SFG Update: Can Money Buy Happiness for Millionaires?

Stearns Financial has studied this question of Money & Happiness with real time input from the successes and failures of our clients in various stages of their life. For the most part, our clients have figured out how to have their cake and eat it too. Our 4^th Quarter Champions research showed:

• Our clients have greater satisfaction over how they spend money, with the most successful focused on buying “experiences” rather than things,
• Measuring matters! Our clients who have taken our Financial Confidence & Clarity survey (FCC) say they pay attention to the factors that will bring them future success,
• Lower financial and investment stress due to solid planning and investment strategies creates more happiness,
• When too much money creates unhappiness, it is most often due to a combination of factors, including:

1) Clients with modest family values being thrust into the drama world of the ultra-rich,

2) Unclear boundaries for spending on children or grandchildren,

3) Family disagreements on work versus play balances after financial independence is achieved,

4) Deteriorating relationships (often leading to gray divorce) using money as a band-aid and/or

5) Wealthier lifestyles creating attractive targets for scammers including fake friends. 

Click here to get the 4^th Quarter Champions Workbook that helps you steer towards better future outcomes.

There is plenty of research¹ on money and happiness, but few studies have studied high income happiness. Wharton’s Matt Killingsworth digs deeper into this topic – key takeaways:

1. Having more money is associated with greater happiness, even well beyond incomes of $500,000 a year.
2. The happiness gap between the wealthy and middle-income earners is much bigger than the gap between middle- and low-income earners.
3. While richer people are happier, focusing only on money could undermine happiness if other drivers of happiness are sacrificed

When you are planning for your financial future, or considering how to ensure financial security throughout your life, a financial advisor can help you take steps to achieve your goals. Comprehensive financial planning is not just about managing your money – it’s a holistic process that addresses every aspect of your financial life, from investments and taxes to estate planning and insurance. Stearns Financial Group is a true fee-only, fiduciary, wealth management practice with experienced financial planners waiting to help you create a clear and strategic path to support both your present needs and future aspirations. We serve clients in North Carolina, with offices in the Triad and the Triangle. Talk to us today about defining your comprehensive financial strategy.

1: Can Money Buy Happiness for Millionaires?