I recently learned an important truth:
If you haven’t got your money in order, you’re selfish.
You can’t help anyone.You could help your family, your neighbors, your church, your ward, even people in other countries you don’t even know.
This realization just killed me.
Money does not make you happy statistically
It has been proven by studies that net incomes only bring about USD 75,000 to a linear increase in quality of life.
People who earn above this magic number show only smaller increases in their “happiness level”.
This is also very easy to understand if you imagine you are making 2,000USD/month vs. 4,000USD/month.The improvement in the perceived quality of life is high, as the majority of the additional revenue is invested directly in goods that increase the quality of life: larger housing, better clothing, more leisure and cultural opportunities.
On the other hand, with an increase from USD 12,000 to USD 18,000, there are far fewer basic needs that are still open and make a noticeable difference in quality of life.Why such income increases can often only be invested in expensive luxury goods: expensive sports cars, jewelry, status symbols.
These objects make you “happy” at short notice when you buy them, but they seem more like a kick that needs to be refreshed again and again.A buying drug.
We seem to be reaching a peak of 75,000USD.
The World Happiness Report also shows a clear money-happiness correlationthat is flattening upwards.
So why become “rich”?
“Let me tell you something.
There’s no nobility in poverty. I’ve been a poor man, and I’ve been a rich man. And I choose rich every fucking time.”
“I want you to deal with your problems by becoming rich!”
The pyramid of needs illustrates very well what we need after we no longer have to worry about food, sleeping space and other material needs.
What drives people above all is the urge for spiritual development: group affiliation (social), recognition (emotional), self-realization (spiritual)
Before that, however, we have to consider the second strongest need, for material needs: security.
Because although the needs according to the pyramid are already satisfied, people are often aware of what it was like when they had no protection of their needs, perhaps even poor.
That’s why everything is projected into growth and security.
Attack is the best defense against poverty, because getting richer reduces the likelihood of getting poorer. Getting richer is exactly the opposite direction to become poorer, thus increasing the sense of more stability and security.
The next stage can be grouped into intangible needs.Satisfying them more and more efficiently is one of the main social drivers in the industrialised countries.
Helping makes you happy
Everyone knows them, the CEOs, startup founders, the superstars of the business world: Mark Zuckerberg, Bill Gates, Elon Musk, etc.
All these people are united by the fact that none of them has material flaws, nor should they have to worry about their future protection.
But everyone has a vision.They want to change or implement anything that they imagined. Many want to help other people in their vision, reduce the suffering of the world, or perhaps advance humanity as a whole.
“Before you are a leader, success is all about growing yourself.
When you become a leader, success is all about growing others.” Jack Welch
The desire for recognition is one of the strongest instincts in man.
Every child is born with it and the maximization usually pursues its recognition for a lifetime.Every acquisition, every action, every success is trimmed either to get recognition by other people, or to get recognition by yourself.
This is what we call self-realization:we ourselves come closer to our imagined image of our ideal self, and thus admire ourselves more.
Self-realization makes the happiest
On the way to fulfilling all the needs of the pyramid, we also receive corresponding reward, in the form of money.
Money is therefore a metric for the processing and fulfillment of our own pyramid of needs.The better the pyramid is fulfilled, the better the man, the more money he has, the more likely it is that his pyramid is largely satisfied.
We come back to the money-happinesscorrelation.
The Dark Side
Just as much money and many opportunities can improve our circumstances, all we need to do is open the news to see a young musician or actor who has totally crashed.
Drugs, excessive consumption, broken relationships, lack of drive, and much wasted potential.
Why is this happening?
Just as the pyramid of needs gives us a reason to live, so too does it have a dark side.The further up you get, the less concrete the needs can be defined.
If food and clothing are still very concrete and solve accumulated problems, the meaning of life is completely intangible and metaphysical.It is therefore difficult, once the tangible needs have been met, to deal with and quantify higher needs.
The example of a star like Justin Bieber shows what is happening here:
- Coming from a middle/poorer background (mother single parent, low-wage jobs)
- Quickly become famous and rich
- Very young
Due to these circumstances, the basic needs were quickly satisfied, and his need for self-realization was also high, as he was celebrated by millions of screaming fans worldwide.
At the same time, his young age has not allowed him to grow organically and step by step into this prosperity.
From underclass to super-rich within a few years. It is not easy for a person to deal with endless possibility overnight.
There is an orientation problem.Often this is then discharged in exuberant behavior.
“There was really no preparing me for this life, I was throwing into this at 12 years old and didn’t really know what I was getting into.
There’s moments I’m really proud of, and moments I’m pretty disappointed in myself for.”
A personality must grow with the demands placed on it.No personality can develop without the time factor.Spontaneous, erratic changes in living conditions, in income levels, are overwhelming. Glory and recognition without limits can then lead to serious consequences.
- Money makes you happy (satisfies basic needs)
- Too much money doesn’t always make you happy (over 75,000USD)
- Money is a tool to generate happiness by creating more security, helping others, or making yourself happen.
- Unearned or rapidly increased wealth often lead to problems (better: drip principle or
organic continuous growth)
Is it worth getting rich?– I think so.
Even if you miss the mark, along the way you will have much to improve in your life and in the lives of others.As long as it grows organically, and personality development has a chance to come after it.