Money Buys Freedom—But Can It Buy Happiness?

We’ve all heard it: "Money can’t buy happiness." Usually said by someone who… well, has money. On the flip side, people struggling to pay rent might say, "I'd rather cry in a penthouse than in a cramped studio apartment with a broken radiator." So, which is it? Does money truly bring happiness — or just fewer problems?

Let’s Start With the Obvious: Money = Freedom

Money opens doors. It gives you choices. Want to leave a soul-sucking job? Hire a therapist? Take a sabbatical in Spain? Money can make it happen.

It buys time, flexibility, comfort, and autonomy — all crucial ingredients for a well-lived life. When you’re not stuck in survival mode, you can focus on things like creativity, self-growth, and relationships. You get to say "no" to what drains you and "hell yes" to what lights you up. In that sense, money is like oxygen: you don’t think about it when you have enough — but when you don’t, it’s all you can think about.

What the Science Says

Studies show that:

Happiness increases with income up to a certain point (often cited around $75K–$100K/year).

Beyond that, emotional well-being levels off — though life satisfaction (that zoomed-out view of your life) may keep climbing.

The benefits of money plateau because, after covering you needs and some wants, more dollars don’t solve emotional gaps or existential angst.

Talk to high earners, and you'll often hear a different story: “I make great money, but I feel like I never stop working.” With financial success comes:

Pressure to maintain a lifestyle (you get used to the nice car, private school, vacations — and now you have to keep earning to fund it),

Responsibility (to employees, partners, shareholders, or family),

Constant decision-making (which is mentally draining),

Less free time (because when you're successful, everyone wants a piece of you).

In fact, many wealthy individuals experience what's called the "affluenza trap" — the feeling of being chained to their earnings, even when they no longer need the money. Work becomes a treadmill, not a vehicle of joy. And here’s the kicker: they often don’t feel free at all.

Meanwhile, on a Remote Island…

Now picture this: a small coastal village, a remote island, or a countryside town where people live modestly. They fish, farm, gather, nap, and laugh — all without 5-year plans or spreadsheets.

These communities often:

Value relationships over status,

Work fewer hours (but more communally),

Spend time in nature (a known happiness booster),

Experience less social comparison — because everyone’s roughly on the same playing field.

Sociologists call this the "contentment of simplicity." In places where people aren’t constantly exposed to bigger, flashier lifestyles, there’s far less FOMO, and far more appreciation for the here and now. Some happiness studies even show that people in poorer but tightly-knit, slower-paced cultures report higher well-being than wealthy urban dwellers.

So, What’s the Real Deal?

Here’s the paradox: Too little money makes life hard — and yes, happiness goes up when financial pressure goes down. But too much focus on money can lead to burnout, disconnection, and the constant fear of losing it all.

The sweet spot? Having enough to meet your needs and some dreams, with time and freedom to enjoy it, and relationships, purpose, and presence as the real wealth. Money gives you the stage. Happiness is what you perform on it.