Higher Income and Happiness

This self help article is written by Gene Pinder.

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Why do people want more money?

Philosophers, economists, and researchers have been pondering that question for hundreds, if not thousands, of years. One reason for the question - more money does not contribute that much to a person's happiness.

If that is true, then why do people want more money?

There could be several explanations, according to researchers.

First, it could be that people don't realize more money will not raise their well-being. The research in this area has not been well-publicized or distributed. However, this belief is suspect since in many studies most people say that money is not that important in their hierarchy of values.

It could also be that people enjoy the goal of attaining higher incomes more than the money itself and what it represents. Goals have proven to be a valuable resource for happiness building. In fact, some researchers believe that goal-setting is one of the most important tools for improving one's well-being.

One other explanation, according to researchers, is that people may seek money because it produces short-terms benefits, even though a person's long-term happiness does not move. This belief is consistent with the "hedonist" train of thought in which people's behavior is believed to be driven more by the pursuit of stimulation and pleasure than anything else.

And finally, people may feel a strong need to acquire money, goods and services simply because of societal pressure. Individuals may feel they need to buy things to gain status and not be perceived as failures. The "high-end" and luxury market of goods and services serve this need well.

Whatever the reason, the research remains pretty strong - once a minimum level of existence or income occurs - higher income has only a modest impact on a person's long-term happiness.