Many people assume that those who live in larger homes, drive luxury cars, and own an abundance of possessions must be happy. But for some, the reality may be that they are using purchases to fill an emotional void.
Money undeniably plays a vital role in our lives. It enables us to meet essential needs — food, shelter and long-term security. But if our basic needs are satisfied, does accumulating more truly enhance our happiness or well-being?
Defining success by the size or cost of your purchases rarely leads to lasting happiness. A new acquisition may lead to temporary excitement, but it often fades, sometimes leaving behind regret.
According to Proceedings of the National Academy of Sciences, income is positively correlated with happiness — up to about $90,000 annually. Beyond that threshold, additional earnings have little effect.
Social comparison
Should it matter what our friends, family, or neighbors have? Is it possible to disconnect from social expectations and stop comparing ourselves to others, seeking fulfillment in ways beyond material spending? True happiness lies in discovering joy within our own lives, rather than concerning ourselves with others’ opinions or spending habits.
Happiness in the U.S.
Happiness is an emotional state characterized by feelings of joy, satisfaction, contentment and fulfillment. It isn’t a state of constant euphoria, but rather a general tendency to experience more positive emotions than negative ones.
Our place of residence can significantly influence our level of happiness.
According to WalletHub, happiness levels vary across U.S. cities, and living in certain locations may improve overall quality of life. Drawing on research from positive psychology, WalletHub evaluated more than 180 of the largest U.S. cities to identify where the happiest Americans reside.
Freemont, a city with some 230,000 residents near San Francisco, took the top spot. The ranking was based on 29 key indicators of happiness, including depression rates and income growth.
Freemont’s multicultural heritage, top-rated public schools, scenic parks and hiking trails, inclusive culture and keen sense of community all contributed to its top ranking.
Perspectives on happiness
The World Happiness Report ranks global happiness across more than 140 countries.
In its 2025 edition, the report named Finland the world’s happiest country for the eighth consecutive year. Finland’s success is attributed to low corruption, robust education, high-quality healthcare and a cultural emphasis on balance rather than relentless ambition.
Despite being the world’s tenth wealthiest nation, the U.S. ranks only No. 24 on the World Happiness Report—its lowest position since the report was created in 2012. The report’s happiness metrics include social support, life expectancy, freedom from corruption, generosity, and more.
Well-being: This refers to a state of health, happiness and prosperity. Although closely related, happiness and well-being are distinct concepts. Well-being encompasses what is ultimately beneficial for an individual and aligned with their self-interest. It serves as a measure of how favorably a person’s life is unfolding. The concept reflects the balance between positive and negative experiences to assess overall quality of life.
Key components of well-being include mental health, life satisfaction, physical wellness, a sense of purpose, and the ability to manage stress effectively.
Relationships: Human connections significantly influence our happiness and well-being by offering emotional support, a sense of belonging, and shared experiences. These elements help us manage stress and contribute positively to our emotional health. Meaningful relationships with family and friends nurture core values and foster personal growth, making them a fundamental aspect of a fulfilling life.
Physical health: Improving our physical health can not only enhance how we feel, but also strengthen our emotional well-being. Recognizing the impact of a nutritious diet and regular exercise is essential — and adopting effective strategies can lead to lasting improvements in overall health.
De-clutter: Living with fewer possessions can free up time and space to focus on what truly matters, leading to more joy and less stress. The goal is to de-clutter both your physical surroundings and mental space to elevate overall happiness and well-being. Excess clutter—whether it’s a disorganized room, a desk buried in paperwork, or a stack of unpaid bills — can distract from feelings of happiness and fulfillment.
Prior to pulling the trigger on future purchases, consider asking yourself: Will this purchase genuinely enhance my life, or am I trying to fill an emotional void? A month from now, will this purchase feel like added clutter or a meaningful contribution to my well-being?
Philanthropy: Giving can bring joy and help reduce stress and anxiety. According to an article by Harvard Health, giving can lower cortisol levels, the hormone linked to stress. Acts of kindness, whether through donations or volunteer work, positively contribute to personal well-being. Generosity fosters gratitude, a trait consistently associated with improved mental health. Volunteering also offers meaningful social interaction, helping to reduce feelings of isolation and stress.
The path forward: The journey toward happiness and improved well-being often begins with small, intentional steps. Regardless of financial status, identifying and embracing what you truly value is essential. Perhaps it’s forming a book club, volunteering for a meaningful cause, spending time with loved ones, planting a garden, taking a cooking class, or exploring a new hiking trail—whatever sparks your curiosity and joy.
With this renewed focus, you may find that a larger home, a luxury car, or other excess possessions do not improve your quality of life — and may even subtract from it. By investing in personal growth, purpose and passion, you may discover that the value of happiness and well-being is priceless.
Teri Parker is a certified financial planner and vice president for the Riverside office of CAPTRUST Financial Advisors. She has practiced financial planning and investment management since 2000. Contact her via email at Teri.parker@captrust.com.