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Would you like a million pounds?
We all know that money gives us our basic human needs such as food, shelter, health and many other possessions and experiences. Financial security allows us to take our mind off obtaining these resources and gives us the freedom to focus on the pursuit of happiness.
According to researcher Ed Deiner of the University of Illinois, ‘Money is an object that many or most people highly desire, and pursue during most of their waking hours’.
So why are there so many miserable millionaires?
As with many things in life, you can have too much of a good thing that it becomes bad. As Mary Poppins rightly said, ‘Enough is as good as a feast’ – and this can be applied to money.
There are endless examples of the dangers of being wealthy – obsession with money, stress, trust issues, inability to savour life’s pleasures, guilt, too much choice… just to name a few…
To master our relationship with money we must create a balance between ‘too much’ vs ‘not enough’, to avoid the negatives at either end of the scale.
How much is enough?
Regardless of the negatives that can accompany affluence, research indicates there is a cap on the relationship between money and happiness.
Princeton University found that people needed an annual income of $75,000 per year per household to be happy. Above that, they found there is no effect on emotional well-being or happiness levels.
The Washington Post wrote, ‘People have a threshold of financial security and material wellbeing’. Once that threshold is reached, there are diminishing returns on salaries exceeding that amount.
Further to this, Felix Dennis, founder of Maxim magazine, advises to stop making money after the first few million, ‘Beyond that you are wasting your life!’
What about me?
In reality, there is no magic, one-size-fits-all number.
Your perfect level of wealth depends hugely on you as an individual – your aspirations, values, beliefs and personal circumstances. It is important to stop and think about how money can positively and negatively impact all areas of your life, in working out how much is required for your happiness ROI.
Warren Buffett is a great example of this. He was worth $200,000 at 25. At 82, he explains
‘Money has given me the independence to do what I love daily. Beyond that it has no real utility for me but enormous utility for others. That is why I am giving it away’.
What you actually do with your money is vital. A healthy bank balance may create a short term buzz. However, in the wise words of Miguel de Cervantes, ‘The gratification of wealth is not found in mere possession or lavish expenditure, but in its wise application’.
Ask yourself this;
If your aim is to make more money – Do I know why this is my aim and when will be enough?
If you are already wealthy – Am I getting real personal value from my money and how?
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Source by Leah Perkins
