We’re all different.

Whilst I might laugh at Monty Python, the Office and my kids what might make you laugh might be Friends, Cheers and your kids. Although I’m sure you’d find my two girls would at least raise a light chuckle. They are hilarious….however often it’s not intentionally!

Our tastes in food, music and film might be different.

However there is also loads which unites us…

One of these things is that, on the whole, we have a desire to be happy.

There’s plenty of research into what makes us happy from spending time with the people you love, gratitude, exercise, sleep….the list goes on and on.

However this raises an important question…

Does money make us happy?

Luckily there’s a decent amount of research into the connection between money and happiness….but the results often surprise.

The other day I presented to a room full of business owners and shared the fact that the research clear…

When it comes to money and happiness the research says that it contributes….but only up to a point!

You see the majority of your happiness, based on the research*, says that 50% of our happiness comes from our genetic make up…which clearly we can’t control

What we can control however is the 50% within our influence…

However the majority of this remaining half (40%) is based on our internal state of mind, not on ‘external factors’ and can be enhanced by a range of things including practicing gratitude, meditation and exercise.

The remaining 10% of our happiness is dictated by our circumstances. This includes our level of education, our marital status…and our wealth.

So, wealth has an impact on happiness….but certainly a lot less than you’d think!

Also, there’s an assumption that millions and millions are required to achieve happiness when again the evidence points to a different conclusion…

Recent research indicates that an income of between £50,000 – £60,000 results in emotional well being…but no more.

The research also indicates that after that the impact of our income or wealth on our happiness tapers off and has very little impact.

For me this is where having a financial plan can add a decent amount of value…

After all, if you’ve got a decent level of income today I wonder whether you’ve ensured that the ‘future you’ has the same?

Next time on the blog I’m going to talk about how to spend your money to get more happy….however if we can help plan for your financial future please don’t hesitate to get in touch on 01708 606 202.

* Research conducted by Sonja Lyubonisky in “The how of happiness”