Money and happiness: Is there any correlation?

Conclusions of current personality research Summarized by Jaroslav Prochazka

We western people tend to connect happiness with extrinsic or material aspects

We say: “I’ll be happy if …”

“If I have a new car.”

“If I get higher salary.”

“If I buy a countryside house.”

“If I become famous.”

“If I have a few millions.”

“No, wait! Rather billion ;)”

Is it really like this?

Happiness = Extrinsic aspects

Is it really like this?

Happiness = Extrinsic aspects

Let’s check current research

Let’s check current research

Let’s check current research

Niemiec, Ryan, Deci (2009) The path taken: Consequences of attaining intrinsic and extrinsic aspirations in post-college life. Journal of Research in Personality, vol. 43(3), 291-306.

Goal of the research

• To check the level of students attainment in three categories during studies (Time 1) and 1-2 years after graduation (Time 2)

• To check their psychological health and social functioning at the end (Time 2) we call it happiness in this presentation

Group 1: extrinsic aspirations (money, fame, and image)

Group 2: intrinsic aspirations (personal growth, close relationships, community involvement, and physical health)

Two groups of students

Intrinsic categories checked

Deep and enduring relationship

Helping others improve their lives

Grow and learn new things

Physical health

Extrinsic categories checked

Being wealthy person

Being admired by many people

Appealing image

Research conclusion

• Attainment of the intrinsic aspirations for personal growth, close relationships, community involvement, and physical health related positively to basic psychological need satisfaction and psychological health

• In contrast, attainment of the extrinsic aspirations for money, fame, and image was unrelated to basic psychological need satisfaction and related slightly negatively to psychological health

Research conclusion

• Although people with extrinsic motivation achieved their goals (they become wealthy and admired), they weren’t happy

• Moreover, they mentioned increased anxiety and depression although they achieved their goals!

One research is not enough to convince you?

You are right!

Let’s bring other proofs, e.g.

• Ariely, D. (2010): Predictably Irrational: The Hidden Forces That Shape Our Decisions, Harper Perennial.

• Kasser, T., & Ryan, R. M. (1993). A dark side of the American dream: Correlates of financial success as a central life aspiration. Journal of Personality and Social Psychology, 65, 410–422.

• Kasser, T., & Ryan, R. M. (1996). Further examining the American dream: Differential correlates of intrinsic and extrinsic goals. Personality and Social Psychology Bulletin, 22, 280–287.

And few more …

• Vansteenkiste, M., Neyrinck, B., Niemiec, C. P., Soenens, B., de Witte, H., & Van den Broeck, A. (2007). On the relations among work value orientations, psychological need satisfaction and job outcomes: A self-determination theory approach. Journal of Occupational and Organizational Psychology, 80, 251–277.

• Csikszentmihalyi: Beyond Boredom and Anxiety: Experiencing Flow in Work and Play, 25th anniversary edition, Jossey-Bass, 2000

So, is it really like this?

Happiness = Extrinsic aspects

It’s just a false need generated by current society.

Happiness Extrinsic aspects

No

Let’s save your time hunting extrinsic aspects ;)

After achieving quite low level of extrinsic aspects our happiness and psychological health is no more in correlation!

So what to do instead?

Happiness Known and lived purpose (known and followed intrinsic motivation)

• Think what you are good at, better than others

Don’t worry there is always something ;)

• Think about your intrinsic motivation and write it down

Community involvement, service to others, personal growth, physical health, …

Helping customers to solve their challenges and issues

• Find your “flow” moments (the moments you enjoy and forget about time)

Try to recognize them

Does it include the capabilities you are good at? Why not?

• Try to reorganize your work environment to repeat flow moments and reduce no-flow moments

Include also activities you are good at

• Create the room for mastering your favorite activity It should be also those you are good at

Share the result of mastering with others!

• Find and master also calming activity to decrease stress Music, art, sport, volunteering, massage, manual work, meditation, writing,

children or retiree care, …

• No correspondence between those and your daily job?

• No correspondence between those and your daily job?

• Change it!

• No correspondence between those and your daily job?

• Change it!

• Start the journey and make your hobby your job!