“Money doesn't buy happiness.” This phrase we hear from childhood. But why then do all of us strive for money? Why does poverty oppress, while the rich cry no less than the poor? The question of the connection between money and happiness has concerned humanity for centuries. In 2026, when the world survived a pandemic, inflation, and a trust crisis, 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 a strange regularity: in poor countries, happiness increases with the growth of GDP, but after reaching a certain level (about 20,000 dollars per capita per year), happiness stops growing. That is, Americans in 2026 are no happier than they were in the 1970s, although their income has increased several times. Explanation: people compare themselves with their neighbors, not with the past. As soon as basic needs are met, further wealth does not bring joy. What matters more is status, respect, friendship. And money often ruins these connections.

How much money is needed for happiness

Research from 2025 (a survey of 50,000 people in 30 countries) shows that for happiness, a person needs about 2-3 minimum living wages per month. In Russia, this is about 60-90 thousand rubles per person (without housing loans). This is enough to not worry about food, clothing, treatment, 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

Purchasing things (iPhones, cars) brings momentary joy (hedonic adaptation effect). A month later, you get used to it and want something new. However, spending money on experiences (travel, concerts, dining with friends) makes us happier for a long time. Experiences become part of our identity, we can relive them, remember them. Also, spending money 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 beggars, nosy relatives, partners who are after inheritance. Children of millionaires may 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 suffer from mental disorders (depression, anxiety, drug addiction). Money is not a magic wand.

Poverty and happiness: the other side

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

Money and freedom

Freedom is perhaps the main non-material aspect of money. A financial cushion (savings for 6-12 months) allows you to quit a disliked job, change careers, start a business. You can say “no” to your boss without worrying about losing your means. You can travel without working. You can treat yourself where you think necessary. It is this freedom of choice that makes you happy, not the number of zeros on your 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: bought a Porsche - the neighbor bought a Ferrari. Spent 50 thousand on a watch - and a colleague's watch costs 100 thousand. The pursuit of status through money ruins both the wallet and the psyche. Happiness in this race is unattainable. Therefore, wise people step out of it. They drive a reliable, not a luxury, car. They live in a modest but cozy house. 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 can't buy love, friendship, respect (sincere), meaning in 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. What 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 shared with loved ones. And money should be a loyal servant, not a cruel master.

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