Many studies find a relationship between subjective well-being and higher incomes, but it is not advisable to bet everything on the economic aspect.
In 2012, British couple Adrian and Gillian Bayford won a staggering 190 million euros in the Euromillions lottery. However, their fortune quickly turned into misfortune as they divorced months later and eventually ended up in debt due to poor investments, married to deceitful partners and estranged from their family. Similarly, in 1988, William Post won 16.2 million dollars in the Pennsylvania lottery, only to have his brother hire a hitman to kill him in hopes of inheriting his wealth. Post survived the assassination attempt but died with over a million euros in debt. These stories of lottery winners ending up in financial ruin are not isolated incidents. A widely-cited study by the National Endowment for Financial Education (NEFE) in Denver, USA, suggested that 70% of lottery winners go bankrupt within five years. However, the organization denied the existence of such a study in 2018 and attributed the misinformation to a participant in a 2001 NEFE meeting. Subsequent studies suggest that lottery winners fare better after their win, with bankruptcy rates among them estimated to be less than 6%. Despite the correction, the 70% figure continues to be published, reflecting a societal belief that money does not guarantee happiness. Research conducted by Matthew Killingsworth from the University of Pennsylvania and Daniel Kahneman from Princeton University explored the relationship between money and emotional wellbeing. Their joint study found that while increasing income continues to provide emotional benefits for 80% of people, there is 20% of the population for whom earnings above 100,000 dollars annually do not bring any additional happiness. Money, in itself, does not bring happiness, but it does allow people to do things that make them feel better. Spending money on others, maintaining good social relationships, and having control over one’s time are associated with subjective wellbeing. However, economist Richard Easterlin argues that beyond meeting basic needs, an increase in income does not necessarily improve wellbeing. He suggests that time spent with family and taking care of one’s health have a longer–lasting impact than money. The relationship between money and happiness is complex. A recent study published in the journal PNAS measured life satisfaction among individuals living in societies on the fringes of the globalized world, including members of indigenous populations with limited economic resources. Despite their apparent poverty, these communities reported high levels of life satisfaction. This suggests that factors beyond money, including a strong sense of community, close connection to nature, and deep spirituality, can contribute to wellbeing. Marino Pérez from the Academy of Psychology of Spain is skeptical about the utility of measuring happiness to guide public policy. He argues that happiness is subjective and dependent on individual and societal factors. He believes that striving for happiness can be detrimental to mental health, particularly in consumerist societies where individuals are never satisfied with what they have. In his view, the pursuit of happiness should not be reduced to the pursuit of wealth.
