We often associate wealth with fancy dinners and dream vacations, but new research highlights a less glamorous, yet equally important, benefit of money: Money safeguards us from the constant exposure to daily stressors that harm our well-being.

Harvard Business School’s Assistant Professor Jon Jachimowicz argues that focusing solely on how money can buy happiness overlooks its power to reduce unhappiness. Money provides a sense of control, allowing us to navigate life’s inevitable negative encounters with greater stress relief. Whether it’s affording a quick Uber to avoid a downpour or managing an unexpected medical bill, financial resources act as a buffer against the anxieties and distresses that those living paycheck to paycheck cannot escape from.

This isn’t just a concern for the poor. In today’s volatile economy, even middle-class Americans and British are vulnerable to financial strain. Escalating inflation and job market instability are making it harder for many to afford basic necessities, exacerbating the stress caused by everyday challenges.

Jachimowicz’s research, inspired by his father’s advice to “spend money to fix problems,” demonstrates how money provides this crucial cushion. His studies reveal that while everyone experiences frustrating events, those with higher incomes experience less emotional distress as a result of the “money” cushion. This is because money gives them a sense of control and agency in resolving their daily problems quickly and efficiently. Alternatively, for the poor, even when they buy something small, they tend to feel overwhelmingly guilty and ashamed.

His research involved a month-long diary study tracking the daily events of participants, their emotional responses and their choices when presented with daily problems. The results indicated that people of all income levels turn to family and friends for assistance, but those with greater financial resources are far more likely to use money to solve problems. This highlights a critical point: financial scarcity doesn’t just create stress; it can also strain social relationships as people rely heavily on others for support. For those who would like to learn more about the relationships between financial scarcity and everyday distress intensity, you can read Jachimowicz’s paper entitled The Sharp Spikes of Poverty: Financial Scarcity Is Related to Higher Levels of Distress Intensity in Daily Life.

Moreover, Jachimowicz’s work reveals a dangerous “shame spiral”—a downward cycle of escalating feelings of shame and self-blame—that traps many in poverty. When people feel responsible for their financial struggles, they experience shame, leading them to avoid addressing their problems, ultimately making them worse. Jachimowicz stresses that society often blames people for their poverty while simultaneously creating systemic barriers that make them difficult to escape from the financial difficulties.

Ultimately, Jachimowicz argues that a broader societal shift is needed. He hopes his research will encourage critical examination of our institutional systems, urging us to create a society where everyone, regardless of income, feels empowered to navigate life’s challenges with dignity and control. As academic scholars and human rights defenders believe, the ability to manage daily stressors shouldn’t be a luxury reserved for the wealthy; it’s a fundamental aspect of well-being that everyone deserves.

Of course, there is no timeline on when such a utopian vision will come true.

For the time being, as Harvard research indicates, money helps us avoid facing our daily stressors, leading to less anxieties and distresses and better life satisfaction.