Study: Greater freedom means money can buy happiness

| Category: News

A new study has disputed the saying “money can’t buy happiness”. In fact, the research suggests the opposite is true, money can buy happiness, but it isn’t as simple as accumulating as much wealth as possible.

According to the Guardian, a study from the University of Pennsylvania found a strong association between money and happiness. The researchers tracked the happiness of more than 33,000 adults in the US with a household income of at least $10,000 (£7,677) a year, including those with a net worth of more than $3 million (£2.3 million).

If you believe the old saying, you might expect happiness to be fairly consistent across all participants, regardless of their wealth. Yet, the data showed there was a happiness gap between wealthy and middle-income participants, which was wider than middle- and low-income households.

Researcher Matt Killingsworth said that wealthy individuals were “substantially and significantly happier”. Yet, he added that this happiness is “psychologically deeper than simply buying more stuff”.

For many of those reporting higher levels of happiness, financial freedom played a role in their life satisfaction.

The feeling of control can explain 75% of the association between money and happiness

There are wellbeing benefits to accumulating more wealth. You might feel a greater sense of security knowing that you have assets to fall back on if you face an unexpected shock. Or you may experience a sense of accomplishment when you see the value of your savings rise.

Yet, the study suggested that it’s the ability to live life on your terms that contributes to happiness, rather than simply having more money to spend.

Speaking to the Guardian, Killingsworth said: “A greater feeling of control over life can explain about 75% of the association between money and happiness. So, I think a big part of what’s happening is that, when people have more money, they have more control over their lives. More freedom to live the life they want.”

Killingsworth added: “Money alone – which we’re already pretty motivated to pursue – is just one small part of the overall equation for happiness.”

So, while you might consider how to grow your wealth, thinking about your purpose and how to use assets to live the life you want is just as important.

That might seem like a simple task, but it’s something many people overlook.

Indeed, a report from Aegon suggests just 1 in 5 people are very aware of the day-to-day experiences that give them joy and purpose in life. In addition, only a quarter of people have a concrete vision of the things and experiences their future self might want.

This lack of understanding of what offers your life purpose could mean you’re missing out on opportunities to use your wealth in a way that may support your long-term happiness.

As a result, considering your priorities could provide a good starting point for creating a financial plan that focuses on your happiness. What would you do if money were no object?

Perhaps you’d like to retire and travel the world, or maybe spending more time with your family would be your priority.

A financial plan could help you create a realistic blueprint for your goals

A tailored financial plan will consider your life goals, and, crucially, it could help you to understand what’s realistic and the steps you may take to achieve them.

You might be daydreaming of retiring early, but are you taking the steps necessary to ensure you are financially secure? Or could you achieve a better work-life balance that brings you happiness now by cutting back your working hours?

By bringing together your aspirations and financial circumstances, a financial plan could demonstrate how you might use your wealth to create the life you want now and in the future.

Contact us to talk about taking control of your finances

Feeling in control of your finances and your future could boost your happiness and provide you with a greater sense of wellbeing. A financial plan could play a role in helping you set out the life you want to lead and how to achieve it.

Please contact us to arrange a meeting to talk about your financial plan and what makes you happy.

Please note:

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

Testimonials

Working with Blue Ocean has enabled myself and my wife to invest our pension savings with the confidence that they are being managed by a professional team of qualified financial advisers. They have been very supportive and responsive when we've requested a detailed analysis of our investment performance and the outcome has been positive in terms of the expected returns. I have recommended family and friends to Blue Ocean and they have been equally very satisfied with the service.

Glen Ridout

Kent

A client since 2011

We would have no problem whatsoever in recommending the services of Blue Ocean for sound financial appreciation and advice, all handled in a friendly, convivial and concerned manner. Blue Ocean are always looking at how they can go that extra mile for their clients. This is a rare positive commodity in any business environment in today's world. The financial advice is always considered and simply explained in terms of what if and if you invested here etc. There is no pressure put on me to invest in high-risk return possibilities and at all stages the advice given is tailored to the perceived situation of their clients.

Barry William Ednie

Tonbridge, Kent

A client since 2013

Over the past 18 years, I have received very reassuring advice on my investments and always been treated in a friendly but professional manner.

Jacqueline Prosser

Surrey

A client since 2001

I have known John for over 20 years and have always been satisfied with his integrity, knowledge and reliability. I recommend him to business and family contacts without reserve.

Paul Richardson

Surrey

A client since 2002

Bespoke service... friendly, helpful staff.

Jane Stevens

Dartford, Kent

A client since 2017

Blue Ocean resolved a difficult situation in a very satisfactory way. The whole staff are extremely friendly and helpful and it was very cost-effective.

Richard Mersh

Kent

A client since 2017

Since we have used John and the team over the years our investments have gone from strength to strength. We’re very happy with the work they have done for us. I am now in a position to retire with no money worries.

Keith Yeates

Kent

A client since 2008

Honest, well versed, ‘personal touch’ business out to make sure everyone has satisfaction.

John Townsend

Hearn Bay, Kent

A client since 2017

I have received honest advice in a relaxed, friendly environment with my personal circumstances paramount.

Janice Hill

Kent

A client since 2009

I love Blue Ocean Hartley! So very helpful and fantastic staff.

Christine Bryant

Dartford, Kent

A client since 2009

Blue Ocean has always given me the help and advice that I feel protects my family’s investments. Not only have we used Blue Ocean for more than 20 years, but the team have always made us feel welcome. Always at the end of the phone for any advice we may need. Many thanks!

Russell Paul David

Rochester, Kent

A client since 2001

I have been advised by Blue Ocean for the past 21 years, and have always found their service sound, helpful and supportive.

Louise Bober

Kent

A client since 1999

Having the benefits of sound financial advice from Blue Ocean for over 20 years, I would recommend them without hesitation.

Andrew Martin

Medway, Kent

A client since 1999

We have used John Doyle and Blue Ocean for over 20 years as our financial adviser for everything from mortgages, pensions, income protection, trusts and investments. His advice has always been realistic, reliable and no-nonsense. He has always understood our requirements and has advised accordingly.

Michaela Franklin

Kent

A client since 1999

I find them very easy to deal with. Extremely knowledgeable and with no pressure.

George Howell

Bexleyheath

A client since 2016

I moved my investments to Blue Ocean in 2014. The advice I have received has been more professional and my investments have performed better. The staff are polite and always quick to respond to queries.

Lee Menzies

East Sussex

A client since 2014

Having been a client of Blue Ocean for the past 3-4 years, I can honestly say there is nobody I trust more with regards to my financial future than John and the team. Too good to be true? Not with Blue Ocean!

Liam Ryan

Essex

A client since 2016

Very good, friendly advice from a good team.

Stephen Williams

Kent

A client since 2010

Knowledgeable, approachable and always happy to discuss my issues.

Michael Southall

London

A client since 2018

Professional and reactive to any questions regarding your investment.

Michael Gould

Kent

A client since 2011