People throughout history have debated the question, “Does money equal happiness?” There is an accurate, definite answer that suggests the two are more related than we think However, there is another piece to the equation we’ve been leaving out: what you spend your money on.

The conventional view on happiness being a byproduct of money has historically been that the two are not correlated, but new evidence shows they are. In 2021, a University of Pennsylvania Study showed that happiness rises with income and that there is no inflection point at which it stops. In other words, it kept increasing, seemingly to no avail. The data directly shows that the richer someone is, the happier they become. Reportedly, people not only become more optimistic when advancing in their careers and economic situations but also are more comfortable with their lives when they have higher figures in their bank accounts. Money equates to happiness because, in our current society, you can’t have experience or material possessions without some level of affluence.

The amount of money you make influences stress in your daily life. Money, or the lack thereof, leaves people feeling more anxious about themselves. Thriving Wallet, designed to help people with financial grievances, surveyed around 3000 US adults from all regions, divisions, races, and ethnicities in 2022. In this instance, their results speak for themselves. They identify money as the top stressor for Americans, with 90% of individuals saying that money significantly impacts their stress levels.

The research shows that people are constantly worrying about what they can afford. The diverse profile of interviewees suggests that it’s not just a specific social class or race that has these concerns – it’s everyone. Nobody wants to be in debt, especially in the USA, as it is exceedingly challenging to bounce back. Our country works in such a way that the rich get richer, and the poor stay poor. This cycle of ‘wealth trapping’ is mainly due to the exacerbation of income inequality and the transition from pension-based retirement plans to 401(k)s.

Money also buys experiences, so without a source of income, you can’t experience what others with money can. The age-old argument against ‘money = happiness’ is that of experience. Many people say that the one thing you can’t purchase with money is experience, but this is not true. Money buys everything in our current society, from Tic-Tacs to entire sports teams. It’s more meaningful for someone to purchase an experience. A recent study by Cornell University students found that buying an experience over something material made people happier. The study proves that while money can ultimately buy happiness, it is only if you spend it right. People may be more likely to purchase something material, but that doesn’t mean it’s the right decision. The reason items tend to be worse for a person’s happiness is due to buyer’s remorse and comparisons to other people. A flaw in human ideology is that, unfortunately, people are never happy with what they have – people tend to want what others have.

In short, money does buy happiness. How you spend your money determines how much it influences your well-being. Buying materialistic things is much worse for you – with buyer’s remorse and everything, you will feel worse. You will be happier and much better off buying experiences. If nothing else, take this as a lesson.