Does Money Buy Happiness? This Answer Might Surprise You
We’ve all heard the phrase “money can’t buy happiness” and then thought to ourselves: “I bet it can for me!”. Turns out we might be wrong.
In 1978, a study by researchers at Northwestern University revealed that lottery winners had returned to their base level of happiness within just 6-to-12 months of their so-called “life-changing event”. In fact, in some ways they were less happy than they were previously, because compared to the high that came with their windfall, ordinary pleasures became more mundane and less pleasurable than they had been previously.
I’ve seen this with entrepreneurs too. Someone close to me recently sold their business for ~$30m. Already, just a few months later, they confided in me that they’re feeling directionless and bored. Definitely not Mai Tais on the beach like we might imagine (not any more, anyway).
Another study, this time out of University College London in 2014, found that happiness doesn’t generally stem from massive windfalls. Instead, it tends to come when our simple, day-to-day expectations are exceeded.
To be truly happy (once we get towards the top of Maslow’s hierarchy, at least), we just want to get what we feel we deserve… plus a little bit more.
In other words, although we may think we want massive success, in reality happiness will come from meeting our everyday goals, doing a good job and feeling we make a positive difference. In other words, we’re happiest when we walk a simple path along which we experience modest, regular victories over our circumstances.
So what?
Well, at times we’re all guilty of thinking about how things will be better in the future.
“It will all be worthwhile once I get that next [promotion / bonus / investment / exit].”
But the evidence suggests that, if and when that big event finally arrives, it won’t be long before we’re feeling 𝘦𝘹𝘢𝘤𝘵𝘭𝘺 as we do right now.
So what should we do?
Well, maybe three things:
#1. Once we’ve decided on that BHAG we’re aiming for, we—me included—should try to forget it. Instead, we should focus on the little challenges, opportunities and victories we can achieve today that will help us move forward.
#2. If you’re lucky enough to receive a life-changing windfall, remember that what may have seemed unobtainable yesterday can quickly become something you take for granted. To continue to feel happy, you’re probably going to need to find a new purpose and, yes… a new struggle.
#3. Maybe take a moment to reflect on what this means for the people around you. If we want our families, friends and colleagues to be happy, it’s worth considering the role we play in their journey, not just our own. They are the hero in their story. What challenges are they trying to overcome, and how might we help them exceed their expectations?
Right, I’m off to ask some searching questions…
