Pursuit of Happiness through Spending

What is happiness? 

It is described as the fulfillment of our most basic needs. In 1943, the psychologist Abraham Maslow suggested that our needs must be satisfied in a particular order, which he described as a “Hierarchy of Needs,” for us to achieve true happiness. 

Though he would add to the hierarchy in subsequent writings, Maslow initially organized mankind’s needs into five groups.

•  Basic Biological Needs: These are the items we must have to survive, such as air, water, food, sleep, etc. When these needs aren’t satisfied, we may feel irritated, tense, or uncomfortable. These feelings of anxiety motivate us to remedy the situation as soon as possible. Once these needs have been satisfied to a certain extent, we may think about other things. 

• Safety Needs: Safety needs have to do with establishing stability and consistency in an unpredictable world. We need the physical security of a home, good health, and employment, as well as the sense of physical security that comes from being surrounded by family and friends. 

• Love Needs: Love and belongingness are next in the hierarchy. Humans have a desire to belong to groups: to families, clubs, work groups, religious groups, even gangs. We need to feel loved and accepted by others. 

• Esteem Needs: There are two types of esteem needs. The first is self-esteem, which results from competence or the mastery of a task. The second has to do with the recognition of your positive actions by others. We need to be respected and, interestingly, we also have a need to respect others. 

• Self-Actualization: This refers to our inward desire to become everything we’re capable of becoming. Only people who have satisfied ALL their other needs can maximize their potential. They can seek knowledge, peace, aesthetic experiences, self-fulfillment, etc.

The reasons for money making us happy are mostly speculative, of course, and change over time as our needs, values, and priorities change. 

More money typically brings more complexities, however, that can absolutely impact our happiness. And we all know that people still have problems regardless of income, they’re diverse kinds of problems. 

So, if money alone isn’t a surefire bet for increased happiness, what is?

Some say the answer lies in the well-being theory, which suggests an individual’s happiness is optimized when they report prominent levels of several different areas in their lives. 

Unsurprisingly, these areas can be improved independent of changes to income.

• Positive emotion refers to how you view your past, present and future. People who cultivate optimism report higher levels of positive emotion and therefore happiness.
• Engagement corresponds to how much “flow” or immersion you experience in tasks during your day. High scorers enjoy activities where they are so absorbed they often “lose track of time.”
• Relationships are a cornerstone of high well-being. This doesn’t necessarily mean more relationships, rather those that are supportive and/or fulfilling in nature.
• Meaning involves believing in a clear purpose to your life and your contribution to or belonging to something greater than yourself.
• Accomplishment is defined as the pursuit of mastery over a skill, hobby, sport, educational endeavor, or professional goals.