“Money doesn’t buy happiness.” We’ve heard this phrase since childhood. But why do we all strive for money then? Why does poverty oppress, and the rich cry no less than the poor? The question about the connection between money and happiness has been troubling humanity for millennia. In 2026, when the world survived a pandemic, inflation, and a crisis of trust, it became even more acute. Let’s figure out where the truth lies and where the myths are.

Easterlin’s Paradox

In 1974, economist Richard Easterlin discovered an odd pattern: in poor countries, happiness increases with GDP growth, but after reaching a certain level (about $20,000 per capita income per year), happiness stops growing. That is, Americans in 2026 are no happier than in the 1970s, despite their income having grown several times. Explanation: people compare themselves to their neighbors, not to the past. As soon as basic needs are met, further wealth does not bring joy. Status, respect, friendship become more important. And money often destroys these connections.

How much money is needed for happiness

Studies from 2025 (a survey of 50,000 people in 30 countries) show that for happiness, a person needs about 2-3 times the minimum living wage per month. In Russia, this is about 60-90 thousand rubles per person (excluding mortgages). This is enough to not worry about food, clothing, treatment, and rare entertainment. Further income growth does not increase the level of happiness. Moreover, the super-rich (millionaires) are often happier than the middle class? No, the difference is negligible. However, they have more worries (capital preservation, envy, risk of loss).

What to spend money on to become happier

Buying things (iPhones, cars) brings fleeting joy (hedonic adaptation effect). A month later, you get used to it and want something new. However, spending on experiences (travels, concerts, restaurants with friends) makes us happier for a long time. Experiences become part of our identity, they can be relived, remembered. Also, spending on others (gifts, charity) brings happiness. Spending money on time-saving (cleaning, food delivery) also increases life satisfaction because it frees up resources for the important things.

Why the rich cry

Money can make a person lonely. The rich often suspect that they are loved not for their soul but for their wallet. They fear friends who beg, relatives who are nosy, partners who are after inheritance. Children of millionaires can grow up spoiled and unhappy because they have no motivation to do anything. Wealth also intensifies anxiety: how to preserve, not lose, how to pass it on. Many billionaires have mental disorders (depression, anxiety, drug addiction). Money is not a magic wand.

Poverty and happiness: the flip side

If there is not enough money for food, medicine, clothing, happiness is impossible. Constant stress about “how to make ends meet” kills health, ruins families, leads to depression. Under such conditions, any amount, even a small one, sharply increases well-being. Children in poor families perform worse in school and have fewer chances in life. Therefore, the statement “money isn’t everything” is offensive to those who live below the poverty line. First, a decent income, then the pursuit of meanings.

Money and freedom

Freedom is perhaps the main intangible aspect of money. A financial cushion (savings for 6-12 months) allows you to quit a job you don’t like, change careers, start a business. You can say “no” to your boss without fearing being left without means. You can travel without working. You can be treated where you consider necessary. It is this freedom of choice that makes people happy, not the number of zeros on the account. Psychologists call this “financial resilience.” Its level is 20,000-50,000 dollars in reserves (for the middle class).

The status race

People often confuse money and status. They need not a new car, but the respect of their neighbors. This race is endless: you buy a Porsche, and your neighbor buys a Ferrari. You spend 50 thousand on watches, and your colleague spends 100 thousand. The pursuit of status through money destroys both the wallet and the psyche. Happiness is unattainable in this race. Therefore, wise people get out of it. They drive a reliable, not a luxurious car. They live in a modest but cozy home. They don’t need to prove anything to anyone.

Can you buy happiness

The short answer is: yes, but not everything. You can buy health (good medicine), education, safety, comfort, experiences, freedom of time. You cannot buy love, friendship, respect (genuine), the meaning of life, a sense of humor, optimism. Money can help find a partner, but it won’t make them love you. It can pay for a psychologist, but it won’t free you from depression for you. So the reasonable answer is: money is a tool. The result you get depends on how you use it.

Don’t lose yourself in the pursuit of money. Remember: happiness is not a bank account, but moments you share with loved ones. And let money be a loyal servant, not a cruel master.

Permanent link to this publication: