| 0s | |
| 10s | Does more money equal more happiness? The |
| 13s | |
| 15s | Having money gives you the freedom to |
| 17s | live comfortably. You can eat what you |
| 19s | want, live where you want, and have what |
| 22s | you desire, go wherever, and spend time |
| 25s | doing what you want to do without |
| 27s | compromise. However, the relationship |
| 30s | between money and happiness is not quite |
| 33s | as simple as we've historically assumed. |
| 35s | Research shows that money can |
| 37s | drastically improve happiness for those |
| 40s | who can't afford the basics: shelter and |
| 43s | |
| 44s | But once basic survival needs are |
| 46s | fulfilled, money has less and less of an |
| 49s | impact on happiness. A person who makes |
| 52s | fifty thousand per year is far more |
| 54s | happy than someone who makes five |
| 56s | thousand, but someone who makes fifty |
| 58s | million per year isn't much more happy |
| 61s | than the person that makes fifty |
| 63s | thousand. In the last century, the |
| 65s | American income has tripled, even |
| 68s | factoring for inflation. We have bigger |
| 70s | houses, more cars, and fancier toys, but |
| 73s | surveys show that happiness has stayed |
| 75s | |
| 77s | Let's examine Maslow's famous hierarchy |
| 80s | of human needs. On the bottom we see |
| 83s | physiological needs, otherwise known as |
| 85s | food, shelter, breathing, sex, and sleep. |
| 90s | Above that we have safety, love, esteem, |
| 94s | and self-actualization. As we examine |
| 97s | this hierarchy, we can see that the |
| 99s | higher you go on the pyramid, the less |
| 102s | effect money has on the need. This is the |
| 105s | very reason why money has a diminishing |
| 108s | return on happiness. At a certain point, |
| 110s | |
| 113s | Bill Gates once said, "I understand |
| 115s | wanting to have millions, but once you |
| 118s | get beyond that, it's all the same |
| 120s | |
| 122s | Psychologists have discovered there are |
| 124s | essentially two types of happiness: |
| 126s | extrinsic and intrinsic. Extrinsic |
| 130s | focuses on money and material wealth, |
| 132s | image and status. Happiness derived from |
| 136s | these external sources result in a |
| 138s | short-lived dopamine spurt and a |
| 141s | never-ending state of wanting more. |
| 144s | Intrinsic happiness on the other hand is |
| 146s | derived from following a passion, |
| 148s | personal growth, making the world a |
| 151s | better place, or loving relationships |
| 154s | |
| 155s | Intrinsic happiness generates a |
| 158s | long-lasting joy from within and is a |
| 160s | feeling that money simply cannot buy. |
| 166s | For more interesting videos like this |
| 168s | |
