FACTORS THAT INFLUENCE A PERSON’S LIFE TOWARDS

MONEY

Ika Yulianti, Putri Nurul Insani, Astri Widiawati, Setyo Riyanto

Faculty of Economics & Business, Universitas Mercu Buana

ikhayulianthi@gmail.com.,pnurul200@gmail.com.,astriwidiawati11@gmail.com.,
setyo.riyanto@mercubuana.ac.id

ABSTRACT

this study analyzes the factors that influence a person's happiness with money. the purpose
of this is to find out what factors influence a person's happiness with the money they have.
and after we conclude that money is a source of happiness for those who are able to buy
what they want and need and the other way around

keywords: hapiness, consumer behavior, money

I. INTRODUCTION

Someone's satisfaction does not directly depend on the amount of money a person has and
this factor does not always affect satisfaction but there is clearly someone with a personality
who is always dependent on money as a sign of his well-being and for them lack of money
is a decrease in welfare which leads to dissatisfaction in life, maybe everyone have different
financial problems in the same living conditions, the only difference is how to change their
economy for the better. There are several factors that affect one's life satisfaction, namely,
income accompanied by problems (For example: troublesome health problems), the second
factor is money which is considered as a source of happiness so they prefer to be used as a
spree because in reality all are influenced by desires different ones.

An Analysis Advisor Infestation course this is determined by the translation we get. The
happiness expert Gretchen Rubin is a health measuring money which can greatly affect us in
many ways, especially focusing on negativity. The reduced satisfaction brought about by
materialists is discussed by the fact that they are satisfied with what continues to improve
with their financial status. This is because people of noble goals are further questioned, and
these goals are very high and not competitive (eg. Improve their financial capabilities) so
that they are not able to achieve it. Because these goals are beyond their reach, they are not
satisfied with their standard of living, and this irritation affects their overall sense of
happiness. Financial conditions are closely related to a person's level of satisfaction.

Most of us have strong feelings about money, feelings that can make it difficult to arrive at
rationalists about money and maintain a harmonious relationship when dealing with money.
Some people feel happy to have a lot of money, some feel ashamed because they do not
have a lot of money. However, there are some things to worry about money that will affect
their quality of life by always wondering whether they have a lot of money or not. In
addition, some feel confused and anxious about money but do not know where he got it. It is
natural for everyone to have various feelings about money.

II. LITERATURE REVIEW

Based on Selligman (2002) individuals who place money above other goals will tend to be
less satisfied with their income and overall life.

Mis Veenhoven (1996) considers that happiness is a function of evidence of individual

satisfaction. Because money is universal to meet material needs, mental well-being, we must
depend on absolute income. As for who assumes that the happier we are, the greater our
satisfaction with specific aspects of our lives. This approach envisions that the same job, the
same income, and the same family situation will be valued differently by happy and
unhappy people. What's more, proponents of this theory argue that satisfaction is the
permanent nature of an individual. Therefore, in this approach, the way we view our lives,
whether we are happy people or not, also influences our perception of the financial situation
(Czapiński, 2004, 2008). Some people say happiness is not determined by the amount of
money they have. Strengthened by Elizabeth Dunn, associate professor of psychology at the
University of British Columbia, she has another opinion. "The first thing to understand is
that it's better to have more money than less. People who say money is not related to
happiness is wrong. Indeed that is what happened," Dunn said when talking to
CNNIndonesia.com on the sidelines of his presentation session on Wealth Wisdom the
Essence of Wealth at Ritz-Carlton Pacific Place Jakarta, Wednesday (11/5). "But the
interesting thing is the relationship between money and happiness that can fade. Suppose
people are looking for money by working hard just to raise their children. So what happens
is happiness from money comes only when the child grows up," he said

The study titled 'The Way of Wealth' surveyed 300 respondents who had a wealth of
between US $ 1 million to US $ 20 million, aimed at determining how wealth affects quality
of life. When asked what wealth means, 54% of respondents say the answer is happiness. As
many as 65% of respondents agreed that money provides one thing more important than
happiness, namely peace of mind. Although money cannot create happiness, satisfaction and
success, it is certainly more able to facilitate a more fulfilling lifestyle. "In addition to the
emotional and psychological benefits that are not seen, people see wealth as a provider of
possibilities (enablers), which allows people to have freedom, a happy family life and to get
social and recreational activities that they can enjoy," according to the survey. When asked
what wealth can do for them, 70% of survey respondents answered that wealth enables them
to be independent and financially free. Half of the respondents said wealth made it possible
to create a happy family life and 44% said wealth could make them travel anywhere. As for
other studies conducted by Elizabeth Dunn, she and her colleague, a Harvard University
professor, Michael Norton, have conducted a series of studies in the United States on the
relationship of money and happiness.

Their summary was formed by a book called Happy Money: the New Science of Smarter
Spending.

Dunn came from Canada to Indonesia to reveal the story of his book. The book, published in
2013, made many people interested in Dunn and Norton's opinion about how money can
make someone happier. Elizabeth stated that money has indeed become an important thing
in life at this time. But that does not mean that money becomes everything. According to
Dunn, non-material wealth owned by a person can have a greater impact on his happiness.
He explained, the average person who works every year in the United States can raise as
much as US $ 75 thousand or more than Rp997 million. But that big money can't bring
happiness every day.

"Do you have to have a lot of money to be happy? Not really. From the research we've done,
money can bring more happiness. The way they spend that money is as important as the
amount of money they have to get," Dunn said.

According to Dunn, as written in his book, there are at least five principles in the use of
money to make someone happier. It is these principles that make money more meaningful
than just working wages for survival. Some of these principles are using money to gain
experience, then using money wisely, using money to live more efficiently, arranging
strategies to enjoy purchasing goods, and investing in something that makes life more
meaningful.

The term is not all can be bought with money, it does not seem to apply for now. The reason
is, a survey reports that in countries with high incomes, the people have a high level of
happiness as well. As reported by the Global Pew Research Center survey quoted by Gulf
News, Saturday, November 1, 2014, rich countries like the United States, Germany, and the
United Kingdom topped the list of countries with the highest levels of happiness. This shows
that national income is closely related to personal satisfaction.

The survey institute conducted research on residents in 43 countries representing the best
and worst standard of living. This survey was also carried out in 2002 and 2005. The aim is
to make it look trend from time to time.

However, the data also acknowledges the existence of other factors in getting happiness
besides money. For example, Malaysia gets happiness at the level of 56 percent. Meanwhile,
Germany which has gross national income far greater than Malaysia gets a happiness level
of 60 percent, only related to 4 percent from Malaysia.

The survey also shows that money is not the only factor in achieving happiness. As women
tend to be happier than men, people who are not married and middle-aged are happier than
people who are married and are still young.
Asians have also experienced an increase in satisfaction levels in the past five years. This is
because they have great expectations about the future. The majority of Bangladeshis, Thais,
Indonesians, Chinese, Filipinos, and Indians expect life to improve compared to today in the
next 5 years.

Meanwhile, Jordanians, Egyptians, and Tunisians are the most dissatisfied and pessimistic
societies for the future among developing countries. According to researchers, this is due to
political and social upheaval in the region.

The survey also showed that 8 out of 14 developing countries showed an increase in the
ladder of life, as happened in Indonesia, China, Pakistan, Malaysia and Russia. This survey
asked respondents about ownership of items such as televisions, refrigerators, washing
machines, microwave ovens, computers, cars, bicycles, motorbikes, and radios.

Americans moved in droves to the outskirts of the city to a newly paved subdivision in what
was once rural land. The remote suburbs had some of the fastest-growing populations in the
country in the early 2000s, driven by cheap and easily accessible housing. And this place
helps redefine the way we think about metropolitan areas like Washington, pushing their
ends further away from traditional city centers. After housing crashes, the same places get
the biggest blow. Population growth on the periphery has stalled. They produced a new
American phenomenon.

A 2015 study by the Brookings Instituion (www.brooking.edu) found that for the first time
since 2010 the body's exurban district was more than the urban core of the district
nationally. These locations such as Waller Country on the outskirts of Huston, Barrow
Country on the outskirts of Atlanta, and Johnston Country on the outskirts of Raleigh, are
lying on the outskirts of big cities. The most recent suburbs account for around 43% of all
U.S. residences. in 2010 between July 2013 and July 2014, the city's core communications
lost 363,000 people overall, according to Brookings, due to increased migration to the
suburbs and exurban districts. The biggest growth is in the exurban area. The reason is that
80% of employment growth from 2007 to 2013 is in newer suburbs and suburbs.

In the decade that ended in 2010, the percentage of suburban population living in the
traditional suburbs that were mostly white dropped from 51% to 39%. According to a study
by the University of Minnesota School of Law, 44% of the population in the 50 largest US
metropolitan areas now live in racial and ethically diverse suburbs, defined as between 20%
and 60% non-white.

income in the economy is considered as the main indicator of the material situation. And it
can also be assumed that satisfaction from one's financial situation is directly dependent on
this indicator. One indicator is that a person gets an objective dimension often regardless of
how satisfied he is from what he gets, namely financial satisfaction, income can be
measured in various ways, such as: individual personal income, cumulative household
income, or average household income per capita. Household cumulative income has
weaknesses depending on how many people are in the family and the ratio of recipients to
non-recipients. The problem is that people have different definitions of their basic needs in
life. Consumption is basically built on two things, namely needs (intention) and usefulness /
satisfaction (benefits). Because raisionally, a person will never consume an item if he does
not need it while getting the benefits from it. Satisfaction is known as maslahah with the
understanding of fulfilling both physical and spiritual needs. For some people with a certain
amount of money may be enough to meet basic needs but it becomes absolutely not enough
for others. For some people, having a place to live and food at the table is a form of
happiness.

For others, and most people, it's happy to be able to buy good things like clothes, cars or
even the latest gadgets, exclusife vacations abroad, and personal education for their children.
This clearly shows that the same goods or money can have different meanings for different
people, so one indicator cannot define overall financial benefits for everyone due to different
needs.

when they want to define a person's financial situation, people switch by comparing their
wealth with others who are similar to them, and they feel greater satisfaction when it turns
out that the results of the comparison show that their income is higher than others. This
comparison can appear at different levels, different groups depending on which reference
group they will choose. Is paying big a guarantee of having job satisfaction? Is it possible
that those two factors can we have to be truly happy? At what stage of life are you now? If
you do not have dependents, for example family and children, it is fine if you often overtime
to get a big salary. Another thing that needs to be evaluated is your main goal to choose this
job. Is it because of his salary and bonus offer, or because of his responsibilities? If it's
because of both, won't it change after a while? Whether or not happiness is achieved
depends very much on the behavior of those who seek it. If you can go to work and laugh,
feel happy and find excitement at your job, then happiness in your career has been grasped.
If you feel emotionally suffer every day while working, then no nominal money can change
that feeling. the next step in the analysis in financial optimism vs. pessimism is to cross two
variables namely income and perception of the financial situation, which leads to the
identification of four subgroups of people consisting of:
(a) low income people, feeling bad financial situation (called low income);
(b) low income people but assess their financial situation to be very good (financial
optimistic); (c) high-income people and rate their financial situation as very good (high-
income realists); and (d) high-income people but consider it bad People who judge their
financial situation on average are excluded from the analysis. The next step in the analysis is
to compare in terms of their individual characteristics which are characterized by two groups
of differences between income levels and their perceptions, namely between financial
optimism and financial pessimism. financial optimists have a generally more positive
approach to life and obtain much higher indicators of life satisfaction and also that the rich
spend their time making and checking budgets twice as much as ordinary people. This
shows that making financial budgets for personal or family is one of the important processes
in managing our finances. Financial pessimists are paying more attention to money as a tool
to meet their needs rather than optimism. In addition, money for pessimism is a source of
social comparison and self-esteem and also the evaluation of others, as well as a source of
inferiority and frustration.

Having lots of money can indeed make us fulfill all desires, ranging from buying luxury
goods to going abroad. Similarly, a happiness expert, Gretchen Rubin, said that money is a
kind of measure of health, which if very large in number, can actually affect our lives and
lead to negative things. It needs to be recognized that money can determine happiness
because it can give us something we want.
Most of us are certainly familiar with the saying "Happiness cannot be measured by money"
this term does not hurt. Because someone's happiness can be measured by how much money
but the first thing is whether the amount of money is enough just to make ends meet. It is
also important for us to realize that the more money we make, the greater the responsibility
for our lives. If the responsibility is too heavy it will fade happiness itself. I don't know
because of busy company affairs or lack of social interaction such as hanging out or relaxing
with family.

Whereas for those who use money optimally, although not too much but they are still living
as human beings who feel a moment of togetherness, life injustice and jokes and money that
produces full benefits, then human happiness is like that.

Needs money, but not all of it. What we as humans with a life time that can temporarily kill
the blood of our fellow human beings (memorize the death even though all humans
including us also die), deceive, corrupt, hostile or even self-destruct like busyness from
morning to morning. No, and don't forget that there are our property rights for children who
die or for those who are at an early age (orphans), those who have tried but are still poor and
also all who need it.

III. CONCLUSION & RECOMMENDATIONS

Current research is carried out with the purpose of recognizing the impact that money makes
on someone who reveals that money has a different effect on someone. In conclusion,
according to in this analysis, someone is often complacent if he has a lot of money by
spending the money he gets later when they do not have money they will realize that money
is not everything. Many make YOLO (You Only Live Once) or life only once as an excuse
to spend extravagantly. People like this usually don't think much about their future because
they enjoy it too much today. It's actually good, but you should know that life is still long.
Don't only think about today if you want a happy old age. Because happiness should start at
an early age.

Try to be frugal and cautious when spending money so that your life is not destitute in the
future. Appreciate What Your Hard Work Really is, no one can forbid you from spending
money. Especially if the money spent is the result of his own efforts. You have absolute
rights to all the money you have. Want to be spent now, tomorrow, or two more weeks, all
the decisions are yours. Even so, you should not be rash in financial matters. Because the
way you manage your finances today will affect your survival in the future. If you are
accustomed to living wasteful, it will be difficult to control yourself to not live wasteful.
Before it's too late, try to fix it from now on. Appreciate every sheet of money you have by
using it on things that are important. Remember that you have spent a lot of sweat to get the
money. Avoid spending money for spree purposes or just looking for fun. Because
happiness is felt only for a moment.
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