If money and happiness were fully correlated, then my happiness should be at an all time high. I have more money than I did last year, more than I had in college, and even more than I did in high school. The graph below is the ideal visualization of how my money should grow with time.
Of course, this is just the ideal version. As I continue to work, I should continue to make more money. Most importantly, my money should compound on itself from my investments. A 10% return on $1 million goes further than a 10% return on $10k. It’s the same return with the same investments, just a larger base to grow.
So if happiness was closely associated with money, shouldn’t the graph of your happiness over time look the same?
We all know this graph isn’t true. Happiness doesn’t compound like money. Life doesn’t work that way. I think the relationship of happiness over time would look like something like the graph below.
Life has ups and downs, but hopefully you end up in a happier place than where you started it. Promotions, deaths, marriages, and other life events happen at a different rate for all. Everyone’s chart will look different. This isn’t to say money won’t have an impact on happiness. Money can alleviate many stresses.
Having money means energy doesn’t need to be spent on worrying about paying rent or putting food on the table. Money enables better education and a higher overall quality of life, no one is able to deny it. Doors are open that are shut for others.
The debate of sacrificing your happiness for money is one I’ve heard many times over the last year. Is it worth it to become an investment banker, lawyer, or surgeon? These are some of the most time and emotionally demanding jobs, but they are also some of the most highly compensated. At what point does the money not matter because of the demanding nature of these jobs?
I think this point differs from person to person. Some people can sacrifice their weekends and spare time. Some might actually enjoy the work and find it rewarding. Others couldn’t imagine getting a call from your boss past 5pm or expected to work into the early hours of the morning. We all have a different break even point.
My goal is to try to maximize the point of making money, while minimizing any impact it has on my happiness. I understand that work is a sacrifice of my time, so I want to do something I enjoy so it doesn’t feel like a sacrifice. For me, control of my time is the key that unlocks happiness. Once I can fully control my time, then I can spend my time on activities that make me happy. An easy equation on paper, much harder to execute.
Peace and Love.