what is the impact of money on an individuals thinking
Answers
Answered by
2
Money allows us to meet our basic needs—to buy food and shelter and pay for healthcare. Meeting these needs is essential, and if we don’t have enough money to do so, our wellbeing suffers.
Beyond that, as Tom Rath suggests in his book, Wellbeing, “money can increase our short-term happiness by giving us more control over how we spend our time.” For example, it can give us the option to live closer to work, work fewer hours, and spend more time on leisure activities with friends. Money can be used to make our lives easier.
But the fact is that most of us don’t use money to buy more free time. Instead, we spend it on more expensive possessions.
More money doesn’t necessarily buy happiness
Contrary to what most of us believe, once we have enough to meet our basic needs, a higher income may not significantly increase our wellbeing and may even have a negative effect in some cases! The data to support this is interesting. For example,
Per capita income in the U.S. rose 150% from 1946 to 1990 (which is a huge difference in purchasing power), but the percent of people considering themselves very happy fell.
In addition, depression rates in the U.S. rose 10 times in that 50-year period.
In Japan between 1958 and 1991, the per capita income rose six-fold, but subjective wellbeing stayed the same.
People who won large amounts of money in lotteries in the U.S. or football pools in England were not significantly happier a year later and were more dissatisfied with daily events.
Welfare recipients who were given more money in a controlled study experienced more stress than those who received the regular amount.
Beyond that, as Tom Rath suggests in his book, Wellbeing, “money can increase our short-term happiness by giving us more control over how we spend our time.” For example, it can give us the option to live closer to work, work fewer hours, and spend more time on leisure activities with friends. Money can be used to make our lives easier.
But the fact is that most of us don’t use money to buy more free time. Instead, we spend it on more expensive possessions.
More money doesn’t necessarily buy happiness
Contrary to what most of us believe, once we have enough to meet our basic needs, a higher income may not significantly increase our wellbeing and may even have a negative effect in some cases! The data to support this is interesting. For example,
Per capita income in the U.S. rose 150% from 1946 to 1990 (which is a huge difference in purchasing power), but the percent of people considering themselves very happy fell.
In addition, depression rates in the U.S. rose 10 times in that 50-year period.
In Japan between 1958 and 1991, the per capita income rose six-fold, but subjective wellbeing stayed the same.
People who won large amounts of money in lotteries in the U.S. or football pools in England were not significantly happier a year later and were more dissatisfied with daily events.
Welfare recipients who were given more money in a controlled study experienced more stress than those who received the regular amount.
Similar questions