“Money can’t buy happiness, but it can make your misery a little more comfortable,” or so my father once said. I have also come to believe that while money can’t buy happiness, it can buy you options. For example, with enough in savings, you may be able to make a different career decision, or you may have peace of mind that allows you to feel free from an employer’s whim or an industry’s downsizing and of course, money may allow you to retire early. But what about that jolt of glee that you feel, when you sit in a brand new car or slip on that sparkling piece of jewelry? Psychologists and behavioral economists have conducted studies, which have shown that despite a shot in the arm that a purchase or even a gift can provide, the happiness boost does not last that long. There is actually a name for this: The Hedonic Treadmill.
Read More