Money and Happiness: Finding Bliss in Diversified Wealth

April 3, 2024

I think it’s fair to say that at some point in each of our lives, we’ve heard the phrase “money can’t buy happiness”, or some version thereof. Usually meant as a cautionary comment against greed or those prioritizing money, the phrase has yielded some interesting and surprising research studies over the past decade or so.

As economists and psychologists have dug deeper into the relationship between money and happiness, it turns out that it’s quite complex and extremely nuanced. Dr. Richard P. Himmer writes about this relationship in his Kiplinger article linked below, in which he references two studies with different conclusions on increases in income and assets and their correlation to overall happiness and well-being.

While the details of each study’s findings can be found in the article below, Himmer’s distinction, and main point, is that no matter what level of income or overall net worth a person might have achieved, true wealth is determined by more than just money. Himmer defines wealth as “having enough: enough love, friends, hobbies, time and money. Therefore, money is a subset of wealth, not the other way around”.

As discretionary asset managers, rates of return and capital growth are obviously very important. But we also strive to be true wealth managers—understanding your wants, needs, and lifestyle so that you can enjoy the accumulated capital in a way that’s most fulfilling. Having a diversified wealth strategy is just as important as having a diversified investment portfolio, and we at American Trust want to play a role in both. Check out the Kiplinger article below for some interesting findings on money, wealth and happiness, and work with your Fiduciary Investment Advisor to make sure your assets are on track to be a true pillar of your overall wealth.

Can Money Buy You Happiness? Yes, It Can. However… | Kiplinger

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