Money doesn't buy happiness, round 18374
Once you are earning £25,000 and upwards, he ventures, and yourbasicneeds for food, shelter and healthcare are covered, money becomes increasingly irrelevant to genuine happiness. By the time you reach Bill Gates's level the difference is probably negligible. If you want to raise your happiness level, he says, spend your money on experiences (a safari/Himalayan trekking/a concert) rather than a Rolex, a yacht or a Ferrari because they will bring you more joy in the long run.
There are psychological reasons for this. Material possessions are vulnerable to the "hedonic treadmill", says Montier, whereas experiences are not. In other words, we quickly get used to new things and they become part of our norm. "We might get a new fast car and at first be out washing it every weekend but six months later we have become accustomed to it, the kids have scuffed up the seats in the back and the boot is full of dog hairs," he says. "This is hedonic adaptation at work . . . material possessions are likely to be assimilated relatively fast."