A-Z of personal finance: H for Happiness and Money

Does Money Buy Happiness?

The constant message relayed in our society that money is the most important thing in our lives and the constant desire for more have had far-reaching consequences for our societal value system and morals. This unending pursuit of money has damaged family relationships, the environment and global socioeconomic systems.

Sadly, in our consumption-driven society, many of us have come to believe that all our worries would be solved if we have more money. Indeed, wealth has become the ultimate measure of who we are, and we have become defined by it. Chasing after money for its own sake can damage our value system, and we pay for it in time, health, and stress.

“H”: Happiness and Money

What does Money Mean to You?

Do you have a healthy relationship with your money? Do you worship it? Or do you use it as a tool to achieve your goals? Does your life depend on it? What really matters to you? What really does make you feel happy and fulfilled?

It is important to understand your own money personality and to put it in the right perspective. The ways in which you make money and how you spend it reveal a lot about your personality.

Maslow’s “Hierarchy of Needs”

What do you need? Abraham Maslow was an American psychologist best known for his theory of the “hierarchy of needs” which he developed in the mid-1900’s. This model served as a tool for understanding human motivation and development.

The first (and lowest) level involves the most basic needs; that is, what a person needs in order to stay alive such as air, water, food, sleep, warmth, shelter, and hygiene. At the second level, Maslow places safety, security, employment, money and financial stability, and good health. By the fifth level the human being seeks self-actualization and fulfillment.