Research has shown that money does not necessarily make people happy, as humans are never satisfied with what they have. A wealthy couple’s conversation at a party hosted by a multi-millionaire illustrates this point, with the husband saying he has something the host will never have: “enough.”
For some people, having more money only leads to wanting more, and it becomes less effective at bringing joy.
A gerontologist, Karl Pillemer, interviewed over 1,000 elderly people for his book 30 Lessons for Living: Tried and True Advice from the Wisest Americans, seeking guidance from those who had lived “rich and fulfilling lives.” Not one person said that working hard to make money to buy things is the key to happiness.
None of the elderly people interviewed said it’s essential to be as wealthy as those around them or to choose work based on future earning power. However, they did acknowledge that money is important, as it can solve problems and make life easier.
Understanding the Concept of “Enough”
Studies have shown that money does increase happiness, but research also suggests that there is no known satiation point, and each additional dollar delivers less happiness than the one before it. Daniel Kahneman, a psychologist, notes that individuals with high incomes are generally in a better mood than those with lower incomes, but the difference is not as large as most people expect.
Happiness depends on factors other than income, such as control over what you’re doing, progress in what you’re pursuing, and relationships. Money can provide freedom, tools, and time, which can contribute to happiness, but it is not the primary factor.
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Researchers broadly agree that four major points have a significant impact on making people happy: control, progress, and relationships. While money is not on the list, it can tie into these points by providing freedom, tools, and time.
Striving for financial independence is worthwhile, but it’s a marathon, not a sprint. Having enough money can allow individuals to live their life by design, be more in control, and provide meaning and purpose.
The Importance of Financial Independence
Money can grant freedom from being locked into a job that you don’t enjoy, and provide the tools necessary to achieve progress in pursuing your goals. Karl Pillemer found that the elderly people he interviewed had a unique perspective on what “enough” means.
Daniel Kahneman notes that happiness depends on factors other than income. Understanding what “enough” means can help individuals focus on what truly brings them happiness and fulfillment.
Just look what happens to all those actors and sporting heroes who earn staggering incomes yet ruin their family lives. Progress in what you’re pursuing. You’ll notice “more money” isn’t on the list.