Money makes you happier - but only if you really think about it - a new study has found.
Researchers from the London School of Economics and Political Science suggest that earnings only affect happiness when financial matters are on your mind.
Until recently, most economists and policy-makers subscribed to the view that individual well-being increases as we earn more money.
The new research, published in the British Journal of Social Psychology, was based on two tests which measured how a person's earnings and social ties influence their sense of well-being in different circumstances.
In each test participants were, unknowingly, primed to think about either financial issues or 'community' issues, such as their home-life, family or friendships.
The researchers found that when put in a situation where they were more likely to think about financial issues - for example, after solving word puzzles relating to money - there was a link between participants' income and how satisfied they said they were with life.
When participants were set-up to think about community or family issues their earnings had no effect on their well-being. Money also had no effect on well-being in control tests, when no particular issue was made relevant.
A person's social ties, on the other-hand, had a consistent effect on happiness. People who have more links with friends and family tend to be happier in all circumstances - whether or not they are thinking about money or community issues.
"Earning more money can make people feel better but only under the right circumstances. Strong friendships and family are much more consistent in providing people with feelings of well-being than higher earnings," said Dr Ilka Gleibs, lecturer at the London School of Economics and Political Science, and co-author of the research.
