Yahoo Finance Why millionaires aren’t happy until they’ve doubled their wealth
They may have enviable lifestyles, awe-inspiring talents and more money than they know what to do with, but do millionaires have happiness?
According to a paper on the topic, the answer is “Not yet”.
Researchers from the Harvard Business School asked 2,000 people with a net worth of at least $US 1 million how happy they were and what they would need to do to be perfectly content.
“All the way up the income-wealth spectrum basically everyone says [they’d need] two or three times as much,” researcher Michael Norton told The Atlantic.
Why though?
It’s the same reason a lot of us compulsively spend: comparison.
The urge to compare oneself against others doesn’t disappear upon the accrual of wealth, it just changes, Norton explained.
Once you have enough money you may move into a nicer area with a larger home. In doing so you move the goalposts; now you’re comparing your home to nicer homes.
The research also found that wealthier millionaires aren’t happier than other millionaires until they’ve amassed more than $US 8 million.
Interestingly, millionaires who earned their own wealth rather than inherited were also more likely to be happy.
That’s because inheriting wealth can diminish a desire for employment. This has trickle-down effects of a weaker sense of purpose.
Additionally, inherited wealth doesn’t come with the feelings of achievement enjoyed by those who earned their wealth.
The study also noted that wealthy people are more likely to engage in volunteering at non-profit organisations, donate items or give money – all factors that can contribute to happiness.
A 1985 study of millionaires found rich people believe money generally transforms into happiness when it’s used to help other people.
A 2003 study found the freedom to do what you want with your time is also a critical enabler of happiness.
And, a 2015 study found wealth is also tied closely to ambition. The accrual of wealth can help millionaires achieve what the Harvard researchers described as the “fundamental human goal of high status.”
What did we learn?
Money doesn’t necessarily equal happiness, unless you have an obscene amount of it. Otherwise, happiness is more closely tied with feelings of success, freedom and kindness.
Maybe there is hope for the world after all.
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