Many of us feel the need to be earning more money.

Having a higher income can give access to homes in safer areas, better healthcare options, higher quality nutrition, more fulfilling work, and often more leisure time.

But it only works up to a certain point. Once our income reaches a certain level and our basic needs are met, the positive effects of more money are often offset by the negative effects.

Like working longer hours, or working more stressful jobs trying to maintain that income level.

Let’s talk about whether money can buy happiness or not.

Can Money Buy Happiness?

Money is unlikely to buy us happiness, but it may help achieve a base level of happiness to an extent, look for purchases that may help you feel fulfilled.

We can find happiness through non-financial means, like spending time with people you enjoy being around, or even just thinking about the good things in our life.

Can You Rent Happiness?

Psychologist Sonya Lyubomirsky has spent her career studying happiness, and she recommends renting happiness. She says instead of spending extra on a better car, try renting a sports car for a weekend getaway.

That might sound expensive, but it’s cheaper than buying the sports car, and gives you a memorable experience that won’t wear off. Studies have shown that our excitement over new purchases goes down quickly after we’ve become used to those new purchases.

What Are Some Things Money Can’t Buy?

• Good health.
• True friends.
• More time.
• Morality.
• Finding a new passion.
• Appreciation for the little things.

Tips for Spending Money Wisely

• Track your current spending.
• Avoid the use of credit cards, or pay off the monthly balance.
• Stop worrying about impressing others.
• Recognize which habits drain your budget.
• Learn to value savings over new products.
• Think about the long-term benefits of non-essential purchases.

How to Save Money

• Keep track of your spending, record your expenses.
• Determine your financial priorities.
• Eliminate your debt.
• Include saving in your budget.
• Find ways to cut spending.
• Set savings goals.
• Pay yourself first.
• Separate your wants from your needs.
• Pack your own lunch.
• Stop smoking.
• Consider a staycation.
• Check your insurance policies, compare options.
• Be careful about spending on periodic purchases, like gifts and vacation.
• Cut or downgrade your services.
• Make saving automatic. Save regularly.

How to Change My Bad Spending Habits?

• Make a budget.
• Evaluate every purchase.
• Use what you have.
• Plan your meals.
• Reduce excess beverages.
• Shop with a goal in mind.
• Pay yourself first.
• Delay gratification.
• Challenge yourself to reach new goals.
• Avoid fees and extra charges.
• Avoid spending money at restaurants.

How Should a Beginner Budget?

• Make a list of your values. Put your values in order.
• Set your long-term and short-term goals.
• Determine what your monthly income is.
• Determine what your set expenses will be.
• Try tracking your expenses for a month.
• Create your personalized budget.
• Pay yourself first.
• Avoid credit cards.
• Check your progress and make adjustments.

How to Spend Your Money to Make You Happier

• Buy experiences, not material goods.
• Spend money on other people.
• Treat yourself.
• Rent happiness.

Final Thoughts

Most can agree money can’t buy happiness on its own.

But money can help in many ways, and as is often heard, it doesn’t hurt, and besides, poverty doesn’t buy happiness either.

We can use our money in ways that improve our world around us, and in turn provide us with genuine feelings of happiness and well-being.

Our money is even better spent if we take the time to appreciate the objects of our spending, whether it’s experiences or material things.

Many of us have a complicated relationship with money and there are more layers to dissect here.

Tell me what you’d like to see discussed in a potential upcoming post about psychology and personal finances.

Read More:

Does Money Buy Happiness