The saying "Money can't buy happiness" is becoming outdated as research increasingly suggests otherwise.
A study from Princeton University found that an annual income of 75,000 USD increases daily life satisfaction. Another 2021 study by Matthew Killingsworth of the University of Pennsylvania indicated that happiness continues to rise with income beyond this threshold.
However, money can also cause psychological turmoil and damage relationships. Rachel Cruze, a financial expert at Ramsey Solutions, outlines three ways money can ruin your life and how to regain balance after a crisis.
Losing yourself
Success is often equated with wealth. Many people don't feel successful unless they possess or are building significant assets. Money, whether they have it or not, influences how they perceive themselves and their identity. Linking net worth to self-worth can become a dangerous problem.
Cruze suggests it's challenging to separate the two and ask yourself, "Who am I without my possessions, without success, without money?" If you feel worthless when not constantly producing value, it's a warning sign.
"Making money is only part of who you are, just like your ability to save, invest, and support your family, but it's not everything," she said.
To avoid this toxic mix of net worth and self-worth, Cruze recommends viewing money as a neutral tool that doesn't define you. You can cultivate contentment by practicing daily gratitude. Simultaneously, build your self-worth on sustainable qualities that aren't affected by financial loss.
Damaging relationships
Money is often the leading cause of divorce, but few realize it can harm other relationships. According to the PayPal Money Habits Study, 25% of Americans have lost friends due to financial conflicts, mainly unpaid loans or disagreements over splitting bills.
A LendingTree report also revealed that while 30% of people have lent money to friends, 10% admit the relationship deteriorated or ended because the loan wasn't repaid.
Wealth can isolate you from reality, creating an affluent "bubble" that leads to a lack of empathy and compassion for others.
Rapid wealth accumulation can distance you from friends and even family, exposing negative traits and disconnecting you from what truly matters. To prevent this, Cruze advises using money to help others, building a life centered on loved ones, and teaching children responsibility through chores and part-time jobs, avoiding dependence.
Influencing ethics
Wealth negatively impacts ethics and fairness.
The University of California's Center for the Study of Happiness found that wealthy individuals often display less empathy and act less kindly than those with lower incomes. A report in Psychological Science also indicated that lower-income individuals are better at reading facial expressions, demonstrating greater empathy.
To prevent unethical behavior caused by money, practice gratitude to maintain humility and social connection. Engage in philanthropy to cultivate empathy and community awareness.
Social psychologist Adam Grant of the Wharton School at the University of Pennsylvania emphasizes the role of these activities in developing social responsibility.
Regular self-reflection helps evaluate values and actions, recognizing when money negatively influences your sense of right and wrong.
This allows for behavior adjustments, upholding ethical standards, balancing financial goals with integrity, and avoiding a selfish, dehumanizing lifestyle. These actions contribute to maintaining empathy, social responsibility, and building a sustainable, civilized community.
Ngoc Ngan (Theo Yahoo Life)
