The relationship between wealth and happiness is complicated.  People are always excited to hear (and share) snippets of research that seem to indicate that money doesn’t buy happiness. It is comforting to believe that happiness and wealth are not related because it means we don’t have to keep trying so hard to make a buck.  But in reality, the relationship is not so clear cut.

Unfortunately, research findings that are counterintuitive are much more exciting (i.e. more likely to get published, more likely to get covered in the media, and more likely to be talked about at cocktail parties) than research that shows what everyone already expects.  And then the media tends to exaggerate those counter-intuitive elements to make it even more newsworthy. You may have heard, for example about the research that shows that lottery winners end up back at the same level of happiness within a year after their life altering event.  But you probably never heard of other research (here and here) done on money winners that showed they did, in fact, rate themselves as happier afterward. The reaction to sudden wealth is complex.  For some people it affords them opportunities to pursue their dreams, for others it alienates their close relationships and rocks the foundations of their identity.  There are no easy answers. Read more…