29-Year-Old Millionaire Reveals Whether Or Not Money Truly Buys Happiness
Does financial freedom equal satisfaction?
PeopleImages.com - Yuri A | Shutterstock Does money really buy happiness? Some people would be quick to say yes, picturing how much better their lives would be if they had enough money not to worry.
Yet, there are unhappy wealthy people, just as there are people living paycheck to paycheck who are perfectly content. It all truly depends on the person and their situation.
One millionaire threw his hat in the ring, sharing his answer to the long-debated question.
The 29-year-old millionaire revealed whether or not money truly buys happiness.
Timothy Armoo, who was just 27 years old when he sold his influencer marketing firm, “Fanbytes,” for an eight-figure sum, confessed that having money does not necessarily equate to happiness — but it does make you happier.
To determine how money influences happiness the millionaire asked people to rate their happiness on a scale from 0 to 10, leaving money out of the equation entirely.
“If you are a four in happiness, having more money will generally make you a six,” Armoo explained. “Or if you’re a three, it should make you a five.”
However, he noted that just because you have money and your overall happiness has increased does not mean that you are necessarily happy. If you were at a one, came into some money, and ended at a three, you still aren't all that happy.
“It just means you are happier because you have less problems,” he added.
Some people assume that having more money will bring you complete happiness, but that's just not true. While it can certainly improve your life, as Armoo noted, money is not the only thing that affects your happiness. The relationships you have and the life you lead also come into play.
Sure, if you’re in debt or struggling to pay your rent, a surplus of cash would eliminate most of your stress. However, if there are stresses in your life that money can’t fix, then it is impossible to be 100% happy just from an increased cash flow.
Research regarding whether or not money buys you happiness has yielded contrasting results.
A study based on a poll conducted by Gallop found that people who earn higher incomes report being happier — but only when they receive up to an annual $75,000. After this point, an individual’s happiness appears to plateau, inferring that money only brings happiness to a certain point.
Perhaps once a person’s basic financial needs are met — they can pay their bills without worry, have no debt, don't worry about affording groceries, and have some extra money left for leisurely spending — their stress is greatly reduced, and they feel happier overall. After that point, according to the study, finances have no impact.
However, contrary to the Gallop poll, recent research claims that well-being rises with income, even in those who make beyond $75,000 annually.
It's important to note that there is a significant flaw in both research studies.
According to Psychology Today, two major types of well-being are studied by psychologists — evaluative and experienced.
Evaluative happiness refers to a person’s overall assessment of their life based on reflective judgment, while experienced happiness is more fleeting and is tied to one’s current environment and activities. Both studies focused on experienced happiness rather than evaluative.
Perhaps those who felt unsatisfied despite their earnings were able to achieve a personal breakthrough at some point in their lives before making more money and felt happier then. Meanwhile, those who claimed that they were not entirely happy with their lives may have felt differently for a short period of time after earning more money.
While the question of whether or not money truly buys happiness is a complex one with no correct answer, it is safe to assume that it certainly buys you less financial stress and more financial freedom.
The annual raise you get at work means you can finally take your family on that vacation you’ve wanted to do for so long. Maybe you can finally pay off your student debts or simply stop stressing about how you will afford rent, groceries, childcare, health insurance, and the myriad other things you must pay for in today's world.
That doesn't mean, however, that your life is entirely stress-free. You still may have physical and mental health struggles, family member estrangements, and heartbreaks that cannot be fixed even with all of the money in the world.
Megan Quinn is a writer at YourTango who covers entertainment and news, self, love, and relationships.