Can Money Buy Happiness?

Most Americans seem to think so.

A recent survey found that the majority of people believe money can, in fact, buy happiness.

This view is supported by decades of research linking higher income to greater life satisfaction.

But here’s the problem: There’s no clear finish line.

No matter how much we have, “more” always sounds better.

There’s no obvious point where we collectively agree, “That’s enough.”

Which means happiness—if it’s tied to wealth—becomes a moving target.

So instead of chasing a number, maybe the better question is:

How do we use the money we already have to maximize happiness?

Before we explore further... did you catch this week's podcast episode? 👇

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7 Pitfalls to Avoid If You Want to Stay Retired If you’re approaching retirement (or already there) and want to avoid common mistakes that force people back to work, this episode is for you. 🎙️ Listen now on ​Apple​, ​Spotify​, or ​YouTube Music​.

Buying Happiness

No amount of money can guarantee lasting happiness.

But at the same time, it’s hard to argue that more money wouldn’t help.

More money generally means more freedom, fewer worries, and more opportunities to enjoy life.

That tension—the idea that money doesn’t buy happiness, but more of it still sounds pretty great—is what makes the money-happiness connection so puzzling.

So maybe we’re asking the wrong question.

Instead of chasing more money in the hope it will make us feel better, what if we asked:

That question is exactly what researchers recently set out to explore.

In a global experiment, 200 participants from a range of backgrounds were each given $10,000 and told to spend it within three months.

The goal?

Measure how their happiness changed based on how they chose to use the money.

Here's what the researchers found.

The 5 spending categories that delivered the most happiness were:

1. Donating to a charitable organization
2. Buying an experience
3. Spending on personal care (e.g., gym memberships)
4. Spending on education (e.g., writing course, driving school)
5. Gift to an individual

What stands out?

Three of the five involve giving to (or spending time with) other people.

The other two?

They’re about investing in yourself.

In other words, happiness isn’t just about buying things—it’s about connection, growth, and meaning.

This research doesn’t hand us a formula. But it does point us in a helpful direction.

If we want to get more joy from our money, these are the areas worth leaning into.

That might not be everyone’s goal.

But if you're looking for a simple framework to guide your spending, this isn't a bad place to start.

So, here’s a question worth asking:

While there's no universal answer, a little reflection can go a long way.

To help, here are a few prompts:

• Are there causes or organizations you care deeply about that could use your support?
• What kinds of experiences could you add to your calendar—ones that create anticipation, joy in the moment, and lasting memories?
• How might you invest in your health, well-being, or skills in a way that compounds over time?
• Is there someone in your life who could benefit from a timely and generous gift?

You don’t have to act on any of these, but they’re worth considering.

Because at the end of the day, my goal is simple:

To help you use your hard-earned money to live your best life, whatever that looks like for you.

Stay wealthy,

Taylor Schulte, CFP®