Researchers have discovered how to be happier, and it’s not what you think.
"Choose to be happy" isn't just a cliche; it's a scientific conclusion.
People with the freedom to change careers, start a business or live their dreams are happier than people who feel stuck, researchers discovered.
Money relates to happiness only as far as it influences a person’s freedom to make choices, the researchers found.
In other words, money is indirectly tied to happiness through the lens of your ‘freedom to choose.’
“While wealth can provide you with more choices, it’s really having the ability to realize your dreams that leads to greater happiness,” study coauthor Ronald Fischer told AARP Magazine.
Fischer belonged to a team of researchers at the University of Wellington in New Zealand that surveyed 420,000 people across 63 countries about money, freedom, and choices.
Here’s the kicker: the people with freedom to choose report higher levels of happiness, even if they never act on that freedom.
The actual act of changing careers, starting a large family, moving to a new city, launching a business or traveling the world is irrelevant. What matters is having the freedom to do so. (I call this the freedom to ‘afford anything’ you choose.)
Money can provide you with more choices, but only if you keep your bills low.
It’s not the balance in a person’s bank account that makes them happy; it’s the ‘spread’ between their bank balance and their bills. If there’s a wide spread, people have more flexibility, more options. If there’s a narrow spread, people perceive themselves as stuck, and their happiness levels plummet.
If you get a raise but you embrace a bigger mortgage or a new car payment, your ‘spread’ never changes and you aren’t any happier.
If you get a raise but your spending habits stay the same, your ‘spread’ increases and – with it – so does your freedom and happiness.
The bottom line? Happiness relates to your ability to self-govern your own life, even if your day-to-day actions stay the same.
Want to learn more? — A professor in Colorado discovers that spending money on experiences, not objects, is the secret to happiness.
Photo courtesy Georgi Keith.
I had read your article about the secret to happiness and it’s one of my favorite posts ever…not just on this blog, but ever. I love the supplemental information in this post, too.
@femmefrugality — Aww, thank you!!
You took this conclusion and applied it to money. I think that’s a good application, but I also think an even better one would be relating this principle to our current government.
If freedom = happiness, then Ron Paul = happiness.
If we want the country to be happier as a whole, then we need to elect government officials that believe in allowing people the freedom to make any decisions they want, instead of having the government make them for us.
@Kevin — As I was writing this post, I was thinking, ‘You know, in some countries like Saudi Arabia, no matter how much money you have, you still aren’t free.” (Especially if you’re a woman … even the richest Saudi women aren’t allowed to drive cars, testify in court, or vote.) Money is great, but freedom is the ultimate.
PS, love the new header. Where on earth did you get your inspiration?
@Kevin — I saw this awesome blog with a great header design and just thought: “Wow, if only my site could look more that that one!”
I learned this a long time ago, choices will make you happy. Money helps you have choices, but it is still up to you.
I love your article. I enjoyed reading this because this is about good vibes.. Always be happy.
@Pamela — Happiness is paramount!
Not all choices we make are determined by money. Material things, yes are determined by money. However, life is much more than just money.
I think you’re hitting on that middle class yet living paycheck to paycheck thing… I like it. A large paycheck means nothing if you’re spending more than you earn – full stop.
@Pkamp3 — I can’t imagine living paycheck-to-paycheck again; the only time I had to do that was during my first 2 years in college, when I was a full-time student earning $6.15 per hour at a part-time job. Now that I’m an adult and I no longer have to devote 40 hours a week to unpaid work (studying), I can’t imagine living paycheck-to-paycheck again, and I CERTAINLY can’t imagine voluntarily spending so much that I put myself in that position.
This certainly speaks to me, since I’m already loads happier since I lost my job. I just put a freeze on my cell phone account so that I can stretch the money I have saved up further. I’m not really at the point where I have enough money to have the freedom of choice I’d like, but I at least have enough freedom that I’m in a hurry to find another office job. That’s enough, right now.
Considering I posted a blog today about how I quit my job to try my hand at freelancing and to give myself more flexibility, and I feel (now unemployed) LESS stressed than I have in months, I can authoritatively say that this post is absolutely true! Haha.
I have been saving hardcore since I started working, not really for anything in particular, and it’s that savings that has allowed me the ability to take a chance like this. I can’t imagine how miserable I would be if I was stuck, and couldn’t make any change if I wanted to.
I agree with this. I feel much more happy now that I have more choices in my life. And this was only possible because the hubby and I cut expenses. So, very true!
Great post! This reminds me of a quote “Find a job you love and you will never have to work for the rest of your life.”
This is so true, people who love what they do are much happier than people who just show up to work because they have to.
This totally makes sense. I can’t wait until we have freedom to do what we really want. We’re happy now, but I wouldn’t mind being happier.
I was just thinknig about it today actually – I’m working my first job out of school, it pays well for an entry-lvel position and I’m saving most of it. My goal is to have a couple of year’s funds saved before my contract is up for renegotiation, so that I can have the freedom to demand more money, different roles, or walk away if I want to explore something different.
A lot of my friends in the same boat (same industry, similar pay levels) already feel enslaved to their jobs because they “have to have” that big house on the hill or the private school for their future kids, so they work a lot, spend a lot, complain a lot but never think about a way out. I get made fun of by them sometimes, they tell me “come on, get that purse, it’s only a couple of thousand dollars, you’re lawyer, you can afford it”. But to me, the freedom and the increased amount of options I will have because of my savings is worth much more than all the Chanel purses and LB shoes that this $ can buy. I like my job so I’m not even sure that I will want to switch careers, but the option itself makes me feel content and secure, and therefore, happy.
@My Money, My Life — exactly!! Your mind is totally in the right place. Having the freedom to self-govern and self-direct your life will make you far happier than any designer purse.
Very good article on how to be happier in life. I always like to read article on this topic that give me good vibes and give me happiness.
Very well said information.
Quote from Charles Dickens:
Annual income twenty pounds, annual expenditure nineteen nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.
@Oriol — I like that! Dickens had it right.