🧠 Money and Happiness: Myth or Reality A doctoral-level analysis of wealth, well-being, and subjectivity Exclusive Guide from the Blog of Serafim Don Manuel

The relationship between money and happiness is one of the most debated topics in psychology, sociology, and economics. The central question is whether material prosperity guarantees subjective well-being or whether happiness depends on more complex factors such as social bonds, emotional health, and existential meaning.

Money as a Social Signifier

Money, beyond being an economic resource, is a symbolic signifier that structures social and subjective relations. It may represent:

• Security: the ability to meet basic needs.
• Power and status: positioning within social hierarchies.
• Recognition: external validation of achievements.

The value attributed to money is culturally constructed and psychologically interpreted, making its relationship with happiness non-linear.

Empirical Evidence

Research in economic psychology demonstrates that:

• Up to a certain point, increased income is associated with greater life satisfaction.
• After reaching a level of comfort, the marginal impact of income on happiness decreases significantly.
• Happiness is more strongly correlated with interpersonal relationships, life purpose, and mental health than with wealth accumulation.

Psychoanalytic Perspective

In psychoanalysis, money is often interpreted as a metaphor for desire and power. Freud linked it to the functions of retention and release, associating it with the anal stage of childhood development. Thus:

• Accumulation of wealth may symbolise the pursuit of control and immortality.
• Compulsive spending may express emotional emptiness.
• Guilt associated with money reveals unconscious conflicts between pleasure and prohibition.

Behavioural Economics and Positive Psychology

Behavioural economics shows that individuals tend to overestimate the impact of wealth on future happiness, a phenomenon known as money illusion. Positive psychology emphasises that:

• Experiences (travel, leisure, learning) generate more lasting happiness than material goods.
• Generosity and altruism increase subjective well-being, suggesting that using money for others may be more fulfilling than individual consumption.

Conclusion

The relationship between money and happiness is paradoxical: while money is essential to guarantee minimum living conditions, it does not ensure complete happiness. The myth lies in the belief that wealth alone leads to well-being. The reality, supported by empirical evidence and psychological theory, indicates that happiness depends on multiple factors — emotional bonds, mental health, and existential purpose — in which money acts only as a mediator, not as an absolute determinant.

📢 This article is part of the Blog of Serafim Don Manuel — visit: www.delta787.com.br