Although money in and of itself is not capable of directly producing authentic happiness, it undeniably possesses the capacity to significantly reduce life’s difficulties and remove many of the stressors that can weigh heavily on individuals. This nuanced perspective is particularly emphasized by Simran Kaur, a respected financial educator and experienced investor best known as the host of the podcast *Friends That Invest*. In a recent episode, Kaur dedicated time to exploring common misconceptions about wealth and finance, focusing especially on the frequently repeated idea that money is incapable of purchasing happiness.
Kaur clarified that the accumulation of financial resources, while not synonymous with emotional fulfillment or lasting joy, does serve a crucial practical role: it alleviates day-to-day inconveniences and absorbs the impact of unforeseen disruptions. She coined the term *inconvenience buffer* to describe this phenomenon, explaining that as a person’s net worth grows, the size of this buffer tends to expand proportionally, at least until a certain threshold is reached. Essentially, the presence of additional financial resources provides individuals with a protective cushion, softening the blow when unexpected challenges inevitably arise.
Reflecting on her own journey, Kaur described her time as a student—a stage in life when her financial safety net was nearly nonexistent. Without extra disposable income, she had little margin for error. Situations such as missing a flight, losing as little as fifty dollars, facing car repairs after an accident, or even managing an urgent dental emergency caused extreme financial strain. These relatively common mishaps had the power to derail her weeks or even months, consuming both her time and her emotional energy. In contrast, those with greater wealth are better insulated from such pressures because their financial position grants them the ability to resolve problems more quickly and with less personal disruption.
Kaur further illustrated her point by comparing her earlier and current experiences. Today, as someone who has become wealthier through disciplined investing, she recognizes that the same issues—such as missing a flight—no longer carry the same burden. While still aggravating or embarrassing, such incidents are reduced to minor inconveniences that can be promptly addressed. For many wealthy individuals, the solution may be as simple as phoning a personal assistant or agent to make immediate alternative arrangements, thereby preventing the incident from overshadowing their overall well-being. In this way, wealth does not extinguish problems altogether, but it substantially diminishes their ability to cause prolonged distress.
To ground her observations within a broader academic framework, Kaur referenced a well-regarded 2010 study conducted by Princeton professors Angus Deaton and Daniel Kahneman. Their research underscored the idea that while increases in income, such as pay raises or other boosts to earnings, may temporarily elevate happiness levels, the effect often plateaus over time as individuals adapt to their new circumstances. This reinforces the notion that although money cannot guarantee enduring happiness, it undeniably provides material security, stress reduction, and resilience in the face of adversity—benefits that should not be underestimated when evaluating the true value of financial stability.
In essence, Kaur’s insights highlight an important distinction: money is not the ultimate key to emotional fulfillment, but it functions as a powerful tool for creating an environment in which happiness is less threatened by constant disruption. Through the concept of the *inconvenience buffer*, she illuminates the practical, day-to-day significance of financial well-being—reminding us that while wealth may not bring joy directly, it can free individuals from the relentless anxiety of life’s unexpected setbacks, thereby preserving peace of mind and allowing greater room for personal and emotional growth.
Sourse: https://www.businessinsider.com/simran-kaur-financial-educator-wealth-happiness-inconvenience-buffer-2025-9
