“Whoever loves money never has money enough; whoever loves wealth is never satisfied with his income.” King Solomon

A study published by the National Academy of Sciences demonstrated a strong correlation between income and life satisfaction, as well as income and “emotional well-being,” up to $75,000 in annual income. After that, the study finds that life satisfaction and happiness leveled off.

It is a common misunderstanding and widespread belief that high income are associated with success, contentment and happiness. But this belief is mostly illusory.

A lot of people believe also that accumulating significant wealth is somehow equates with success, contentment and happiness. Yet, people with above-average income and significant wealth are relatively satisfied with their lives to a point, but are barely happier than those who live paycheck to paycheck.

Moreover, the effect of income on life satisfaction seems to be exceptionally transient. People tend to exaggerate the contribution of income to happiness because they focus, in part, on conventional achievements when evaluating their life or the lives of others. King Solomon asserted a couple of thousands of years ago that, “Whoever loves money never has money enough; whoever loves wealth is never satisfied with his income.”

Several 2018 studies by the National Institutes of Health found that even among millionaires, more wealth can lead to more happiness. Interestingly, they found that the source of the wealth also mattered; self-made millionaires were happier than lottery winners.

Some people are quick to say, “Well, I’d rather be happy than rich.” Wealthy people wonder why anyone questions that you can be both. However, the happiness wealth brings alone is at best fleeting unless income and wealth are closely aligned with your life’s purpose, to your continued learning and growth, to your practicing gratitude and to your helping others.

And while wealth can’t “buy happiness” per se, it can buy you more time with your family and friends – which, presumably, would make you happier. You can use wealth to switch to a single-income household or to help you and your partner retire young and raise children full-time. For that matter, you can use it to reclaim more of your time to do anything you want.

Combine Building Wealth with Purpose, Growth and Helping Others

“I would rather have it said ‘He lived usefully’ than ‘He died rich.’” Ben Franklin

Founding Father Benjamin Franklin lived his life not in terms of how much wealth he could accumulate, but rather in terms of how many people he could help. To him, being useful and continuing to improve were more important and represented there own reward.

Wealth and income as forms of fulfillment and happiness in Franklin’s views were just an illusion. Franklin did not want his life to be measured by dollars and cents. He wanted to live a more meaningful one, one where he consistently improve himself and always positively influence other people. He live a life that counted to himself, others and a grateful fledgling nation.

Key takeaway is that high income and significant accumulated wealth alone does not guarantee a life of happiness and success unless it is closely aligned with your knowing your purpose in life, your continuing improvement and growth to reach your maximum potential, your gratitude and finally your strong desire to help others.

References:

1. https://www.moneycrashers.com/wealthy-money-mindsets-financial-success/
2. Kahneman D, Krueger AB, Schkade D, Schwarz N, Stone AA. Would you be happier if you were richer? A focusing illusion. Science. 2006 Jun 30
3. https://www.success.com/john-c-maxwell-the-3-things-i-know-to-be-true/

In the book “Don’t Sweat the Small Stuff, and it’s All Small Stuff”, Psychotherpist Richard Carlson P.H.D talks about one hundred things in life that are seemingly insignificant yet they tend to take up our time, stress us and keep us from achieving our best results.

Carlson says that “Often we allow ourselves to get all worked up about things that, upon closer examination, aren’t really that big a deal. We focus on little problems and concerns and blow them way out of proportion. A stranger, for example, might cut in front of us in traffic. Rather than let it go, and go on with our day, we convince ourselves that we are justified in our anger. Try to have compassion for the person and remember how painful it is to be in such an enormous hurry. This way, we can maintain our own sense of well-being and avoid taking other people’s problems personally.”

“Money is a terrible master but an excellent servant.” ~P.T. Barnum~

Phineas Taylor (P.T.) Barnum—American founder of Barnum & Bailey Circus—was renowned for being a showman who knew how to make a buck, which is how he became one of America’s first millionaires. His quote that “Money is a terrible master but an excellent servant”,  sums up the importance of making your money work for you.

Barnum points out that, if all you do is work for money, it essentially becomes your master. On the other hand, if you put your money to work paying bills and for life’s necessities, acquiring assets and other investments, etc., it serves you. So strive to be the master of your destiny—financially, anyway—by ensuring you’re the master of your money.

How to Rectify Past Financial Sins

Everyone makes mistakes, especially when it comes to money. Find out how you can set yourself on a better financial path by atoning for some of your worst money missteps.

Nobody’s perfect — especially when it comes to managing money. While you may try to keep track of your funds, budget wisely and spend well now, you may have made some serious money mistakes when you were younger. Since having money doesn’t exactly come with an owner’s manual, you may have had lackadaisical spending ways or gone wild with credit before you smartened up and started taking money seriously. Still, those past sins can come back to haunt you in the form of creditors or less-than-impressive credit scores. Your best bet is to face money issues head-on and atone for those missteps so you can move forward with better habits.

Open up
When dealing with past financial mistakes, it’s easy to turn a blind eye and hope that they simply go away. But when you owe money or default on loans, not only are those creditors still looking to get paid, it can affect your long-term ability to secure credit and enjoy future financial freedom. Instead, gather up all of your statements and go through them with a fine-tooth comb to give yourself a general picture of which mistakes you’ve made but can be easily rectified with dedicated work.

Make a plan
Once you know where you stand money-wise, it’s time to create a plan to pay back creditors, and remove any inaccurate information on your credit report. This may require some leg work on your part, so plan on working with creditors on settlement deals, checking your credit report and contacting your creditors or credit reporting agencies to remove inaccuracies that you may have found. Consider your plan like you would a work project: focus, then put your energy into accomplishing it.

Start small
No one is saying that you need to put all of your savings toward paying off an old debt to get rid of it. In fact, starting with smaller debts — an old credit card or small tax bill, for instance – helps you get rid of some of your smaller mistakes, and can also help provide a sense of accomplishment. Start with the most manageable issues. That way, you’ll have more of a leg to stand on when negotiating with larger creditors.

Keep it rolling
Once you’ve made headway on some of your smaller money mistakes, it’s time to get serious. Keep up the good work by taking a look at your current budget and cutting back spending to free up money for payment of other debts, or making settlement agreements with other creditors. When you have cash in hand, creditors may be more willing to settle, but you’ll need to be prepared to act immediately. While it might mean a few months of leaner living, having a clear conscience and rectifying the mistakes of the past can help you move forward with your future financial goals.

References:

1. https://www.creditonebank.com/articles/10-famous-quotes-about-finances-credit