The Beatles told us money can’t buy love.
But can it buy happiness? Economists say yes, to a point.
According to a 2016 study by Case Western Reserve University, household income impacts both emotional wellness and perceived quality of life.
The difference in emotional gains is greatest before $70,000 and reaches zero around $200,000.
Research says dollars do make a difference, and personal finance writers agree.
GOBankingRates surveyed 12 popular finance bloggers and money pros to learn more about the ways in which cash affects the quality of life.
From reducing stress to offering people the freedom to live life as they desire, here are 12 ways money can buy happiness.
1. Money lets you live the life you want.
Robert Farrington’s blog The College Investor helps millennials get out of student-loan debt and build wealth. He has learned that money can help create happiness because it lets you live the lifestyle you want — whether that is taking vacations, going out to dinner with friends or even buying things that make life easier.
For example, Farrington wanted a lifestyle that revolved around his family. “Money has brought me happiness because it has allowed my wife to fulfill her dream of staying home to raise our son,” he said.
“Remember, work to live, don’t live to work,” he added.
2. Money makes frugality a choice.
Although she claims to be a “broke girl” living in New York City, Stefanie O’Connell of The Broke and Beautiful Life said she recently has started to make enough money that frugality has become a choice rather than a necessity. With more money, she now has more options.
“Being limited in what you can buy, or do, or give, or experience because of insufficient funds is undeniably frustrating. Money is a tool that can be leveraged to lift those limitations,” she said. “Having that kind of flexibility in my finances, and in my life in general, makes me happy and grateful every day.”