How important is money to your wellbeing?

While there is no doubt that money is important in that it allows us to meet the basic requirements of living such as food and shelter, but how true is the old saying “money can’t buy happiness”?

Australian Unity conducted a study over a 15 year period to determine what contributes most to the happiness of the Australian population.  The “What Makes Us Happy” report refers to a “golden triangle of happiness” which is supported by three essential pillars for happiness and wellbeing:

• strong personal relationship/s
• financial control
• a sense of purpose

The report suggests that to maintain a sense of wellbeing, regardless of other factors such as age, income and health, all three elements must be present and maintained.

When it comes to financial control, the report concluded that:

“There is no denying that income and wellbeing are linked. Wellbeing rises consistently with household income up to about $100,000, at which point their paths become less intertwined. However, the power of money to affect wellbeing lies in its capacity to alleviate stress and create an environment for happiness. Accordingly, people can achieve normal levels of wellbeing even with low income, so long as they feel in control of how they spend it.”

So while money on its own doesn’t ensure happiness, having control over your finances is an essential part of the puzzle when it comes to your wellbeing. If you are ready to take control of your finances, contact Greentree Financial and find out how.