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Money Cannot Buy Happiness

their income.

--Relative income, rather than any certain level of income, affects well-being. If you get richer than your peers, you may feel you're better off than they are. But soon you'll make richer new friends, so your relative wealth won't be greater than it was before.

-- When you start making more money, you spend more time making money -- and have less leisure time -- than you did before.

--People quickly get used to all the new stuff their money can buy.

. Kahneman and his colleagues say, "The activities that higher-income individuals spend relatively more of their time engaged in are associated with no greater happiness, but with slightly higher tension and stress".

They add, "This focusing illusion may lead to a misallocation of time, from accepting lengthy commutes (which are among the worst moments of the day) to sacrificing time spent socializing (which are among the best moments of the day). "The long-term effect of income gains becomes relatively small because attention shifts to less novel aspects of daily life."


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