We know that money can buy some forms of happiness, but can happiness buy money? According to research on positive psychology and money, people who maintain higher emotional well-being — optimism, gratitude, and enthusiasm — are more likely to manage their finances effectively and grow long-term wealth.
Can happiness really make you wealthier?
While we’ve all heard that money can buy happiness, new psychological research shows the reverse may be just as true: happiness can actually help create wealth.
For solopreneurs, that means your mindset might be one of your most valuable business assets. Studies reveal that positive emotions — like hope, determination, and enthusiasm — lead to smarter money management, better financial discipline, and a greater ability to spot opportunities.
As Sarah Asebedo of Texas Tech University explains, “Positive emotions support the behaviors that help people earn money, stay out of debt, and grow wealth.” In other words, your emotional well-being doesn’t just feel good — it can strengthen your bottom line.
💡 Quick takeaway:
- Happiness drives wealth-building habits like saving, planning, and smart risk-taking.
- Positive emotions improve focus and resilience in challenging times.
- Entrepreneurs who prioritize well-being create stronger, more sustainable financial success.
What the Research Shows About Positive Emotions and Money
A new study published in Personality and Individual Differences shows that positive emotions can promote better money management practices that lead to increased net wealth. For solopreneurs, this means that the success of your business may be more tied to your mental health and happiness than you think.
“Existing research tends to show that money leads to happiness,” says the lead author of the paper, Sarah Asebedo of Texas Tech University. “Despite this favored interpretation, there is robust evidence that positive emotions actually support and create the behaviors necessary for people to succeed in their financial life (e.g., earn money, exercise control, stay out of debt, save, etc.). Our research builds on this work by generating evidence that positive emotions also have a causal relationship with wealth creation.”
To come to this conclusion, Asebedo and her team examined over 10 years of data from the Health and Retirement Study conducted by the University of Michigan. The researchers tracked people’s emotional state (e.g., determined, enthusiastic, active, attentive, inspired, hopeful, etc.), and their net wealth to see whether positive emotions promoted a higher level of wealth creation.
They found the answer to be a resounding yes.
“This finding expands our view of the relationship between happiness and money to include the idea that cultivating a happy, full, and meaningful life results in a greater capacity to earn and save money, manage spending, and grow wealth,” explains Asebedo.
Which Personality Traits Support Financial Success?
While the researchers did not test whether certain personality traits were more important than others in amassing wealth, past research has found that conscientiousness and extroversion are generally associated with higher levels of financial success.
It is also important to keep in mind that personality traits are more malleable than many people realize. For example, one study found that keeping a structured daily routine increased people’s levels of conscientiousness – a trait that has been linked to wealth creation and financial success.
💡 Building wealth starts with mindset. Here’s how to overcome self-criticism and strengthen your confidence
How Freelancers Can Turn Happiness Into Financial Growth
You can apply the findings of these studies to your own entrepreneurial journey to develop and refine positive financial behaviors.
Awareness about your current thought patterns, emotional states, and behaviors along with appropriate interventions can help you create meaningful financial behavior change.
The research also highlights the importance of maintaining a positive outlook during challenging economic times, especially as an entrepreneur. Psychological interventions, such as psychotherapy, can help protect your emotional state during economic downturns.
7 Science-Backed Habits That Boost Both Mood and Money
Lifestyle changes can also help boost your mood and your business’s bottom line. One study published in the Journal of Positive Psychology found that implementing the following seven lifestyle tweaks can result in a significant increase in psychological flourishing:
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Speaking positively – Offering a genuine compliment or memorizing an inspirational text or saying
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Moving dynamically – Doing 30 minutes of moderate exercise, achieving 10,000 steps daily, or engaging in 20 minutes of guided resistance exercises
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Immersing yourself in an uplifting natural environment – Spending 30 minutes in an uplifting natural environment or experiencing a sunrise
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Eating nutritiously – Eating multiple servings of plant-based food daily or preparing a high-fiber, plant-based meal with friends
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Getting quality sleep – Spending eight hours in bed without a device
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De-stressing – Spending 15 minutes in a quiet place, relaxing and being mindful of your surroundings, or going off-line for 24 hours to recharge
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Serving others – Performing a random act of kindness, or using a signature strength to perform an act of service
💡 Happiness also fuels productivity. Try these top productivity techniques for freelancers.
Why Happy Entrepreneurs Make Better Wealth Creators
Happiness isn’t just the result of success — it’s often the reason for it. Entrepreneurs who cultivate optimism, gratitude, and balance are more likely to make thoughtful financial choices, attract opportunities, and stay resilient through uncertainty.
For Xolopreneurs, the message is clear: wealth follows well-being. By caring for your mental health and nurturing a positive outlook, you’re not only improving your life — you’re strengthening your business, too.
🌱 Build a business that supports both your happiness and your income. See how Xolo helps solopreneurs focus on what matters
FAQ: The Link Between Happiness and Wealth
Q1: Can happiness really lead to financial success?
Yes. Long-term studies show that happier people are more likely to develop consistent saving, spending, and investing habits — all of which support wealth creation.
Q2: How does mindset affect entrepreneurial success?
A positive mindset improves decision-making and risk tolerance, helping entrepreneurs identify opportunities and navigate uncertainty with confidence.
Q3: What personality traits are linked to financial success?
Traits like conscientiousness, openness, and extroversion are often tied to better money outcomes, but research shows these can be strengthened through structure and daily routines.
Q4: Which habits boost both happiness and income?
Exercise, sleep, time in nature, acts of kindness, and social connection all improve emotional health — which directly enhances productivity and business results.
Q5: Is wealth or happiness more important for success?
They work hand in hand. Happiness improves focus, motivation, and creativity — and that’s what makes wealth sustainable in the long run.
About Mark
Mark Travers, Ph.D., is an American Psychologist with degrees from Cornell University and the University of Colorado Boulder. Xolo helps him run his online therapy practice, Awake Therapy, from whatever part of the world he is currently living in.