What kind of money do you have?
New research from the Office for National Statistics (ONS) in the United Kingdom suggests that the type of money one accumulates matters a great deal. The ONS asked people to rate their wellbeing on a scale of 0-10 on a series of questions like ‘overall, how satisfied are you with your life nowadays?’ and ‘overall, to what extent do you feel the things you do in your life are worthwhile?’
Net financial wealth, which includes stocks, shares, and savings, had the strongest relationship with positive well-being. Increasing property wealth or personal pension wealth, on the other hand, did not measurably increase wellbeing, according to ONS. Overall wealth had a positive effect on increasing levels of life satisfaction, sense of worth, and happiness. Moreover, greater wealth also decreased levels of anxiety. When the type of wealth was considered, net financial wealth, which includes stocks and savings, was most strongly related to personal well-being. Increasing property or personal pension wealth, on the other hand, did not result in greater wellbeing. One explanation might be that the discretionary money that is generated through stocks and savings allows individuals greater freedom of choice in their lifestyles. Having these choices has an impact on happiness- even if people never act upon them.
Interestingly, the results also indicated that households with a greater proportion of income coming from state benefits such as housing assistance or a jobseeker’s allowance experienced lower personal wellbeing, with the impact appearing to be “stronger for men than for women,” according to the ONS.
So, yes, money does buy happiness— if it’s the right kind.
