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Money Can’t Buy Happiness??
The phrase “Money Can’t Buy Happiness” has evolved over hundreds of years as various philosophers and writers weighed in on the link between money and happiness:
In 1750, Jean-Jacques Rousseau wrote “Money buys everything, except morality and citizens.”
The William & Mary College quarterly was the first to publish “Money Can’t Buy Happiness.” in the early 20th century.
Pablo Picasso summarized the concept by saying “I’d like to live as a poor man with lots of money.”
Gordon Livingston espoused “Money cannot buy happiness, it can, however, rent it.”
Finally, Eminem gave this advice to kids on the Letterman show “Money does not buy happiness, it buys crazy ass happiness”.
While each quote has a sense of truth depending on the author and reader’s perspective, the research into the connection has produced contradictory results.
A study from 2010 found that day-to-day happiness peaked at an annual income of $75,000.
A different study from 2021 found that happiness steadily rose beyond $75,000 with no plateau effect.
To reconcile these differences, the researchers paired up for a third study and found that overall, larger incomes are associated with ever-increasing levels of happiness. But in breaking out the overall group, they found those that at the bottom end of emotional well-being benefited the least, with additional money and happiness capped out at $100,000. By contrast, those with the highest levels of emotional well-being experienced accelerated happiness as the income grew over $100,000.
Study author Matthew Killingswoth summed it up by saying “Money is just one of the many determinants of happiness. Money is not the secret to happiness, but it can probably help a bit.”
So what does this mean for your practice:
For you: Having the money to pay the bills and provide for your family will reduce stress and provide some happiness. However, chasing production numbers is not the sole answer to happiness in a professional and personal manner. As you develop a strong, well-rounded emotional state, the additional income and growth of the practice will bring you more satisfaction and happiness.
For your team: Pure compensation is not what motivates most people and especially those emotionally stable people that you want working in your practice. If a team member is not finding joy and pride in their work then just paying them more will not create enough happiness for them to stay over the long term. You must develop a practice culture that fulfills your team’s desire for belonging and purpose.
Since everyone’s emotional well-being is different and in constant flux, there is no easy answer to what will make you and your team happy.
If you are looking for ideas on improving your practice to become more profitable and potentially happier place, please schedule a consultation with JNG Advisors today.