Does Money Buy Happiness?

“Did the money make you happier?”

That’s what we asked Sam Parr in our last episode about the moment life-changing money hit his account.

His answer: Hell yes.

And every time he checks his balance, it still does. 

This got us thinking: Does money buy happiness?

Here’s what we came up with: 

1. Yes, money buys happiness.

2. No, money doesn’t buy happiness.

3. Sort of, it depends.

Let's break it down.

Check out our full episode here. It just dropped this morning!

Yes, Money Buys Happiness

Money makes an undeniable impact on happiness.

It doesn’t make you happy, but it can sure make you happier.

But only up to a certain point.

It makes you happier by eliminating money stress. 

Addition by subtraction. 

Mortgage payments, student debt, childcare, and daily necessities can be a heavy burden. 

Enough money eliminates the stress, anxiety, and fights that crop up from this burden.

It also gives you the freedom to book a family vacation or buy those David protein bars (seriously, $4?!), without thinking twice. 

How much is enough?

Last week, Sam gave us his concrete answer:

25 × your annual expenses in liquid assets.

Why 25 times? 

It allows you to withdraw from your portfolio at a 3% rate per year. 

If you agree with Sam that the market will continue to go up over time, you shouldn’t have to worry about running out of money. 

It’s that simple:

• Ask yourself: How much money do I need to spend each year to live the life I want?

• Multiply that by 25.

• Easy enough, right?

No, Money Doesn’t Buy Happiness

Money can buy you anything you want. 

But it isn’t a guaranteed ticket to happiness.

No amount of money is going to make you happy if you aren’t happy without it. 

Look at the classic study: “Lottery Winners and Accident Victims.” 

In short—after studying lottery winners and paralyzed accident victims—they found little difference in each group’s ability to enjoy things. 

Lottery winners get an initial surge in happiness. It fades. And you revert back to your previous happiness baseline.

If you’re a parent like us, we hope you agree:

There’s no amount of money that would bring you more happiness than your kid(s).

With that being said, it would still be nice to no longer worry about expenses.

Wrap Up

So, does money really buy happiness? Here's our take:

Money absolutely can buy comfort and freedom from financial stress, especially if you follow practical rules like Sam’s 25× annual expenses. 

But genuine happiness often depends on relationships, purpose, and meaningful experiences.

At the end of the day, it’s not about being rich. It’s about having enough and knowing what to do with it.

Thanks for reading and stay tuned for more real conversations on Two Dads in Tech.