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Why do people want more money?

Philosophers, economists, and researchers have been pondering that question for hundreds, if not thousands, of years. One reason for the question — more money does not contribute that much to a person’s happiness.

If that is true, then why do people want more money?

There could be several explanations, according to researchers.

First, it could be that people don’t realize more money will not raise their well-being, although this is suspect since in studies most people say that money is not that important in their hierarchy of values.

It could also be that people enjoy the goal of attaining higher incomes more than the money itself and what it represents.

One other explanation, according to researchers, is that people may seek money because it produces short-terms benefits, even though a person’s long-term happiness does not move.

And finally, people may feel a strong need to acquire money, goods and services simply because of societal pressure. Individuals may feel they need to buy things to gain status and not be perceived as failures.

Whatever the reason, the research remains pretty strong — once a minimum level of existence or income occurs — higher income has only a modest impact on a person’s long-term happiness.

Source: Will money increase subjective well-being? Diener, E., & Biswas-Diener, R. Social Indicators Research, 57, 119-169 (2002).

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