Studies have shown over and over again that after a certain point, money does not buy you happiness. In the United States, there is a positive relationship between household income and happiness, but the relationship flattens out once the income reaches about $75,000, the level of income that typically covers a household’s basic needs.
Still, people often fall in love with money. At times, people develop such a strong desire for money that they start sacrificing their time for more money—above and beyond what is healthy. They may give up the activities that are shown to actually increase happiness, like going on vacation and spending time with friends and family.
Aside from supplying the necessities and some niceties that we need for a good life, why do we love money to the level where it can start to make us sadder?
A former hedge fund trader, Sam Polk, calls himself “a former money addict.” And for him, the answer is quite simple: his bonus.
“I would think about my bonus every day,” in the opinion piece in The New York Times, he explained about his time on Wall Street. “Every day for a year, I would think: What is it gonna be? Who’s gonna get paid more than me? I wanted more money for exactly the same reason an alcoholic needs another drink.”
Performance incentives can be found not only on Wall Street but in many professions. Salespeople earn commissions, athletes receive bonuses based on their statistics, and CEOs get stock options.
It’s this fixation on money that leads to a stronger desire for money: If you can’t stop thinking about money, you want it more. So people who repeatedly receive performance incentives tend to develop a stronger desire for money over time.
Studies have shown that when people have a strong desire for money, they tend to sacrifice time for self-growth, leisure, and intimate relationships in order to chase money.
So, it’s worth reflecting on your work and your life priorities. Have you become obsessed with money since you changed your job? Do you think about money a little too much? Does your paycheck have an impact on what you desire, value, and prioritize in life without noticing it?
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