Having abundant financial resources may contribute to our happiness, but the big picture finding is that millionaires (even multimillionaires) are not perfectly happy with their lives.
It found there isn't much difference between the happiness of multimillionaires until you're worth more than $US10 million. But even the super-rich aren't significantly happier than regular millionaires. Researchers describe the difference as “modest”.
Although the mass media has convinced many Americans that wealth leads to happiness, that’s not always the case. Money can certainly help you achieve your goals, provide for your future, and make life more enjoyable, but merely having the stuff doesn’t guarantee fulfillment.
“It is important to remember that having too much money does not make someone intrinsically unhappy,” he said. Instead, it's how you choose to use your wealth that can affect your mental health and well-being, either positively or negatively.
The research between salary and happiness suggests similar insights. Even those on the Forbes 100 wealthiest were only slightly happier than the average Americans, according to a study by Ed Diener of the University of Illinois.
Some studies even suggest that rich kids are, counter-intuitively, more depressed and anxious than their middle- or low-income peers. And we know from cross-national research that depression is more common in wealthy countries than in the less wealthy, less industrialized ones.
A growing literature has studied empirically whether the rich are more selfish than the poor, both in behavior and in underlying preferences. The evidence is mixed: Some studies report more selfishness among the rich (5–7), others that the rich are not different from the rest of society or even less selfish (8–11).
Key Takeaways. Sudden Wealth Syndrome (SDS) refers to a psychological condition or an identity crisis in individuals who have become suddenly wealthy. Sudden Wealth Syndrome is characterized by isolation from former friends, guilt over their change in circumstances, and extreme fear of losing their money.
But it may also be that those with a higher income and/or education are much more likely to have stress associated with goal achievement (such as being in college or graduate school), while those with less income and education are more likely to experience stress associated with circumstances beyond their control (bad ...
It happens all the time. More often than you might think, rich people go broke. Even more often, they simply lose a lot of money. It's worth taking a look at some of the reasons wealthy folks lose money, because many of those reasons apply to nonrich people, too.
The 2010 study found that money could only boost happiness up to a point — about $75,000 in annual earnings. Beyond that figure, the researchers concluded, money had little impact.
Average Net Worth by Age
The average net worth of someone younger than 35 years old is $76,300, as of 2019. From there, average net worth steadily rises within each age bracket. Between 35 to 44, the average net worth is $436,200, while between 45 to 54 that number increases to $833,200.
Regardless of other living conditions, a higher income was consistently linked to a reduced self-rated level of loneliness.
Billionaires love what they do. They enjoy their business and the industry they're in. Naturally, this makes you happier than having to do what you don't like. And billionaires are free in the sense that they work not because they have to, but because they like doing it and find it important.
The Boston studies have consistently found respondents to be a generally dissatisfied lot, whose vast fortunes have contributed to deep anxieties involving love, work, and family. They are often even dissatisfied with the size of their fortunes.
The rich are often quieter than the poor because they have less to worry about. Money can buy you food, shelter, and security. It can also buy you freedom from want and fear. When you have enough money, you don't have to worry about where your next meal is coming from or whether you'll be able to pay your rent.
Money may create some of those feelings, but wealth also frequently causes anxiety and pressure to make good financial decisions about how it is invested, spent, gifted, or used to create a legacy. Below are the main reasons high net worth households worry about money and a few insights about what to do about it.
If you define “hard-working” by the number of hours one spends at their job and “optimizing” themselves, rich people do reportedly work “harder” on average, although these self-reported numbers from “successful” people are likely greatly exaggerated.
The personality traits of the super-rich
“This can come off as cold, but they don't tend to react in the way most people would. They also tend to be extroverted, outgoing and open to new experiences. "This defies a popular stereotype of the reclusive, introverted millionaire that is often portrayed.”
Many people probably wish they had more money, but plutophobia is a fear of money or wealth. People with plutophobia may fear wealthy people or fear becoming wealthy themselves.
These high-status and wealthy people were indeed more extraverted, conscientious, emotionally stable (low in neuroticism), and were also more open to new experiences, narcissistic, and high in an internal locus of control.
The more you have, the less you give. According to a 2002 Independent Sector survey, households earning more than $100,000 a year contributed only 2.7 percent of their income to charity, while those earning less than $25,000 gave a more generous 4.2 percent. New research shows that's no accident.
In particular, if you're not careful, money may start to change your identity or sense of self. Having a lot of money can influence the way you think about yourself. It can change your sense of morality, and it can even have an impact on your relationships with other people.