Can money buy happiness? -
Can money buy happiness? -
Patricia Lovett-Reid, July 31, 2010
I'm feeling a little philosophical this week and I thought I would try to tackle an age-old question: Can money buy you happiness?
A recent Gallup World Poll would indicate that it can't — sort of. Gallup uses two major categories of happiness: overall life satisfaction; and more moment-to-moment enjoyment of life. When comparing happiness from one country to the next, Gallup found that richer nations and individuals tended to be more satisfied with life.
Where can I find financial counselling?Within that richer group we see some interesting things. The richest country on earth is the United States. But it isn't the happiest. It comes in 16th place. Two countries with much less money than the U.S. tied for first place: Denmark and New Zealand. Apparently, having your social and psychological needs met boost your overall happiness. It seems that Denmark and New Zealand are good at providing social support, allowing their citizens to make the most of their abilities and offer fulfilling employment.
Some economists believe that, on an individual level, money increases happiness at the low end of the pay scale. But once a person's basic needs are met, money doesn't do much to boost happiness.
* Gallery: The world's happiest countries
So what does?
According to a new study from The Financial Planning Standards Council (FPSC), those who have engaged in comprehensive, integrated financial planning are significantly more optimistic about their personal wellbeing as compared with those who have not.
On the surface, it seems logical that financial planning could help you achieve not just your goals, but peace of mind. But there has never been concrete, empirical evidence. Just how much does achieving life goals and managing through difficult times affect one's confidence? And, how is financial planning integral to one's financial and emotional wellbeing — in good economic times and in bad?
More on investing:
Five job sectors hiring nowWhy a vacation is good for youDo you really need $1M to retire?What's Facebook really worth?Blog: Rent a friend for $10/hour?
The study surveyed over 7,000 Canadians and divided them into three groups:
Those with comprehensive, integrated planning — in which one's main financial advisor has provided financial planning for major life goals and events, or at least three of the following components: household budgeting, tax, retirement, estate planning, investing, and debt or risk management.
Those with limited financial advice where an individual's main advisor provided advice or services for just one or two of the components I've already listed.
Those with no financial advice. This group includes people who describe themselves as "do-it-yourselfers" as well as people who don't do any financial planning whatsoever.
The results have been analyzed in a variety of income categories to eliminate net worth as an influence.
What did they find?
Individuals with financial plans feel better prepared to deal with difficult economic times. They have peace of mind. Let's see if we can connect the dots. According to the study, Canadians with financial plans are more optimistic about their well-being than those without a plan. The feel they are ready to deal with contingencies and economic upheavals. They are more confident that they will reach their life goals — not just their financial goals. Furthermore, there is measurable proof that people who have engaged their advisors only for "as-needed" advice are being left behind by Canadians with comprehensive integrated planning.
Video from BNNAgrium Outlook [08-25-10 2:05 PM]
BHP's Strategy [08-25-10 9:45 AM]
Surprise Gains from CIBC [08-25-10 8:10 AM] If you put these two studies together you begin to get a clear picture of money's relation to your happiness. Without any money whatsoever, it's unlikely that a person will be happy. But once you have enough for food, shelter and basic needs, money no longer is a significant contributor to your smiles. At this point, a combination of social support, career fulfillment and a financial plan give you peace of mind and add to your happiness. I suppose we shouldn't be surprised. A comprehensive financial plan frees you from worrying about disasters. You can be confident that no matter what happens, you'll still be okay. What's more, you can add some amount of certainty to the future. You can
Patricia Lovett-Reid, July 31, 2010
I'm feeling a little philosophical this week and I thought I would try to tackle an age-old question: Can money buy you happiness?
A recent Gallup World Poll would indicate that it can't — sort of. Gallup uses two major categories of happiness: overall life satisfaction; and more moment-to-moment enjoyment of life. When comparing happiness from one country to the next, Gallup found that richer nations and individuals tended to be more satisfied with life.
Where can I find financial counselling?Within that richer group we see some interesting things. The richest country on earth is the United States. But it isn't the happiest. It comes in 16th place. Two countries with much less money than the U.S. tied for first place: Denmark and New Zealand. Apparently, having your social and psychological needs met boost your overall happiness. It seems that Denmark and New Zealand are good at providing social support, allowing their citizens to make the most of their abilities and offer fulfilling employment.
Some economists believe that, on an individual level, money increases happiness at the low end of the pay scale. But once a person's basic needs are met, money doesn't do much to boost happiness.
* Gallery: The world's happiest countries
So what does?
According to a new study from The Financial Planning Standards Council (FPSC), those who have engaged in comprehensive, integrated financial planning are significantly more optimistic about their personal wellbeing as compared with those who have not.
On the surface, it seems logical that financial planning could help you achieve not just your goals, but peace of mind. But there has never been concrete, empirical evidence. Just how much does achieving life goals and managing through difficult times affect one's confidence? And, how is financial planning integral to one's financial and emotional wellbeing — in good economic times and in bad?
More on investing:
Five job sectors hiring nowWhy a vacation is good for youDo you really need $1M to retire?What's Facebook really worth?Blog: Rent a friend for $10/hour?
The study surveyed over 7,000 Canadians and divided them into three groups:
Those with comprehensive, integrated planning — in which one's main financial advisor has provided financial planning for major life goals and events, or at least three of the following components: household budgeting, tax, retirement, estate planning, investing, and debt or risk management.
Those with limited financial advice where an individual's main advisor provided advice or services for just one or two of the components I've already listed.
Those with no financial advice. This group includes people who describe themselves as "do-it-yourselfers" as well as people who don't do any financial planning whatsoever.
The results have been analyzed in a variety of income categories to eliminate net worth as an influence.
What did they find?
Individuals with financial plans feel better prepared to deal with difficult economic times. They have peace of mind. Let's see if we can connect the dots. According to the study, Canadians with financial plans are more optimistic about their well-being than those without a plan. The feel they are ready to deal with contingencies and economic upheavals. They are more confident that they will reach their life goals — not just their financial goals. Furthermore, there is measurable proof that people who have engaged their advisors only for "as-needed" advice are being left behind by Canadians with comprehensive integrated planning.
Video from BNNAgrium Outlook [08-25-10 2:05 PM]
BHP's Strategy [08-25-10 9:45 AM]
Surprise Gains from CIBC [08-25-10 8:10 AM] If you put these two studies together you begin to get a clear picture of money's relation to your happiness. Without any money whatsoever, it's unlikely that a person will be happy. But once you have enough for food, shelter and basic needs, money no longer is a significant contributor to your smiles. At this point, a combination of social support, career fulfillment and a financial plan give you peace of mind and add to your happiness. I suppose we shouldn't be surprised. A comprehensive financial plan frees you from worrying about disasters. You can be confident that no matter what happens, you'll still be okay. What's more, you can add some amount of certainty to the future. You can
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Thursday, August 26, 2010
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