Managing Money and Happiness
As Elon Musk’s net worth skyrocketed, the billionaire did something rather unusual. He sold his houses, moved to Texas and rented a “mini-house.”
That’s odd. Society tells us that once you win the lottery, strike oil or cash out in some extraordinary manner you should go on an obnoxious spending spree.
However, as Musk finished out 2020 he liquidated the last of his seven homes. Why?
Most likely, Musk realized there is a balancing act between benefitting from possessions and becoming a slave to those possessions. As Musk attempts to focus his attention on car company Tesla, space company, Space-X and several other endeavors, he realized these material possessions were huge distractions to actually enjoying the things that make him happy.
It is also interesting to see the stock market and home values at peak levels, and yet reported cases of depression are at record levels.
Psychologist and professor Ed Diener was the first person to scientifically study happiness. Diener compared people on the Forbe’s list of wealthiest people with the general population. He found the richest people were only slightly happier than average. However, 37% were less happy than average Americans.
There are many lessons to be learned from Musk, Diener and others, who have taken the time to critically evaluate what makes people happy.
Having a healthy relationship with money, and deriving happiness, will mean different things for all of us. Underlying this, there are a few universal truths.
Occasionally, a family member or a student will be at their wits-end nearing hysterics. To refocus them, I ask a few questions:
1) Do you have a roof over your head?
2) Do you have food to eat?
3) Does your toilet flush?
4) Do you have access to medical care?
5) Is your life safe?
Assuming you can say “yes” to these, the remainder of life’s issues are just details to logically sort through. Start each day asking yourself these five questions.
The pandemic and working from home has highlighted and reinforced how important strong social connections are. A Zoom call simply does not replace dominos with your friends or having a cup of coffee with someone you respect.
In building your social network, if you want good friends, be a good friend. Similarly, if you want a good spouse, be a good spouse.
Money might buy “companionship,” but it won’t buy unconditional friendship. Who can you call at 2 a.m. and say, “I need help, will you come over?” The person that says yes, without being compensated, is most likely that unconditional friend. They are rare and are more valuable than money.
Put down your electronic device and look into the eyes of the people you interact with. Ask open-ended questions and actively listen to what they are saying.
Take the time to hold the door for the person behind you and say “please” and “thank you.”
Go out of your way to do something nice for others, especially strangers.
Sleep well and eat right. Sleep allows our bodies to repair without the need of another prescription. Eating is fuel to make everything work. It is amazing how much better your life is when you are well rested and properly fed.
Restore your faith. I don’t care what brand of faith you practice, but take the time to sit, think and focus on your place, purpose and meaning in the world.
Find your passion and be good at something.
Earn your success by having goals. Accomplish something and then reset your goals higher. Continually challenge yourself. It improves your body and mind.
Exercise. It releases endorphins and gives you a natural high.
Read and study such that you go to bed a little smarter each day. Knowledge is like compound interest. Just an extra 0.1% every day makes a huge geometric benefit over the long run.
Being intentional about these things will make you happier….and cost very little.
Dave Sather is a Certified Financial Planner and the CEO of the Sather Financial Group, a fee-only investment management and strategic planning firm.