Money Matters
by Suze Orman
Count Your Blessings -- and Your Money
by Suze Orman
Utility Links
Printable ViewEmail this PageMonday, July 31, 2006
I'd be the last person to tell you that money can buy happiness, but I'm fascinated by recent reports insisting that money isn't a major factor in whether or not people are happy.
Please.
Positive psychology (that's what academicians call the study of human happiness) is a hot field of research, and the folks at the Positive Psychology Center at the University of Pennsylvania have come up with an interesting questionnaire that's been getting a lot of press.
Yet nowhere in the 24-question Authentic Happiness Inventory does the issue of money -- or, more important, our desire for financial security -- merit a mention. Hmm.
A Conspicuous Omission
Given how expensive our lives are, how can money not be a factor? We have huge mortgages and tapped-out home equity lines of credit weighing on us. College tuition bills have never been more daunting. Our employers are less likely to give us a defined benefit pension, so the onus is on us -- and our 401(k)s -- to figure out how we'll be able to afford retirement. If we're lucky enough to get health insurance through our employer, the trend is for each of us to be responsible for a greater portion of the bill.
I would love to live in a world where authentic happiness was achievable solely from the richness of relationships, but I'm a realist. And the reality I see -- and that so many of you write to me about -- is one in which money plays into our ability to be truly happy.
Yes, I've heard about the study of lottery winners that showed they were not relatively happier than those who hadn't won the lottery, and the one reporting that folks on the Forbes 100 list (the wealthiest people alive) weren't much happier than the average American.
Those studies show that being filthy rich doesn't ensure happiness, but that's not something most of us have to contend with.
I'm talking about how your happiness is affected when you're worried about how you'll pay the bills at the end of the month, save for the future, and be able to afford to retire. In other words, how you'll make ends meet. When those worries are your reality, I think it's ridiculously hard to be authentically happy.
Happiness Is Income-Sensitive
Apparently, I'm not the only one who thinks so. A survey conducted earlier this year by the Pew Research Center reports that, overall, just 34 percent of respondents are very happy.
But when you start to slice the findings by income, it gets very interesting: 49 percent of respondents with an annual family income above $100,000 say they are very happy. When income falls between $75,000 and $100,000, the very-happy contingent falls to 38 percent. Just 24 percent of those with incomes below $30,000 said they were very happy.
I want to be quite clear: I'm in no way saying that money is all that matters. But I'm so tired of how scared everyone is to admit that money does in fact make a difference in the quality of our lives.
A Family Affair
Most of you would probably say that what makes you truly happy is your family and the love you share in your relationships, and I couldn't agree more. But money comes into play in those relationships, too.
When I talk about money this way to a group, invariably someone comes up to me afterward and give me a "tsk, tsk" look and says, "Suze, you are so wrong. Money isn't the key to life, this is!" At which point their wallet flies open and they show me a photo of their family.
That's when things get interesting, because I start asking them questions: Did you take that photo with your own camera? It looks like a beautiful beach; was the photo taken on a family vacation? Are those braces I see on the two teenagers? Do you hope to help those beautiful kids go to college?
As their heads bob in successive "yes" nods, I ask them how they provide all of that for their family. That's when they understand that I had it right.
Richer, But Not Happier
At the risk of repeating myself, I totally agree that family and friends are vital to our well being; without meaningful relationships, there's no chance of ever being truly, authentically happy. That's why, every Saturday night, I end my CNBC show with the following words: "People first. Then money. Then things."
But money does have a place at the table. If you don't have money to buy things, you're going to be very frustrated. It's just that simple.
How we handle the money we have also plays into our happiness. The Pew survey points out that over the past few decades, the percentage of Americans who say they're happy hasn't changed much (it hovers at around one-third of the population), while at the same time the average per capita income has doubled in inflation-adjusted dollars. So we have more money, but we're not much happier on average.
A paradox? Far from it. My sense is that we while we're making more money, we aren't making more of the money we make. We have a ton of debt, and we have to worry about saving for retirement in a way that our parents and grandparents never did. And as many of you know, it's really hard to boost your happiness quotient when you've got a lot of money worries.
Where Are You on the Money/Happiness Scale?
Do you agree, or am I way off base? I'd love to know what you think about the money/happiness connection. So answer the following questions and find out how you stack up with your fellow readers and happiness-seekers.
(Please answer and submit your response to one question at a time.)
Question 1:
Money has absolutely nothing to do with my level of happiness.
Strongly agree
Agree
Disagree
Strongly disagree
Neither agree nor disagree
Question 2:
Money is a factor, though not the only factor, in my happiness.
Strongly agree
Agree
Disagree
Strongly disagree
Neither agree nor disagree
Question 3:
I would be happier if I didn鈥檛 have to worry about paying the bills every month.
Strongly agree
Agree
Disagree
Strongly disagree
Neitehr agree nor disagree
Question 4:
I would be happier if I could afford to save more money for my long-term goals (such as buying a home, paying for a child鈥檚 college education, or retiring comfortably)
Strongly agree
Agree
Disagree
Strongly disagree
Neither agree nor disagree
The columns, articles, message board posts and any other features provided on Yahoo! Finance are provided for personal finance and investment information and are not to be construed as investment advice. Under no circumstances does the information in this content represent a recommendation to buy, sell or hold any security. The views and opinions expressed in an article or column are the author's own and not necessarily those of Yahoo! and there is no implied endorsement by Yahoo! of any advice or trading strategy.
--------------------------------------...
ADVERTISEMENT
Recent Columns
Emergency Cash Is a Necessity, Not a LuxuryMonday, July 17, 2006Why It Pays to Review Your Life InsuranceMonday, July 3, 2006Money Matters ArchivesDiscuss this column on our message boards
Suze's Finance Software
Will & Trust Kit
The fastest and easiest way to create must-have documents. A $2,500 value, valid in all 50 states. Only $13.50. Buy Now.
Insurance Kit
Make sure you have the insurance you need. Evaluate your insurance policies instantly. Only $43.98.
Sign Suze's Petition
Stay Informed
Headlines
Add headlines to your personalized My Yahoo! page (About My Yahoo! and RSS)
Suze Orman
禄 More Columnists Feeds
Alerts
Get an alert when there are new articles from:
Suze Orman
More Columns
How Not to Ruin Your LifeThe Automatic MillionaireThe Naked EconomistWhy the Rich Get RicherThe Future for InvestorsAll Columns
--------------------------------------...
--------------------------------------...
Copyright 漏 2006 Yahoo! Inc. All rights reserved. Terms of Service.
To learn more about Yahoo!'s use of personal information, please read the Privacy Policy. After one's basic needs (food, shelter, clothing, etc which reflect money or other assets) are met, other aspects of ones life may become more important than money in ones happiness. These are considered in some corporate compensation programs and may include things such as: recognition of accomplishments by management and peers, personal development opportunities, status symbols, and self fulfillment opportunities. Damn thats to long!
If I have money I have no stress so I am happy end of report. money is any thing that bring happiness.if u cosider money as paper money then u can;t say that it will always bring u happiness.Happiness is a secret no one know where to searche it.it is like beauty do u know who gave u beauty who gave u life.so He -------------------------//? |
