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When people say that money does not buy happiness, they generally mean “extra money”. I think we can all agree, and research supports this view, that people whose basic needs for shelter, clothing and food are not met, will find it very difficult to feel happy. Of course, there are exceptions, including people whose religious beliefs dictate that they should be happy with as few material possessions as possible, but for most of us, we can only be happy once our basic needs are met.
Happiness research shows that when people determine their level of happiness, how much they have compared with others is more important than how much they have in absolute terms. Again, this is assuming basic needs have been met. Although rich people in a given country generally feel happier than poor people in the same country, rich people in a rich country do not feel happier than rich people in a poor country, even though in absolute terms, they have more. So, we tend to feel happy once our basic needs are met and we have more than the people surrounding us.