Financially fabulous
The relationship between money and happiness is a complicated one. Emilie Martin unpicks it and shares tips from the experts to boost our sense of financial wellbeing
The idea that wealth and happiness go hand in hand is at the heart of many a popular ‘rags to riches’ narrative. Just look at Cinderella, Aladdin and Dick Whittington, all of whom made their fortune in one way or another and lived happily ever after.
With this kind of thinking instilled in us from a young age, it’s hardly surprising that many of us believe having more money will contribute to having a happier life. A poll carried out by YouGov in the UK this year showed that around three-fifths of respondents (62%) thought having more in the bank would lead to greater feelings of happiness. But are they right? In reality, the answer is more nuanced than you might think.
HAVING ENOUGH
At a fundamental level, having enough money coming in to cover life’s essentials, without feeling that you’re struggling or getting into debt to pay for things such as groceries, housing and bills, will undoubtedly alleviate negative feelings. ‘Not having sufficient money to make ends meet can cause a huge amount of unhappiness, stress and worry, so the idea that money can’t buy you happiness isn’t entirely true,’ says Ellie Austin-Williams, author of Money Talks: A Lifestyle Guide For Financial Wellbeing. ‘Money can buy you financial stability, which removes a huge pressure that many individuals and families experience.’
Research by the mental health charity Mind highlights the negative impact that feelings of shame, guilt, stress and fear around money can have on our wider mental health. It’s something that Selina Flavius, financial coach and author of Black Girl Finance: Let’s Talk Money, has seen first-hand in her work with clients.
‘In a consumerist culture where value is placed on newness, reinvention and immediacy, money can also be tied to our ideas of self-worth,’ she says. ‘It’s not uncommon when struggling with money or not being able to afford the latest must-have item to feel bad about yourself.’ Inevitably, this is going to have an impact on how happy or unhappy you feel.
What ‘enough’ to cover essential outgoings looks like will vary from one person to the next and depends on a whole range of factors – not least the cost of renting or paying the mortgage on a property in the area you live in, whether or not you have people who depend on you financially and how much your household bills and council tax come to each month. The most recent calculations by the Joseph Rowntree Foundation show that, on average, a single person would need to earn £29,500 a year to have a minimum acceptable standard of living (defined as ‘having what you need in order to have the opportunities and choices necessary to parti
