The EEA boasts a combined GDP of over €15tn, as reported by CountryEconomy.com, yet not everyone is higher. According to EU stats – updated this year – the average European assesses their happiness as 7/10. However, this fluctuates massively, with high income individuals in Denmark far happier than those in, say, Croatia.
The conclusion to be found here is that money does not necessarily make you happy. A cursory glance at the internet brings up plenty of ways to improve your life, from decluttering your personal space to improving mental health. While these form one part of the happiness recipe, what part does money really play?
Money and time
Until the EU Working Time directive made its presence known – in and out of the EU – employers were allowed, and in sometimes obliged, to provide long working hours to their staff. As time has wore on, the relationship between time and money making has changed. Working from home is commonplace, and the internet has created income opportunities to make money outside of the classic working day. Liberalising workers to stick to their own schedule has a marked effect on happiness. According to Condé Nast Traveler, European work life balance in the Netherlands, Denmark and Sweden rank high. Not coincidentally, these are three of the countries that have reported the highest levels of overall happiness in the EU figures quoted earlier.
How wealth acts as a comforter
Whilst time is clearly a big factor in reported happiness, money can’t be discounted – all of the nations with better work-life balances boast high GDP per capita, after all. The second major aspect when considering the impact of money on happiness is poverty. While having money isn’t the same as being happy, having nothing at all is worse. Statistics collated by the UK’s Office of National Statistics found that people in persistent poverty are 15% more anxious than the general population, with a rate of 36%.
What, then, is the tipping point? A study of 1.7m people, conducted by Gallup, found that people are generally satiated at income levels of €80k (women) and €72k (men). These aren’t huge sums of money, and are reasonable wages for middle-experience professionals and graduates. The key is that these sums are able to live without worrying about money. Emergencies can be dealt with easily, and big purchases are feasible, rather than a pipe dream.The countries that meet these levels? The Netherlands, Denmark and Sweden are among them. It goes to show that being incredibly wealthy doesn’t buy you happiness.
The key ingredients for happiness with your monetary situation are multifold. Being rich isn’t necessarily happiness, and seems to depend on the country you’re in. Time is a key component, with your leisure and rest hours as important as your working ones. Finally, there is a point of satisfaction, and the countries that meet the other points also tick that box. In short, today’s workers want time to disengage and enough cash to live life without worries.
