Are the Wealthy Really Happier?

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Categories: wealth, values, life

“It is neither wealth nor splendor; but tranquility and occupation which give you happiness.”
Thomas Jefferson

Is Thomas Jefferson suggesting that money does not lead to happiness? Well that’s not exactly a new idea. Yet many of us are really stressed out and money worries seem to contribute to that stress. This post will explore the relationship between money and happiness a bit and look at wealth in a broader way.

Main Topic

Go back in time and think about how the kings and queens lived in the 1500’s. For a reminder, check out the Showtime series, The Tudor’s on-line or DVD.  

Did the kings and queens of the past have  _______________? (Fill in the blank)

• Microwaves
• Televisions
• Electricity
• Telephones
• Cars
• DVD players
• Computers
• Washing machines
• Indoor heat
• Toilets
• Running water
• Blue jeans
• Sweat pants
• Gym shoes
• Tractors
• Grocery stores
• Gel pens
• Pads of paper
• Video games
• Unemployment payments
• Health insurance
• Social security
• Highly trained dentists and doctors
• Malls and department stores
• Long lives

You get the idea. Every one of you reading this blog is living better than the royalty of the past. Even the poorest Americans and members of the developed world have more conveniences and luxury than royalty of the past! If you have a television, a car, or electricity, you are living better than a KING?

In Jean Chatzky’s book The Ten Commandments of Financial Happiness, she did extensive research on the relationship between money and happiness. And you know what she found? After one’s basic needs are met, additional money does not lead to greater happiness. She categorized survey respondents who were either SOMEWHAT or VERY HAPPY into income levels. The results were incredible:

I confess, I was fairly surprised by these results. What Chatzky found was that 78% of those earning between $25,000 and $50,000 were somewhat or very happy. In other words, over 3 out of 4 people in that income level were happy! Now, bump up the income levels a bit; there is only a 3% difference in happiness between those making $50,000-$75,000 and those making $75,000-$100,000! And, the happiness level of those making over $100,000 actually drops a bit! WOW!

So if more money doesn’t mean greater happiness, then what does? I challenge you to really question your own thinking.

Consider what in life gives you the greatest amount of joy, pleasure and passion. Then think about how much it costs. 

Look, I’ll be honest, I love my cable TV, but I also love my husband, my parents, my cat, and my friends, and they all give me a ton of pleasure. One of my favorite activities is playing scrabble or other games with my husband; cost about $10.00 for a game we bought 10 years ago. Another one of my very favorite activities is going for a walk, and that only costs the price of gym shoes, which I need anyhow! My computer gives me hundreds of hours of pleasure, as well as helps me do my job, and write this blog; and it wasn’t cheap, but I bought it 5 years ago and it’s still going strong! (I even learned how to reinstall the operating system when it was running really slowly and avoided paying the computer guy to fix it!)

So before you worry about being poorer than the man or woman next door, or having an older car, or a smaller apartment or home, switch your mind around and think about the incredible wealth that you already have, much of which cannot be measured with a calculator!

 Practical Application

If you’ve been reading this blog for a bit, you are probably seeing a recurring theme; manage your attitude and be happier. Before you click out, humor me a bit and read on.

I’m not suggesting that if you focus on the positive, all of your troubles will vanish! That’s just unrealistic.

What I am recommending is that to gain wealth, you have to be an active participant in your own life. The more you commit to taking charge of your life, the greater your wealth and tranquility.

In fact, you will probably earn more money in a year, than residents of undeveloped nations earn in a lifetime. And you probably wasted more money last year on stuff than many people in poorer locales actually earned!

Action Step:

Get a notebook and label it: “(your name) Personal Finance” and keep it by the computer. Use it to keep all of your personal finance goals, thoughts, activities, and plans.

 Grab a calculator. Multiply your annual income by the expected remaining years left in your working life. In aggregate, it is certain to be a great sum of money. Think about the amount and ask yourself:

Is this amount of lifetime earnings sufficient to meet my financial goals?