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Video Transcript

0:00 Section 1

Does money make you happy? Well it can if you do it right! In this video I reveal 4 ways that money can make you happier! Coming up!

Hey, I’m Dr. Brad Klontz, your financial psychologist! On this channel, we help you transform your relationship with money, master the psychology of wealth, and live a life of abundance! So, if you’re new here, please subscribe and click the bell so you don’t miss anything! Now Let’s get started!

Does money buy happiness? This has been a hotly debated topic with many studies over the years, and it’s complicated. In some ways it can, and in some ways it won’t. Check out THIS video for the 4 ways that money won’t make you happier. BUT in THIS video, I’m going to tell you the 4 ways that money can make you happier.

0:48 Section 2

Reason Number 1: The Happiness Cut-Off So will money make us happy? The answer is yes, to a point. Studies have shown that that point on average is around $75,000 in household income per year. This happens to be close to the median household income in the United States. At the $75,000 point, for most people, your basic needs around food and shelter are taken care of. It can be a terrible experience to be struggling to meet your basic financial needs, things like food, shelter, clothing, and medical care for you and your family.

So there is no doubt that more money will definitely decrease your stress and make you happier if it gives you enough to meet your basic needs.

1:30

Reason Number 2: Don’t Buy, Do!

While there’s no significant correlation between money and happiness above an income of $75,000 a year, that research looked at averages and not at how people spend their money. When people buy stuff, any boost in happiness is short lived. Think of how great it felt as a kid to get a new toy. How exciting, how fun! This shiny new thing! But, after a day or two, that joy fades away.  However, money spent on novel experiences – like trying something new, it could be sailing, or ziplining, a romantic meal with your partner, or a nice vacation with people you love – these types of experiences can bring joy into your life.

So money spent on joyful experiences is much more likely to make you happier than money spent on stuff.

2:16 Section 3

Reason Number 3: Buying More Time

Another way that more money can increase your happiness is if you’re able to use that money to free up time – time you can spend on pursuits that feed your soul. This could be immersing yourself in a hobby you always wanted to do, writing a novel, or spending time with your friends or kids. Spending money to free up time to do what you love with the people you love can increase your happiness.

Number 4: Helping Others

One of the best ways to improve your mood and to find purpose in your life, is to help someone else. This could include giving money to a charity, doing volunteer work, or being able to help out someone else financially. More money definitely increases our ability to provide material support to the people and causes we love, which can increase our happiness. So a big pile of money won’t suddenly change your life and make you happy, but how you spend it can improve your life satisfaction.

3:11

So increasing your income is definitely a process and takes time, but who wants to wait to become happier? I mean not me, that’s for sure! I want to feel happier right now! So my best advice to you is to make yourself as happy as you can right now by paying close attention to the love, beauty and abundance all around you. If you can achieve happiness now, in your current situation, in this moment, then you’ll be able to make the most of more money when it comes into your life, and you’ll certainly be able to use it to improve your overall level of happiness.

Special thanks to the Heider College of Business at Creighton University for helping sponsor this channel. If you liked this video and want to see more like it, please subscribe. And make sure to check the video description below for links and resources. See you next time!