Get Rich, Get Happy?
A new survey has revealed that, despite improvements in our wealth and health, Britons are no happier than in 1973. Laura Starkey investigates.
This probably won't be the first time you've been told that money can't buy you happiness. It's a cliché we're all familiar with, and probably a saying most of us have pooh-poohed at some stage.
"Money might not make you happy, but being broke definitely makes you sad!" is something I've been known to bawl when my bank balance is looking a bit dodgy.
Yet a new report from the Office for National Statistics has confirmed that, far from making us happier, having more money makes no difference at all to how satisfied we are with life.
The study, Social Trends 38, looks at how life in Britain has changed over the past few decades. Overall, it showed huge improvements in people's wealth and health, but a slight decline in happiness.
So What Does It Say?
According to the report, household disposable income per head in the UK (adjusted for inflation), increased by nearly 150% between 1971 and 2006. Meanwhile, our total net wealth as a nation has risen from £3,360bn in 1991 to a whopping £6,900bn in 2006.
While life expectancy in 1971 stood at 69 for men and 75 for women, by 2006 it had increased to a much more palatable 77 for men and 82 for women. Mortality rates for circulatory diseases such as stroke and heart disease have also fallen markedly in the past few decades.
Overall, despite slow progress on preventing deaths from cancer and rising obesity levels, people now are healthier than they were 35 years ago.
Despite all this, data from Eurobarometer indicates that we aren't any better off emotionally.
Between 1973 and 2006, the percentage of people who said that, on the whole, they were satisfied with life hovered at around 86%. During 2006, the figure stood at a marginally lower 85%.
The Social Trends figures correlate with the findings of studies from around the world which suggest that wealth is not the key to happiness.
Why Wealth Doesn't Work
Back in 2006, the BBC produced a six-part series on happiness, The Happiness Formula. It looked at how happiness could be measured, why it was important and what factors affect people's happiness.
During the series, experts in economics, social science and psychology suggested that while richer countries are generally happier than poorer ones, once average incomes hit around £10,000 the effect of wealth on increasing happiness stops.
Put simply, once everyone has life's necessities, giving people extra cash won't make them more content.
As for trying to spend yourself happier? Forget it. According to scientists, buying something like a new dress or a posh car will provide you with a happiness `high' -- but it will be short-lived.
Our tendency to compare ourselves with other people inevitably means we end up feeling inferior, and the shine soon rubs off those pretty new possessions.
As the statistics from Social Trends show, while the amount of luxury goods and holidays purchased by households has increased dramatically in the past three decades, we're no more satisfied with life.
So much for retail therapy!
What Will Make Me Happier?
According to Professor Andrew Oswald, an economist at the University of Warwick, friendship has a far stronger impact on happiness than wealth.
He has suggested that an individual with no friends would need around £50,000 to make them as happy as their more sociable peers.
Close personal relationships with others, believing that your life has meaning and working towards achievable goals are considered to be the three key ingredients for a happy life, according to researchers.
One thing sure to make you miserable, however, is getting into bad debt - which can be all too easy if you try to buy your happiness. In our super consumer society, Affluenza is rife. Many people spend more than they earn on things they don't need, but still feel dissatisfied.
I know from personal experience that the rush of buying designer shoes will soon give way to lusting after the latest `it' bag... And that way madness lies!
While cash can't guarantee contentment, budgeting carefully, spending wisely and living within your means are important if you want to feel safe.
Money can't make you happy, but handling it well can give you the security you need to concentrate on other things that will.
More: Does Wealth Make Us Worse? | Don't Worry, Be Happy!