Chapter 1
INTRODUCTION
A. Background of the Study
Money is not only an instrument of commerce and a medium of exchange for products and services, but also a powerful tool that can cause happiness or dependency. Money is also a multidimensional construct; it is instrumental as well as symbolic in and of itself. There are many dimensions associated with money: power and prestige, retention-time, and good and bad.
According to Mr. Christopher's article entitled "Money Can't Buy Happiness", money is a short term way of happiness. Money can only buy the things that people want like cars, houses, shoes and clothes in which the newness wears off and gets old after a while. But it cannot buy their needs like friendship and time with their family. Money can't make people love you for who you are.
Therefore, the researcher seeks to find out and have a knowledge why money is associated to happiness knowing its negativity.
Since there has been an experiment, the purpose of this research paper is to explain the connection between money and happiness.
B. Statement of the Problem
The study seeks to answer the question: What is the connection between money and happiness?
C. Significance of the Study
Workaholic. The prior knowledge of this study would surely help the people who are obsessed in work believing that more money is going to make them and their family happier. This belief sets someone on an endless treadmill of working harder and harder to make more and more money to achieve happiness. However, this is a fool’s errand. In this case, they could make use of the information written in the research paper and basing their life off working too hard for money might succeed in becoming lonely and miserable.
Teenagers. Even though teens may think they know it all, new research has found that money matters are one area where teens are most assuredly lacking knowledge. Proof of that fact comes from the 17 percent of teens between the ages of 12 and 17 who said they knew how to manage their money. So in a long twisted jumble of facts, they think that money really does make the world go round and round.
Politicians. This research paper would benefit the politicians to know and reflect what negative reputation money can bring into their lives once they they misuse their governmental power for personal gain.
Future Researchers. There are many researchers who have studied about money and happiness. Previous studies have been published and are used by other researchers to examine how to achieve happiness. Aside from the other studies, this study will also be helpful for other researchers in order to know the effect of money in life behaviour and happiness.
D. Scope and Delimitation
This research paper focuses on the connections between money and happiness. Having money is one of the most important things in life, but happiness is even more important. Many people believe that becoming rich is the path to happiness, but pursuing wealth may be an ineffective means of pursuing well-being.
E. Materials and Methods
F. Definition of Terms
Money. Is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts in a particular country or socio-economic context.
Happiness. Is a mental or emotional state of well-being defined by positive or pleasant emotions ranging from contentment to intense joy.
Psychologists. A psychologist evaluates, diagnoses, treats, and studies behavior and mental processes.
Positive Psychology. It is the study of what actions, pursuits and motivations best contribute to the good life.
I. Definition of Money and Happiness
Money is primarily a medium of exchange or means of exchange. It is a way for a person to trade what he has for what he wants. Ideal money has three critical characteristics: it acts as a medium of exchange; it is an economic good; and it is a means of economic calculation. To properly understand money as a medium of exchange one must first go back to the first methods of trade. Before money was invented one would have to engage in direct barter. Over time, different commodities served as medium of exchange but the problem of marketability and durability came into play. A necessary and highly exchangeable commodity was food. The problem is that it was perishable. One had to either use it or trade it before it went bad. Over time, the most marketable and durable commodities came to be used as medium of exchange – commodities such as gold and silver. Money is an expression of exchange value (the exchange values placed on goods by traders in the marketplace).
Happiness is not about smiling all of the time. It's not about eliminating bad moods, or trading your Tolstoy-inspired nuance and ambivalence toward people and situations for cheery pronouncements devoid of critical judgment. While the veritable experts lie in different camps and sometimes challenge one another, over the past decade they've together assembled big chunks of the happiness puzzle.
What is happiness? The most useful definition and it's one agreed upon by neuroscientists, psychiatrists, behavioral economists and positive psychologists is more like satisfied or content than "happy" in its strict bursting-with-glee sense. It has depth and deliberation to it. It encompasses living a meaningful life, utilizing your gifts and your time, living with thought and purpose.
It's maximized when you also feel part of a community. And when you confront annoyances and crises with grace. It involves a willingness to learn and stretch and grow, which sometimes involves discomfort. It requires acting on life, not merely taking it in. It's not joy, a temporary exhilaration, or even pleasure, that sensual rush though a steady supply of those feelings course through those who seize each day.
II. Connections between Money and Happiness
A. How much Money do we Need to make us Happy?
People desires to have more money just like I do. Money can provide our needs and wants. It can take us wherever we want. Nowadays, it's like money can make the world go round. People would do everything just to have money, in illegal or not. They will do whatever it takes to give happiness to the people they love by giving them money or by buying anything they want. Nevertheless, can money buy happiness?
According to the article entitled "Does Money Buy Happiness? Apparently, it does" written by Sara Miller, when we're introduced to the lifestyle of rich, we witness the majestic money can achieve. They mentioned that according to the Time Magazine article "Do We Need $75,000 a Year to Make Us Happy? money can buy happiness in a certain point. A study held by Princeton University's Woodrow Wilson School surveying 450,000 people, the happiness limits is around $75,000. This wage allows the average American to live comfortably and a little fancy. Economists Angus Deaton and Daniel Kahneman tested two different types of happiness. The first being the daily up and down of mood swings and the second focused on a deeper and long lasting fulfillment. $75,000 or above helps people to feel the deep satisfaction of happiness and gives them a positive outlook on their future. Once under the $75.000 mark, dissatisfaction starts to arise and the worries of life.
B. Can Money Buy Happiness?
For people with very little money, it turns out that money can actually make you happy because it can provide you with things that you need for survival. However, once, you gain a foothold on these basic survival related needs, the relationship between money and happiness decreases.
In the article written by Michael Kraus and titled "The Happy Chronicles II," for instance, self-determination theory suggests that happiness is about self-improvement, finding meaning in the things you do, and personal growth. Thus, people tend to be happiest when they satisfy intrinsic goals that have to do with finding personal meaning. Extrinsic goals like making money and becoming famous won't necessarily improve one's happiness. In a study that examined this effect, Niemiec and colleagues examined well-being among college students who just graduated from a four year university that were now heading out into the work force. They found that the students who set intrinsic goals, goals for self-improvement and personal growth tended to achieve those goals 1-year post graduation, and also tended to be happier than did students who set extrinsic goals, goals to make money and be famous. It's also possible that increases in a select group of people's income can be detrimental to happiness in society as a whole. Recently researchers, led by Ed Diener of the University of Illinois published evidence from a large scale national survey asking if inequality that is, large wealth differences between the richest and poorest people in society might decrease happiness. The researchers found that wealth inequality is correlated with lower trust toward others. Thus, wealth inequality may reduce happiness by straining the normal trusting relationships between people.
According to Manasa Gopakumar's article entitled "The Happiness Quotient, the Relationship between Happiness and Wealth", a person’s conception of the relationship between money and happiness also depends on how he spends his money. If he uses it for the time spent with family, friends or for doing charity, the happiness is bound to last longer as the memories of those experience are long-lasting, as opposed to spending the money on say, gadgets that will bring a momentary pleasure which will die out soon.
There is a correlation between money and happiness, but correlation always does not mean causation. It is not always the case that more wealth means more happiness. Money helps reduce stress and worry in one’s life and hence provides contentment. Although money is extremely important for one’s survival, there are factors other than a high-paying job that contributes towards a person’s overall happiness. The thought of being independent, getting respected, having a loving family and a fulfilling job can be more meaningful and rewarding to someone than a fat pay cheque.
According to Mr. Christopher's article entitled "Money Can't Buy Happiness", money is a short term way of happiness. Money can only buy the things that people want like cars, houses, shoes and clothes in which the newness wears off and gets old after a while. But it cannot buy their needs like friendship and time with their family. Money can't make people love you for who you are.
"Having the power to get whatever and whenever you want something is not part how it should be," Christopher said.Another article was written by Sonal Daga entitled "Is Too Much Money a Bad Thing?" He said that too much money is considered bad because many people forgets who to respect and be grateful in life. They take everything in life for granted and feel superior. They forget what is right and wrong and do not follow any rule and act the way they feel is right.
"Money does not make everything good or bad, but the thinking does it," Sonal said.As for Rodney Chrisman, in his article "Is Money Evil?", people with strong lust for money can develop an insensible disposition. In the discipline of psychology, there exists a correlation between happy feelings and money which has already been discovered. Those who have a strong love of money constantly feel the urge to money as if they have a lack of it, these individuals have a bad disposition and are impatient when confronted with those whom they believe are seeking to prevent them from gaining money. Many people with an excessive passion for gaining money tend to identify themselves with their financial well-being, thus being afraid to lose their capital.
Rodney said, "In their fear, they lose the greatest of all values, a sense of peace."According to Professor Afrikadzata Deku's article entitled "Positive Money to Have and Negative Money to Avoid", negative money is crumbs-based and oriented, the more you have it, the more you want it, the more drained you become and the less time you have to enjoy it.
"To treat money as your friend and not as your master is to enjoy the blessing of positive money and be free from the curse of negative money," Professor Afrikadzata quoted.The researcher believes that money is evil however, an experiment proved that thinking about money may drive us toward using our financial resources to benefit ourselves, but spending money on others can provide more effective route to increase our own happiness.
Therefore, the researcher seeks to find out and have a knowledge why money is associated to happiness knowing its negativity.
Since there has been an experiment, the purpose of this research paper is to explain the connection between money and happiness.
B. Statement of the Problem
The study seeks to answer the question: What is the connection between money and happiness?
C. Significance of the Study
Workaholic. The prior knowledge of this study would surely help the people who are obsessed in work believing that more money is going to make them and their family happier. This belief sets someone on an endless treadmill of working harder and harder to make more and more money to achieve happiness. However, this is a fool’s errand. In this case, they could make use of the information written in the research paper and basing their life off working too hard for money might succeed in becoming lonely and miserable.
Teenagers. Even though teens may think they know it all, new research has found that money matters are one area where teens are most assuredly lacking knowledge. Proof of that fact comes from the 17 percent of teens between the ages of 12 and 17 who said they knew how to manage their money. So in a long twisted jumble of facts, they think that money really does make the world go round and round.
Politicians. This research paper would benefit the politicians to know and reflect what negative reputation money can bring into their lives once they they misuse their governmental power for personal gain.
Future Researchers. There are many researchers who have studied about money and happiness. Previous studies have been published and are used by other researchers to examine how to achieve happiness. Aside from the other studies, this study will also be helpful for other researchers in order to know the effect of money in life behaviour and happiness.
D. Scope and Delimitation
This research paper focuses on the connections between money and happiness. Having money is one of the most important things in life, but happiness is even more important. Many people believe that becoming rich is the path to happiness, but pursuing wealth may be an ineffective means of pursuing well-being.
E. Materials and Methods
This study evaluates pieces of information based on the article found and the researcher’s observation. The study is also after the defining money and happiness. All the related articles and studies were gathered through the World Wide Web.
Money. Is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts in a particular country or socio-economic context.
Happiness. Is a mental or emotional state of well-being defined by positive or pleasant emotions ranging from contentment to intense joy.
Psychologists. A psychologist evaluates, diagnoses, treats, and studies behavior and mental processes.
Positive Psychology. It is the study of what actions, pursuits and motivations best contribute to the good life.
Chapter 2
DISCUSSION
What is the connection between money and happiness?
I. Definition of Money and Happiness
Money is primarily a medium of exchange or means of exchange. It is a way for a person to trade what he has for what he wants. Ideal money has three critical characteristics: it acts as a medium of exchange; it is an economic good; and it is a means of economic calculation. To properly understand money as a medium of exchange one must first go back to the first methods of trade. Before money was invented one would have to engage in direct barter. Over time, different commodities served as medium of exchange but the problem of marketability and durability came into play. A necessary and highly exchangeable commodity was food. The problem is that it was perishable. One had to either use it or trade it before it went bad. Over time, the most marketable and durable commodities came to be used as medium of exchange – commodities such as gold and silver. Money is an expression of exchange value (the exchange values placed on goods by traders in the marketplace).
Happiness is not about smiling all of the time. It's not about eliminating bad moods, or trading your Tolstoy-inspired nuance and ambivalence toward people and situations for cheery pronouncements devoid of critical judgment. While the veritable experts lie in different camps and sometimes challenge one another, over the past decade they've together assembled big chunks of the happiness puzzle.
What is happiness? The most useful definition and it's one agreed upon by neuroscientists, psychiatrists, behavioral economists and positive psychologists is more like satisfied or content than "happy" in its strict bursting-with-glee sense. It has depth and deliberation to it. It encompasses living a meaningful life, utilizing your gifts and your time, living with thought and purpose.
It's maximized when you also feel part of a community. And when you confront annoyances and crises with grace. It involves a willingness to learn and stretch and grow, which sometimes involves discomfort. It requires acting on life, not merely taking it in. It's not joy, a temporary exhilaration, or even pleasure, that sensual rush though a steady supply of those feelings course through those who seize each day.
II. Connections between Money and Happiness
A. How much Money do we Need to make us Happy?
People desires to have more money just like I do. Money can provide our needs and wants. It can take us wherever we want. Nowadays, it's like money can make the world go round. People would do everything just to have money, in illegal or not. They will do whatever it takes to give happiness to the people they love by giving them money or by buying anything they want. Nevertheless, can money buy happiness?
According to the article entitled "Does Money Buy Happiness? Apparently, it does" written by Sara Miller, when we're introduced to the lifestyle of rich, we witness the majestic money can achieve. They mentioned that according to the Time Magazine article "Do We Need $75,000 a Year to Make Us Happy? money can buy happiness in a certain point. A study held by Princeton University's Woodrow Wilson School surveying 450,000 people, the happiness limits is around $75,000. This wage allows the average American to live comfortably and a little fancy. Economists Angus Deaton and Daniel Kahneman tested two different types of happiness. The first being the daily up and down of mood swings and the second focused on a deeper and long lasting fulfillment. $75,000 or above helps people to feel the deep satisfaction of happiness and gives them a positive outlook on their future. Once under the $75.000 mark, dissatisfaction starts to arise and the worries of life.
Sara quoted, "Does money buy us happiness? It does, and it can. In the modern world, money (be it $75,000 or 1 million) can bring us happiness to a certain degree, optimism about our futures, and leave a little extra for indulgence."I strongly disagree with the author. How can she measure the money that we need just to ensure our happiness? For me, her thoughts are mainly focused on tangible things that can make us even happier. However, she never thought of the things that absolutely money can't buy and those are the intangible just like love, friends, family, talents and so on. Surely we can live without material possession just like how our ancestors lived in simplicity.
B. Can Money Buy Happiness?
For people with very little money, it turns out that money can actually make you happy because it can provide you with things that you need for survival. However, once, you gain a foothold on these basic survival related needs, the relationship between money and happiness decreases.
In the article written by Michael Kraus and titled "The Happy Chronicles II," for instance, self-determination theory suggests that happiness is about self-improvement, finding meaning in the things you do, and personal growth. Thus, people tend to be happiest when they satisfy intrinsic goals that have to do with finding personal meaning. Extrinsic goals like making money and becoming famous won't necessarily improve one's happiness. In a study that examined this effect, Niemiec and colleagues examined well-being among college students who just graduated from a four year university that were now heading out into the work force. They found that the students who set intrinsic goals, goals for self-improvement and personal growth tended to achieve those goals 1-year post graduation, and also tended to be happier than did students who set extrinsic goals, goals to make money and be famous. It's also possible that increases in a select group of people's income can be detrimental to happiness in society as a whole. Recently researchers, led by Ed Diener of the University of Illinois published evidence from a large scale national survey asking if inequality that is, large wealth differences between the richest and poorest people in society might decrease happiness. The researchers found that wealth inequality is correlated with lower trust toward others. Thus, wealth inequality may reduce happiness by straining the normal trusting relationships between people.
The author said,"Beyond fulfilling your basic needs, money doesn't seem to be a pathway to happiness. In fact, at a certain point, people may find more happiness in sharing their wealth with others, forming lasting relationships, and pursuing goals for personal growth."Happiness is a choice. Whatever life throws at you, happiness will always be your choice. It is in this simple matter than one can find happiness, though money plays a role, there are other factors that can affect one's happiness, relationships, personal needs, however nothing can compete against one's own belief, one's own idea that they are happy. It is when one can appreciate what they have will they truly find happiness.
According to Manasa Gopakumar's article entitled "The Happiness Quotient, the Relationship between Happiness and Wealth", a person’s conception of the relationship between money and happiness also depends on how he spends his money. If he uses it for the time spent with family, friends or for doing charity, the happiness is bound to last longer as the memories of those experience are long-lasting, as opposed to spending the money on say, gadgets that will bring a momentary pleasure which will die out soon.
There is a correlation between money and happiness, but correlation always does not mean causation. It is not always the case that more wealth means more happiness. Money helps reduce stress and worry in one’s life and hence provides contentment. Although money is extremely important for one’s survival, there are factors other than a high-paying job that contributes towards a person’s overall happiness. The thought of being independent, getting respected, having a loving family and a fulfilling job can be more meaningful and rewarding to someone than a fat pay cheque.
"Wealth should not pursued for its own sake, as this would make one subservient to it."One should not get possessed by or get affected by pleasures like wealth, which comes in the way of one’s journey towards a virtuous life. But in a more pragmatic sense, for someone to even say that they are not affected by wealth, they need to be at a certain privileged position. The horrifying feeling of an empty wallet will never let anyone say that they are not affected by money at all.
Chapter 3
SUMMARY, CONCLUSIONS
AND RECOMMENDATIONS
SUMMARY
This research paper is meant to find out the connections between money and happiness.
The researcher evaluates pieces of information based on the related articles and studied found online. With that, the researcher was able to answer the statement of the problem. The results, outcomes and findings of the study are as follows:
1. There is no correlation to the wealth and happiness in one’s life. As long as one is leading a comfortable life with access to basic amenities and good education, he can be happy. However, since words like “comfortable” and “needs” are subjective, it depends on the individual what his idea of a satisfactory life would be.
2. Doubling your salary won't necessarily give you more joy, day-to-day. It won't make you more excited by your work or help you feel closer to your friends and family.”
3. The happiness quotient is bound to be higher when one moves from a state of abject poverty to a state of being comfortable and having their needs met; as compared to a transition from an already comfortable life to a little more sophisticated lifestyle.
CONCLUSIONS
Based on the outcomes and results produced by the study done, the researcher concluded that:
- People tend to compare their wealth to that of others. Many a time, their happiness depends on how well they are keeping up with their colleagues or neighbors. The happiness, in this case, is due to relative wealth.
- Beyond fulfilling your basic needs, money doesn't seem to be a pathway to happiness. In fact, at a certain point, people may find more happiness in sharing their wealth with others, forming lasting relationships, and pursuing goals for personal growth.
RECOMMENDATIONS
After drawing the conclusion of the study, the researcher hereby makes the following recommendations:
1. Spending money on tangible objects for self-centered means fails to offer a route to sustainable happiness.
2. Spending money on well-chosen experiences is a useful route to sustainable happiness.
3. Communal motives for spending money is an effective strategy for increasing happiness in other people as well as the self.
REFERENCES
Manasa Gopakumar (April 26, 2013) "The Happiness Quotient… the Relationship between Happiness and Wealth" Retrieved April 7, 2015 from http://ssla.edu.in/blog/entry/humanities-social/the-happiness-quotient-the-relationship-between-happiness-and-wealth
Todd B Kashdan Ph.D. (May 25, 2010) "Does Money Influence Happiness? Depends on How You Spend Your Cash" Retrieved April 7, 2015 from https://www.psychologytoday.com/blog/curious/201005/does-money-influence-happiness-depends-how-you-spend-your-cash
Michael W Kraus Ph.D. (April 3, 2012) "The Happiness Chronicles II: Does Money Buy Happiness?" Retrieved April 7, 2015 from https://www.psychologytoday.com/blog/under-the-influence/201204/the-happiness-chronicles-ii-does-money-buy-happiness
A. Freeman "Economics and Liberty" Retrieved April 7, 2015 from https://economicsandliberty.wordpress.com/what-is-money/
Sara Miller "Does Money Buy Happiness? Apparently, it Does" Retrieved April 7, 2015 from http://examinedexistence.com/does-money-buy-happiness-apparently-it-does/
Sara Miller "Does Money Buy Happiness? Apparently, it Does" Retrieved April 7, 2015 from http://examinedexistence.com/does-money-buy-happiness-apparently-it-does/
