The Value of Money
It really won’t buy you happiness
The Wall Street Journal and NORC recently released a concerning poll. In line with numerous studies showing things like a decline in institutional trust and religiosity in America, the poll indicated that while people are valuing traditional ideals like patriotism, religion, community involvement, and having kids less than ever; they are valuing money more and more. In fact, Americans now say money is more important to them than any of these things.
In some ways, of course, this love of money is nothing new. Since the first currencies were devised—whether salt or sea shells or old roman coins—people have desperately sought them. Money is a means to material acquisition and some measure of security, guarding against things like disease and starvation and useful to acquiring the kinds of creature comforts that can make life easier.
But almost as soon as money was invented, religions and philosophic systems began warning followers to guard against its temptations and to view material wealth in its proper light. In the Hebrew scriptures, King Solomon warned that, “He who trusts in his riches will fall, but the righteous will flourish like the green leaf.” Christian scriptures go even further, stating “For the love of money is the root of all evil.” The Quran refers to wealth as both a blessing and a trial, warning against using others out of materialist greed. Buddhism holds that while money is neither intrinsically good or evil, it is ephemeral and will not result in happiness. And those legendary philosophers John, Paul, Ringo, and George reminded us, “You can’t buy me love.”
Despite these admonitions against the love or trust of money from every major moral philosophy in almost every society across the ages, we continue to place our hope in it. Why?
To some extent, it’s easy to understand. Unlike higher aspirations such as love, service, sacrifice, and community—money is tangible, measurable, and immediately valuable. We all need money: for housing, food, and basic necessities. And beyond our basic needs, it can provide us with comforts and curiosities that can make life easier and more comfortable. I enjoy a comfortable bed to sleep on, vacations with my family, the ability to work remotely via my laptop and portable microphone.
But perniciously, that very reasonable desire for some money can turn into an unhealthy worship. We begin to acquire not just necessities but luxuries through which we seek both status and fulfillment. We turn from valuing the very real (though fragile) security money can provide to idolizing it…imagining if we could only acquire a little more, we could alleviate our troubles altogether. We think the longing in our hearts can be filled by a new car or nice watch. Absent a deeper and more difficult reflection on what can actually help us flourish, we find easy to pursue.
But the pursuit of money never ends. It’s a hedonic treadmill. And no amount of money is ever enough. John D. Rockefeller, the wealthiest man in history, was once asked how much money was enough, and he answered (perhaps apocryphally), “Just a little bit more.”
That’s the way many of us live. In surveys, Americans of all wealth levels (except the poorest) consistently believe their peers have more money than them. And people regularly define rich not based on an objective criteria but in relation to (and higher) than what they have. Watch Tik Tok for 10 minutes and you will see people seeking happiness and fulfillment in overpriced clothes and sports cars. And the WSJ/NRC poll on what we value is concerning because it shows that Americans at least (and likely many others in the world) are increasingly counting on money to buy happiness.
But it won’t. The ancient wisdom is right. And the data is almost incontrovertible. In my own book, The HBR Guide to Crafting Your Purpose, I review a great deal of data showing that on a societal level, almost every country in the world is wealthier, healthier, and safer than at any other point in human history. And yet, rates of global unhappiness, anger, worry, depression, mental illness, and other negative signals are also rising. There is little correlation (except in the poorest countries) between a society’s GDP per capita and the feelings of purpose, happiness, and fulfillment its citizens feel, particularly at work. And this macro data ties with preexisting studies that show that while money does increase happiness to a point, generally each additional dollar results in less happiness until it eventually plateaus. More importantly, those who value money too much (ala the WSJ/NORC poll) end up being unhappier.
Basically, money is good to a point, so long as you don’t love it. And after a certain threshold of income it is less and less important to happiness. This makes sense. When I was born, my family was poor—we lived in a single-wide trailer in central Florida and often had less food than we needed. Now I and most of my peers are well off by global standards. And being poor is much harder than being financially secure. But being rich—particularly if you value money too much—doesn’t on its own make you happier or more fulfilled.
What really makes you happy? Relationships—particularly close family and friends. Serving others always pops as one of the top 2-3 ways in which to experience greater meaning. And a sense of purpose—the idea that your life is lived in pursuit of a higher calling—is central to mental, spiritual and emotional well-being.
That’s why data showing that so many Americans now value money more than patriotism, community service, faith, and family is so concerning. The former is a necessity, but valuing it leads people to be less secure, more anxious, and less happy. The latter are the things that make life worth living.
So how might we think about money in a way more likely to help us achieve the happiness, meaning, and flourishing we seek?
1. Consider a financial finish line. How much money is enough? Define that number now and consider establishing that as a “financial finish line”—the point at which any additional money in your life will go to serving others. Our definition of “enough” tends to evolve to be “a little more” as we become wealthier. Defining “enough” in advance may help us avoid such creeping standards and determine when to simply stop and be content.
2. Give generously and serve others. Service to others is one of the quickest routes to happiness. And we live in a world of great need. Pick a percentage and consider giving 5, 10, 15, or 20% of what you earn to others through charity. Where possible, pick organizations you can support with both your time and your treasure and where you can see that generosity play out in the lives of others in real time.
3. Always value love more. Relationships are more important than money. Don’t let finances destroy your relationships. Always prioritize your closest relationships—like spouses or children—over the acquisition of more and more wealth. And try not to let discussions or disputes over money damage your connection to those closest to you.
4. Once your needs are met, prioritize purpose over profit at work. Sometimes people have to take jobs to make ends meet. That is important, and a reality for billions of people around the world. But once your needs are met, consider prioritizing professional pursuits that are engaging, purposeful, personally engaging, and good for the world rather than ever-more lucrative. The wealth you accrue from your work stops mattering much after a while. The purpose you craft at work is one of the best routes to a flourishing and joyful life. If that purposeful work leads to material prosperity, all the better, but value those two things properly.
5. Use your money for experiences not stuff. Research shows that material things end up making us less rather than more happy in many cases. If you are going to spend big on something, make it an experience—preferably with others. These relational experiences are one of the few expenses that yield lasting fulfillment and joy.
6. Don’t conflate your value with your net worth. You are more than your job, car, house, or bank account. Every single human being is possessed of equal and immense dignity and worth. And that worth has zero to do with wealth. The sooner we learn to see ourselves and others in that light and to live that way the sooner we can be truly happy.
7. Practice enjoyment without attachment. Buddhism, Stoicism, Christianity, and many other traditions preach that material things are wonderful to enjoy, so long as we don’t become attached to or invested in them—something that resonates deeply with the research on money and happiness mentioned above. If you are well off, that can be a wonderful thing. But don’t value it too much. Don’t become attached.
Actor Jim Carrey recently stated beautifully, “I think everybody should get rich and famous and do everything they ever dreamed of so they can see that it's not the answer.”
Our society is experiencing a crisis of purpose right now. People are angrier, more anxious, and lonelier than at any time in recent history. And in that struggle many of us are reaching for money as a solution. But money is not the answer. It never has been. When we recover that ancient wisdom personally and believe it deeply enough to act on it, we will finally find the flourishing we seek.