Happiness: Staying positive in negative territory

Although past studies have found those who live in countries with higher per capita incomes report many measures of greater well-being, it's psychological wealth that helps people get through tough times, say researchers Ed Diener and Robert Biswas-Diener, who will present new findings at the four-day annual meeting of the American Psychological Association.

Though money helps people lead more comfortable lives, it doesn't necessarily contribute to the moments in life that bring happiness — which tend to come from social interactions and activities, not from accumulating material goods.

Psychologists also have found that being highly materialistic affects happiness, with those who are most concerned about money and possessions actually being less happy.

But what about what money can buy? Previous research has found that using money to pay for something novel, social or experiential brings more happiness than buying things. Because experiences can provide happy memories, they don't wear away as fast as the rush of buying a new possession.