Money does lead to happiness... sometimes

SMU Behavioural Sciences Institute research fellow Louis Tay, Edward Diener of the University of Illinois and Shigehiro Oishi of the University of Virginia detailed their findings about how individual wealth, material possessions and optimism were linked to greater well-being in rich and poor countries. The new study found increases in income do matter, but really only if that money brings the ability to buy more material things and if the individuals have optimism about their future and aren't continuing to crave more; in other words, if individuals are satisfied with their finances.