they can easily pursue what they desire without the weight of monthly payments. A recent article by Business Insider, claims that “when you’re living with massive debt, it’s easy to put your life on hold” ( https://diigo.com/0758qb ) . Constantly being overloaded with multiple debts creates an unhealthy environment and leaves individuals feeling trapped, limiting their freedom. Also, when one’s financial life is under stress, it’s easy to become mentally and physically exhausted. Psychologist and executive advisor in Washington, D.C., Carole Stovall, states that “stress is one of the drivers for health conditions related to cardiovascular disease, allergies, diabetes (and) gastrointestinal disorders” ( https://diigo.com/0758qb ). As balance is restored in one’s financial life, the stress begins to disappear, leaving an individual free to spend their money as they wish. With that being said, a financially stable individual does not experience the hardships of debt, and therefore are able to live a fulfilling life.

However, it is important that middle-upper people do not take their wealth for granted. A research study conducted by Howell (2014) looked at the connection between spending and happiness among debt-free individuals. Many people who were once in debt may find it tempting to spend extra dollars on expensive goods, however, in the end, they come to the realization that “their bang for the buck is much smaller than they anticipate”, Howell states ( https://diigo.com/0758qb ). Although expensive purchases may feel satisfactory, the resistance to spend will result in a more long-term happiness and less debt. Therefore, those who are wealthy and do not experience the troubles of debt, are more likely to live a more satisfying and stress-free life.

Donating and HappinessOne of the most important reasons why wealthier individuals are more likely to be happier than the lower class is because of their opportunity to donate. Rather than spending money for personal entertainment, an experiment by Elizabeth Dunn, a social psychologist of University of British Columbia, discovered that those who donated money to others were found to be more happier than those who spent their money elsewhere. Her study was conducted with 46 college students, each given either five or twenty dollars ( https://diigo.com/0758qw ). The results showed that donating and happiness were directly proportional, mirroring Dunn’s other two surveys conducted with 632 people in the United States. It can be concluded that those who have a high status of wealth are more capable of spending their money to benefit others, unlike the lower class who may find it more difficult to donate their spare money. Overall, wealthier individuals who utilize their earnings towards donation are found to be much happier than those who purchase items for personal use.

More Money and Less StressAfter thorough research, it is concluded that wealthier individuals or those with a stable financial life are more likely to be less-stressed and live a happier lifestyle. Spending their money on useful and enriching purchases has proven to leave a long-lasting effect of happiness. Similarly, the freedom of being debt free and donating their money has proven to be more beneficial to an individual's happiness. In a recent article, Dayana Yochim states that “the wealthy enjoy an intangible benefit that often eludes the paycheck-to-paycheck worker: a sense of control over their lives” ( https://diigo.com/0758r4 ) . Because the lower class has more financial struggles than the upper class, it is easier for the lower class to live under stressful conditions. In contrast, wealthier individuals have proven to be less stressed because of the absence of money issues, leading to an overall happiness.