Learn more about is money really does buy your happiness or if there are other factors at play with Shane Tenny, CFP®.
Transcript:
SHANE TENNY: Hi there. Shane Tenny, managing partner at Spaugh Dameron Tenny.
Does money buy happiness? That was the headline I saw a few weeks ago talking about research done by Daniel Kahneman at Princeton University on this very question.
Such a big question that's been asked for so many years. Researched by the University of Pennsylvania's Wharton School of Business and, believe it or not, for over 80 years by Harvard's Center for Adult Development, where they've spent many, many decades interviewing over three generations of people every year, working them through surveys, health exams to try and ascertain their level of happiness and contentment with life. And the reason the question keeps getting asked is because the results are so complex and in some cases, confusing. Because, after all, we know there are plenty of people with significant wealth who are quite disappointed, frustrated, and angry. We know there are people with very little means who seem to have an outlook or attitude of happiness, and so it creates uncertainty.
Now, if money and the seeds of money don't lead to a growing garden of happiness, is there anything that does seem to be correlated? I think that's what is really behind this question. And as financial planners who've worked with hundreds and hundreds of families all across the country, in our experience, in fact, there does seem to be something correlated with clients who are happier. There is something that goes up in value and seems to result in clients who have a higher sense of contentedness and joy. And that thing that goes up in value and leads to a sense of well-being is appreciation.
I don't just mean appreciation in a portfolio or a paycheck. I mean a sense of appreciation. This word, of course, in financial terms, does mean a growth in value. When we apply it to a portfolio, we're talking about something that's gone up in value. But the definition still works when we talk about appreciating the people or the things around us.
When we do this, we are ascribing to those things a higher sense of value and communicating essentially our gratitude for those things. When we see appreciation and gratitude and that worldview in individuals and families, it is always correlated with a more serene outlook on life, a sense of well-being, joy, and happiness. And this is really profound.
In fact, I was listening to a podcast from my friend Dan Sullivan at Strategic Coach, and he made a really interesting observation. In his experience, gratitude seems to be an effective antidote for almost every negative emotion. He said it's hard to nurse a sense of worry and anxiety when you're also feeling an undergirding sense of gratitude. It's hard to be jealous when you're also feeling thankful.
Now, let's face it: there are moments when we all struggle with this when I feel disappointed, upset, or discouraged. And what I've found is that often, that comes about because I'm comparing my current situation to where I expected to be or hoped to be, or really want to be. When I measure the future I was hoping for or expecting with where I actually am, I become aware of the deficit.
And that can lead to an inward focus and not a sense of gratitude. But what is in my control is the ability to change my perspective. And if I look backward and see how far I've come, where I was a year or five or ten years ago and where I am now, I realize how much there is that has been accomplished, all that's occurred, all the growth that has happened, and I'm reminded of how much there is to be grateful for. And that sense of gratefulness, thankfulness, and appreciation always shows up with a greater sense of happiness, contentedness, and joy. It occurs to me the saying that life is 10% what happens to you and 90% how you respond to it is really profound.
And so, while money may not always buy happiness, gratitude, and appreciation will always point you in the right direction. If you'd like to talk about this or anything else, don't hesitate to reach out. I'll see you back here next time.
