I guess the first thing we need to remember about money and happiness is that the former does not cause the latter.
Sure it can bring short-term delight. But that feeling will not last.
This is easily seen by thinking of a few of your friends who might not be rich but are always content and at peace. Now think of all the billionaires and celebrities who have committed suicide over the years.
If we can get past this fact that so many
The direction of money in your life matters more than the state of money in your life.
A billionaire whose income is going down by 7% per year is an anxious wreck. And my income going up by 7% per year makes me elated.
Why is this the case?
It’s relative, you see.
Samuel Butler wrote, “Happiness and misery consist in a progression towards better or worse; it does not matter how high up or low down you are, it depends not on this, but on the direction in which you are tending.” This seems the key to understanding the relationship between money and happiness.
-Gretchen Rubin, The Happiness Project