The old adage "Money can't buy you happiness" does not seem to be True in the research literature. Those with higher incomes or those who live in more affluent societies do tend to be happier. However, when is this not the case?

Question

Quizplus · Accepted Answer

When people compare themselves to those who make more, their happiness can be negatively impacted. This phenomenon is sometimes referred to as the "relative income hypothesis" and suggests that people's happiness is influenced not just by their absolute level of income, but also by how they compare to others around them. So, even if someone has a relatively high income, if they constantly compare themselves to those who make more, they may not experience the same level of happiness as someone with a lower income who does not engage in such comparisons.

The Old Adage "Money Can't Buy You Happiness" Does Not