Money = Happiness? One study says no

I've been rich and I've been poor.  Rich is better. - Sophie Tucker

Does more money buy more personal happiness?

According to surveys conducted by University of Southern California economist Richard A. Easterlin, no.

Instead, his research indicates -- as explained in layman's terms by Fool.com columnist Dayana Yochim -- that being married rather than single or divorced, and having friends and good health are more important to happiness than money (though money does indeed have some effect, both authors acknowledge:  She notes that "[T]he most prosperous among us -- the Forbes' 100 wealthiest Americans surveyed by University of Illinois psychologist Ed Diener -- are ... slightly happier than average.").

Easterlin concludes that

people allocate a disproportionate amount of time to the pursuit of pecuniary rather than nonpecuniary objectives, as well as to "comfort" and positional goods, and shortchange goals that will have a more lasting effect on well-being....

[M]ost individuals spend a disproportionate amount of their lives working to make money, and sacrifice family life and health, domains in which aspirations remain fairly constant as actual circumstances change, and where the attainment of one's goals has a more lasting impact on happiness.  Hence, a reallocation of time in favor of family life and health would, on average, increase individual happiness.

In one of Yochim's other columns, however, she quotes research summarizing what retirees who are looking back on their lives wish they had done more of, were they able to have a "do over" on their retirement planning:

• Nearly 60% said they would start saving earlier.
• One-third would reduce expenses to save more for retirement.
• A third would be more disciplined about retirement income.
• 25% would work longer.

Not exactly compatible with not focusing on earning money during one's lifetime.  And perhaps indicative of the fact that many underestimated the importance of money until retirement (but prior to retirement mau have answered university professors' subjective happiness surveys by indicating that they had enough money and were overall quite happy with their financial situations).

Overall, the conclusion here seems to agree with Sophie Tucker's quote:  Rich is indeed better and does indeed make one somewhat happier, but given limited time to devote to relationships/family/health versus finances, the typical person will experience higher marginal utility in pursuing the former over the latter.