💰The Price of Happiness

Reading time: 3 minutes & 42 seconds

Hello WTL readers!

It's a common belief that having more money is the ultimate path to happiness.

While there's some truth to this, it's important to recognize that the relationship between money and happiness is more complex than it seems.

Today, we'll explore the correlation between wealth and happiness as well as the potential dangers of having too much money.

My goal is to encourage you to build wealth while being self-aware and understanding the possible risks associated with excessive money.

Understanding the costs

There's no denying that financial security can contribute to happiness. Having enough money to meet basic needs and maintain a comfortable lifestyle can lead to increased well-being.

An article in Esquire mentioned that Filipinos need to earn at least PHP 110,000 per month, or PHP 1.37 million ($28,264) annually, to be happy.

Globally, satiation occurs at $95,000 for life evaluation and $60,000 to $75,000 for emotional well-being.

While money contributes to happiness, having it in excess can have negative effects on one's attitudes and overall well-being, which is beyond what anyone can measure.

It was found that individuals who prioritize financial success as a central life goal tend to experience lower well-being and are more likely to engage in problematic behaviors.

Another study shows that individuals with a higher social class were more likely to engage in unethical behavior, which could have negative consequences in their lives.

Lastly, this study highlights the unique challenges faced by children from affluent families, including increased rates of substance abuse, anxiety, and depression.

So what can you do to be both wealthy and happy?

Choose to be happy now.

It is possible for a person who does not yet meet the minimum annual income to remain happy.

One example of a practical approach that can be done right after reading this is cultivating gratitude.

Here are the steps:

1. Take a few minutes to reflect on the positive aspects of your life

   • Supportive relationships

   • Good health

   • Small daily pleasures.

2. Write down three things that you are grateful for

   • Give specific details to describe why you appreciate them.

3. Share your gratitude with someone else

   • It helps reinforce positive emotions and strengthen relationships.

Tip for married couples: Every night, my wife and I say our "Appreciation Post" for the day before we say our prayers. This helps us focus more on appreciation than each other's expectations.

Below are the habits and other things I track on my Notion dashboard to keep me in check and live happy daily as my wife and I build our wealth.

Strike the balance.

To build wealth without falling into the trap of excessiveness, it's essential to strike a balance between financial success and personal well-being.

You can start by setting realistic financial goals that align with your values and priorities.

Then, consider the factors that contribute to a fulfilling life, such as:

1. Prioritizing experiences over material possessions

Research has shown that spending money on experiences, such as vacations or attending concerts, can lead to greater happiness than purchasing material possessions. This is because experiences create lasting memories and foster social connections, which contribute to overall well-being.

2. Giving back to the community

Volunteering and donating to charitable causes can provide a sense of purpose and fulfillment that goes beyond material wealth. Research has shown that individuals who engage in prosocial behavior, such as volunteering, experience greater happiness and life satisfaction.

3. Fostering meaningful relationships

As per this study, strong social connections are a key component of happiness. Investing time and energy in building and maintaining meaningful relationships can lead to greater life satisfaction and well-being, regardless of one's financial status.

The Future of Wealth and Happiness: A Holistic Approach

At the end of the day, it is you who will decide how you want to lead your wealthy life.

Money may not be the ultimate secret to happiness, but it can probably help a bit.

And if you’re rich and miserable, more money won’t help.

The old belief that wealth is the sole determinant of happiness should gradually be replaced by a more holistic understanding of well-being.

This new perspective acknowledges the importance of financial security while also emphasizing the value of non-material factors in achieving true happiness.

By adopting this balanced approach to wealth and happiness, you'll be part of a future where success is measured not only by financial achievements but also by the quality of our relationships, personal growth, and contributions to the world around us.

In this future, you'll find that building wealth can be a rewarding endeavor, as long as you remain self-aware and mindful of the potential risks associated with excessive money.

Whenever you’re ready, here are two ways I can help you:

• 1-on-1 Personalized Coaching: A three-session coaching program where we’ll discuss your financial goals, build your own money management system, improve your money habits and guide you on how to invest on your own.

• Group Coaching: Four live 60-minute zoom calls that will guide the students on the step-by-step guide to improve their finances.

Learn more by scheduling a 15-minute discovery call here.