Tuesday, July 24, 2012
Money may affect your happiness differently depending on …
• … what kind of person you are. Money has different value to different people. You might love to collect modern art, or you might love to rent old movies. You might have six children and ailing, dependent parents, or you might have no children and robust parents. You might yearn for your own horse—or your own hamster.
• … how you spend your money. Some purchases are more likely to contribute to your happiness than others. You might buy Champagne, or you might buy a dog. You might splurge on a big-screen TV, or you might splurge on a new bike.
• … how much money you have relative to the people around you, and relative to your own experience. Are you richer or poorer than most of your friends and family? Do you have more or less than in the past? The absolute level of wealth matters to happiness, but relative ranking matters, too.