Helping you achieve your personal vision based upon your individual needs, goals and risk tolerance.

The New Year is always a good time to reflect on what’s important in life and what can make us happy. Carver Financial Services, Inc., was founded with the unique vision of making people’s lives better.

The old adage “Money can’t buy happiness” has been around for a long time. We might be inclined to believe this saying when we think about all the ultra-wealthy people who were chronically unhappy and destroyed their lives, craving and seeking something more meaningful.

But many people argue that money can buy happiness. So, which statement is true? As it turns out, there is some truth in both arguments. For example, a Harvard University Business School professor says financial stability helps people escape the everyday hassles of life and brings us more control.

The importance of relationships for happiness

Through decades of research, Harvard psychiatrist Dr. Robert Waldinger has been attempting to discover the factor that seems to make the biggest difference in people’s lives. Waldinger is a co-author of The Good Life: Lessons from the World’s Longest Scientific Study of Happiness.

He says relationships are the key to happiness. The stronger our relationships, the more likely we are to live happy, satisfying and overall healthier lives. In fact, the Harvard Study of Adult Development reveals that the strength of our connections with others can predict the health of both our bodies and our brains as we go through life.

There are many other factors that contribute to happiness as well, and what is important will vary from person to person. Here are a few elements that people often cite as being important for happiness, with strong relationships listed first:

  1. Strong relationships: Having close, supportive relationships with friends and family can bring a sense of connection, belonging and purpose to our lives.
  2. Personal growth and fulfillment: Pursuing activities that challenge us and allow us to learn and grow can bring a sense of accomplishment and fulfillment.
  3. A sense of purpose: Having a sense of purpose — of meaning in life — can give us direction and motivation.
  4. Financial stability: While money can’t buy happiness, having a stable financial foundation can remove a significant source of stress and allow us to focus on other areas of our lives.

How does wealth contribute to happiness?

People often view wealth as a means to an end, a way to provide for basic needs and wants. However, the role of money in our lives goes beyond just meeting our material needs. The old adage “Money can’t buy happiness” doesn’t hold up to the scrutiny of many recent research studies.

In fact, a 2021 Proceedings of the National Academy of Sciences (PNAS) study found that happiness actually increases as people’s income rises. The more money we make, the happier we become — or rather, we have the means to buy the things or experiences that make us happy. The study concluded that there is a direct connection between higher incomes, feeling better day-to-day and being more satisfied with life overall.

But one licensed mental health therapist, Billy Roberts, says money doesn’t directly contribute to our happiness. Instead, money can make us happy if it enables us to live by the values we’ve defined as important. Roberts says that for some people, value lies in power, while others find value in security or self-care. And people with different needs will likely have different financial needs. He concludes that a person’s salary should support a value-driven lifestyle.

Let’s look at some of the values people consider important and how they relate to financial well-being:

  1. Financial stability and security: Having a stable financial foundation allows us to feel secure and confident in our ability to meet our needs and the needs of our loved ones. It can also give us the freedom to make choices and pursue opportunities that might not be available to us otherwise.
  2. A sense of independence: Financial independence allows us to make our own decisions and not have to rely on others for financial support. It can also give us the freedom to pursue our passions and interests without the constraints of financial insecurity.
  3. Enhanced overall well-being: Studies have shown that having a stable financial situation is linked to better mental and physical health. Financial stress can take a toll on our well-being, so having a healthy financial situation can help us feel more balanced and at ease. This is because higher income can provide access to a range of resources and opportunities that can promote good health, such as:
  • Access to health care: Higher income can afford individuals and families access to quality healthcare services, including preventive care, diagnostic tests, and treatments.
  • Nutritious food: Higher income can allow individuals and families to afford a varied and nutritious diet, which is important for maintaining good health.
  • Stress reduction: Higher income can also reduce financial stress, which can have a positive effect on physical and mental health.
    • It’s important to note that while income can be a key factor in determining health outcomes, it is not the only factor. Other determinants of health include genetics, lifestyle and            environmental factors.
  1. The ability to make a positive impact for others: Having financial resources can allow us to give back to our communities and make a positive difference in the world. Whether it’s through charitable donations, volunteering our time or supporting causes we care about, money can give us the means to make a positive impact, and that is a key to happiness for those who value doing so.

Keep your eyes on your Personal Vision

What brings you the most happiness? And how is that element of life related to money? What can you do to derive more happiness in 2023?

While money certainly isn’t everything, it can play a significant role in our lives and help us achieve our goals and aspirations. Ultimately, happiness is a complex and multifaceted emotion that depends on an individual’s values, goals and circumstances. It’s important to focus on what brings us joy and fulfillment and to make an effort to cultivate positive relationships and experiences in our lives.

At Carver Financial Services, we are focused on making lives better. We do this by financial and wealth planning and by providing experiences for our clients and community, ranging from travel to educational seminars. Most importantly, we use our proven Personal Vision Planning® process to enable you to achieve your perfect vision of retirement. We are here to listen to what each client’s vision is for the future and then to help develop and implement a personalized plan for achieving that vision.

Please reach out, without cost or obligation, if we can answer questions or be of service as you develop your vision. You can learn about upcoming events on our website and also in some of our videos on timely and timeless topics that may be of interest to you.

We are here for you and look forward to helping you find what makes you happy and fulfilled in 2023 and beyond.

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Randy Carver, CRPC®, CDFA®, is the president and founder of Carver Financial Services, Inc., and is also a registered principal with Raymond James Financial Services, Inc. Carver Financial Services, Inc. was established in 1990 with the vision of making people’s lives better — clients, team and community. With this mission, Carver Financial Services has grown to be one of the largest independent financial services offices in the country, managing $2.2 billion in assets for clients globally, as of December 2022. Randy and his team work with individuals who are in financial transition as a result of divorce, retirement or the sale of a business. You may reach Randy directly at randy.carver@raymondjames.com in the office at (440) 974-0808.