The Fallacy Of Being Rich When You Are A Millionaire
If you ask someone, when are you rich? It’s likely most people give the following answer; when you have a million. Being a millionaire is often seen as the moment of being wealthy. The idea is sold to us that you will have a different lifestyle after reaching the one million mark. This is also why lotteries are popular because who doesn’t want to win this kind of money. The commercials show it can happen to you and how your life could change in an instant.
The reality Most people won’t become a millionaire in their life. Does that mean they aren’t rich or successful? I don’t think so because life isn’t binary. My parents taught me from a young age to always be grateful for the things you take for granted. Food & clean water every day, clothes to wear, a roof above your head, education and the most important thing: your loved ones. These are things you are more likely to not think about because you take it for granted when you have it. However, there are many people in the world that would be happy to have access to these things. Money makes your life easier and leads to more life satisfaction, but after meeting your basic needs and a certain income there is a stagnation.
The study about money and life satisfaction Psychologists of Purdue University and the University of Virginia analyzed the Gallup World poll data of 1.7 million individuals in 64 countries and cross referenced their earnings and life satisfaction. They concluded that $95,000 dollars a year is rated as the ideal income for life satisfaction and between $60,000 and 75,000 dollars a year for emotional well being. The reason is money makes you happier until the moment all your basic needs like food, housing and healthcare are met. Afterward, the correlation between money and life satisfaction stops.
Knowing this fact could change your view that making a million or more a year will make you happier. Their study revealed there is even a decrease in life satisfaction after a certain income which could be because of other circumstances. Being satisfied is something most of us can be by searching for fulfillment, while a lot of money could only give you a temporary boost. Research has shown over time you are likely to return to your individual setpoint of happiness.
Strive for fulfillment in your life Striving to fulfill your potential is something I believe in. Finding a passion and improving yourself could bring you happiness and fulfillment, which is the point of life. For some people this leads to becoming a millionaire or billionaire while others won’t. However, having the frame of mind that you aren’t doing well and comparing yourself with others that are wealthier leads to unnecessary pressure and unhappiness.
Most people can’t imagine making millions in a year and especially at the beginning of their career. Therefore, Gary Vaynerchuk, CEO of VaynerMedia, advises to strive to make $70,000 dollars a year. Daniel Kahneman and Angus Beaton also revealed with their study there is no further progress of emotional well-being beyond an annual income of $75,000.
When your basic needs are met, having purpose and meaning in your life and job become more important to be satisfied. Without purpose, it’s difficult to keep developing yourself, which affects your motivation. Being rich is also something which is not always related to your net worth. Being educated, having knowledge about different subjects, seeing different parts of the world, getting to know people from all walks of life and many other things also enrich your life because you learn to understand different perspectives. Money is something you can have one moment and with bad circumstances lose (a part of) it the other moment. Therefore, it’s recommended to not to let your happiness depend on your wealth.
Takeaway Many people believe that becoming a millionaire is the setpoint of being rich, which leads to more life satisfaction. Research has proven beyond an annual income of $75,000 happiness doesn’t increase and life satisfaction even decreases after earning $105,000 per year. This could sound contradictory to your beliefs, but we all have worries that can’t be solved by money. Having fulfillment in your life is proven to lead to more life satisfaction. Luckily, you can always achieve this, which is an attainable goal for most of us.
Thank you for reading and I wish you a nice day.