How Money Can Buy Happiness, According to an Expert

Can money buy happiness? It’s the age-old question that no one’s been able to answer. There’s countless memes about how it’s easier to cry in a Ferrari than on a bicycle; people often lash out or roll their eyes at celebrities when they talk about going through hard times. In truth, though, money is not the antidote to all problems. It is, however, a great tool. And Happiness expert, New York Times bestselling author and podcast host, Gretchen Rubin, believes that money can buy happiness.

Rubin has spent over a decade exploring happiness, habits, and human nature. And now, she’s using her expertise to further dissect the intersection between happiness and finances. In addition, Rubin has also paired up with Northwestern Mutual to help more and more people unlock their financial awakening. In fact, more Americans than ever feel an urge top start pursuing dreams right now instead of waiting for “someday.” Northwestern Mutual has coined this term “The Great Realization”, and it refers to the moment where we question everything and our priorities come into sharp focus.

That said, most people don’t know how to use money to reach their goals or full the cost of them. This inadvertently makes us shy away from pursuing our dreams. But we’re all deserving of happiness and living a fulfilling life—which is why I sat down and asked Gretchen Rubin my most burning questions about happiness and finances. I got the burning tea on everything from financial wellness to money stress and everything in-between. Keep scrolling to learn how money can buy happiness in Gretchen Rubin’s exact and own words.

1. The conversation around finances has shifted over the last few years, with things like “financial wellness” being touted as a self-care trend. However, money is still a notoriously emotionally charged topic. Why do you think money’s such a big stressor, and how do you handle money stress in life?

Gretchen: “It’s certainly true that within the larger subject of happiness, the topic of money is especially emotionally charged. Often, people think there is a right way to approach finances and their money situation. It can be overwhelming. The truth is that we each have our own values, our own interests, our own circumstances. So for each of us, our approach to finances should be based on what works best for us. That is why it is also so important to partner with a financial advisor that understands your unique needs, which I have experienced first-hand in meeting with a Northwestern Mutual advisor.

For me, I also find, action is the antidote to anxiety. By taking concrete steps toward an aim, I give myself more peace of mind. Also, I’ve learned to ask for help. If I don’t have the expertise or experience to deal with an important area, I find help from people who are knowledgeable. That’s one reason why, for many people, In the area of money, working with a Northwestern Mutual financial planner can be a huge relief.”

2. What advice would you give to someone with a lot of anxiety around finances? How can we all work to improve our relationship with money?

Gretchen: “Here are a few suggestions that tend to work for most people:

1. Identify the problem. Are you anxious because you don’t know your financial situation? Because you have little savings? Because you’re not sure how to plan for the future? Identifying the problem often makes it easier to spot possible solutions
2. Take the first step. Do that one piece of research. Write one email. Make one phone call. The first step is often the hardest, and once we get started, it’s far easier to continue.
3. Ask for help. Why is it so hard to ask for help? I don’t know! But once we ask for help, it’s often astonishing how much easier things become. Northwestern Mutual has financial advisors that you can connect with who understand your unique needs and act as a support system when you are feeling overwhelmed.”

3. They say money can’t buy happiness, but one thing it can grant you is freedom—freedom to pursue the things you want in life, which can grant happiness. So, this goes back to the age-old question: Can money buy happiness? If not, what can it buy? How can we use money to add more happiness into our lives?

Gretchen: “While money can’t buy happiness, it can buy things that can greatly contribute to happiness. After the past two years of unprecedented situation after unprecedented situation, many Americans are having a collective moment of awakening, coined by Northwestern Mutual as “The Great Realization.” This is the moment where our priorities come into sharp focus and question everything: where we live, where we work and most importantly, how we are spending our lives. For many, this may involve re-prioritization to travel more, buy a home, start a business, etc. Therefore, in this instance money might support an unforgettable trip, a new home, starting a new business, a sense of security and possibility, visiting family and friends, freedom from worry, donating to the causes you believe in, or providing for others.

Philosophers and scientists agree that having strong ties to other people is a key to happiness, and money can pay for a plane ticket to visit your parents. Research also shows that novelty and challenge make you happier, and money can pay for the guitar and guitar lessons you’ve always wanted.

There is no one-size-fits-all approach. Each of us has our own dreams for what we want but we may not know exactly how to put them into action and just how much it would cost. According to a recent brand study from Northwestern Mutual, only 19% of Millennials with significant life goals know the exact cost of pursuing them. For many people, working with a good financial planner, such as I have found in meeting with a Northwestern Mutual advisor, can help us to identify the “someday” we want to achieve, today, and also how to create the right individualized approach, so we can create the life we want.”

In conclusion…

When it comes down to it, the best thing we can do is approach finances in a way that works best for us. Get clear on your goals and identify any money problems you may have. Once you’ve done that, start taking concrete steps to get there. Oftentimes, action is the antidote to anxiety. And if it comes down to it, don’t be afraid to ask for help.

Money will not directly buy you happiness. What it will buy, though, are things that can greatly contribute to happiness. At the end of the day, money is a tool. It is meant to be used in a way that gets us where we want in life and helps make our goals come to fruition.