Short interview excerpt in which Ray Dalio answers whether money buys happiness. Dalio states that once basic needs and security are met, additional money does not correlate with greater happiness; the strongest correlation is quality relationships and community. He says money primarily buys freedom and choice (to cover basics, healthcare, learning, and security) but can also impede deep relationships; he references his personal experience starting with little and later having substantial wealth.
You're, if I may say so, one of the richest people in the world. So you're a good person to ask, does money buy happiness?
No. It's been shown that between once you get over a basic level of income so that you can take care of the pain, health and whatever, there's no correlation between the level of happiness that one has and the level of money that one has. That thing that has the highest correlation is quality relationships with others, community. If you look at surveys of these things across all surveys and all societies, it's a sense of community and interpersonal relationships that is not in any way correlated with money. You can go down to native tribes and, you know, very poor places, or you can go in all different communities and so they have the opportunity to have that. I'm very lucky in that I started with nothing. So I had the full range, I can tell you, you know, by not having money, but. And then having quite a lot of money. And I, you know, I did that in the right order.
So you start from nothing in Long Island.
Yeah. And my dad was a jazz musician, but I. But I had all really that I needed because I had two parents who loved me and took good care of me. And I went to a public school that was a good public school. And basically, you know that you don't need much more than that in order to. That's the equal opportunity part. Anyway, what I'm saying is I experienced the range and there are many studies on the answer to your question. No, money does not bring happiness. Money gives you an ability to make choices.
Does it get in the way in any way of forming those deep, meaningful relationships?
It can. There are lots of ways that it makes negative. That's one of them. It could stand in the way of that. Yes. Okay. But I could almost list the ways that it could stand. It could be a problem.
Yeah. What does it buy? So if you can elaborate, you mentioned.
A bit of freedom at the most fundamental level. It doesn't take a whole lot, but it takes enough that you can take care of yourself and your family to be able to learn. Do the basics of have the relationships, have health care, the basics of those types of things. You know, you can cover the patients and then to have maybe enough security, but maybe not too much security.
That's right.
That you essentially are, okay, okay, that's really good. And you don't. That's what money will get you.
And everything else could go either way.
Well, there's more. There's more. Okay, then beyond that, what it. Then Starts to do, that's the most important thing. But beyond that, what it stands to do is to help to make your dreams happen in various ways. Okay, so for example, now I, you know, like in my case it's like those dreams might not be just my own dreams, their, their impact on others dreams, okay, so my own dreams might be, I don't know, I can pass along these. At my stage in life, I could pass along these principles to you and I can give those things or I can do whatever, I can go on an adventure, I can start a business, I can do those other things, be productive. I can self actualize in ways that might be not possible otherwise. That's my own belief. And then I can also help others. I mean this is to the extent when you get older and with time and whatever very, you start to feel connected. Spirituality, that's what I'm referring to. You can start to have an effect on others that's beneficial and so on gives you the ability. I could tell you that people who are very wealthy who have that feel that they don't have enough money, Bill Gates will feel almost broke because relative to the things he'd like to accomplish through the Gates foundation and things like that, you know, oh my God, he doesn't have enough money to accomplish the things he wishes for. But those things are not, you know, they're not the most fundamental things. So I think that people sometimes think money has value, money doesn't have value. Money is like you say, just a medium of exchange at a store, all the wealth. And so what you have to say is, what is it that you're going to buy? Now there are other people who get their gratification in ways that are different from me. But I think in many cases, let's say somebody who used money to have a status symbol, what would I say? Or that's probably unhealthy. But then I don't know, somebody who says, I love a great gorgeous painting and it's going to cost lots of money in my priorities. I can't, I can't get there. But, but that doesn't mean I don't. Who am I to judge others in terms of, let's say, their element of the freedom to do those things. So it's a little bit complicated. But by and large that, you know, that's my view on money and wealth.
