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Laura Rowley Money & Happiness

Laura Rowley, Money & Happiness

Be Careful What You Wish For

by Laura Rowley

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Posted on Thursday, June 4, 2009, 12:00AM

A number of years ago, psychologists Richard Ryan and Tim Kasser conducted a series of studies that found people who make the pursuit of money and materialism a top goal in life have lower well-being. They experienced higher anxiety, depressive symptoms, lower self-esteem, and more physical, behavioral, and relationship problems. They also scored lower on indicators testing for vitality (feeling alive and vigorous) and self-actualization. In studies done by Kasser and Ryan and others, the findings were similar across a variety of age groups, income levels, and countries.

Skeptics suggested that lower well-being was a function of the difficulty and stress involved in attaining those goals -- but once people achieved their aspirations, happiness would surely follow. Or, as the actor Johnny Depp told 'Vanity Fair' magazine this month, “Money doesn’t buy you happiness…but it buys you a big enough yacht to sail right up to it.”

A new study conducted by Ryan and two others followed graduating college students who set a range of goals at one- and two-year intervals. The goals were both extrinsic (money, status, personal image) and intrinsic (relationships, health, community involvement). The results confirmed the earlier work: People who sought riches and status -- even when they attained them -- were less satisfied with life than their peers. The research appears in the June issue of 'The Journal of Research in Personality'.

“Those who had the biggest increase in the amount of attainment of wealth, fame, and image actually showed no increase at all in well-being -- zero,” says Edward Deci, psychology professor at the University of Rochester, who co-authored the study with Ryan and Christopher Niemiec. “Even more startling, some of those people showed increases in ill-being, including depression and anxiety.”

Three Fundamental Needs

The researchers hypothesized that pursuing and attaining different goals would lead to different consequences depending on how they satisfy basic psychological needs -- part of a larger concept known as self-determination theory. Says Deci, “We believe there are three fundamental needs that have to be met to be psychologically healthy: relatedness -- to have relationships with other people and feel a sense of belonging and inclusion; to feel competent, like you can effectively manage in the world and have an impact on the world; and autonomy or self-initiation -- that what you do is in line with your basic interests and values, and you’re not doing it just because someone is pushing you around.”
 
The researchers measured three factors at year one and year two: the degree to which a subject attained their goals, the degree to which well-being rose or fell, and the degree to which he or she experienced satisfaction of basic psychological needs. “What we found," says Deci, "is when people had attained more of the extrinsic goals, they tended not to experience increases in basic needs satisfaction in autonomy, competence, and relatedness -- and that in turn predicted ill-being.”

I suggest to Deci that the exclusive pursuit of intrinsic goals is fine for someone in their early 20s -- but a bit idealistic for people who have mortgages to pay and (in my case) three college tuitions on the horizon. I love to write, but there have definitely been a few less-appealing assignments over the years in which money was the main attraction.

“It’s important to have enough money to live comfortably and pay the mortgage and educate your kids -- we all need to do that,” Deci replies. “It’s not necessarily the case that pursuing monetary goals is bad for you -- it’s when those goals get out of balance with other intrinsic goals. When it becomes really important to amass a lot of wealth -- and you put all your time and attention into that -- it crowds out the other goals. It’s about keeping in touch with what your true values are.”

Inviting Social Comparison

Aside from the crowding aspect, extrinsic goal-seeking tends to invite social comparison. “If you’re really focused on wealth, fame, and image as indicators of your worth, what you’re going to be doing is looking around at how you compare to other people because they may have more of that -- a fancier car or a bigger house,” Deci explains.

And the faster you acquire stuff to keep up with the Joneses, the faster you adapt to it, and the more you want new stuff -- also known as running on the “hedonic treadmill.” Deci says it goes back to the fact that important needs aren’t being met.  

“The pursuit of extrinsic goals has a lot to do with an underlying anxiety or insecurity that comes from a lack of deep satisfaction of basic psychological needs,” says Deci. “Superficial gratification comes from putting a good image out to the public and getting the recognition and feeling of belonging from wealth and a beautiful house and fancy cars. The substitute for having meaningful relationships is people who think you have a cool car. That puts us in a position where we are forever needing to get more and more things to get a sense of security in ourselves.”

So there is a chicken-and-egg aspect of this work: Anxious, insecure people tend to pursue extrinsic goals in the first place because they are anxious and insecure. But Deci says the research controls for the personalities of respondents because it measures change in the amount of goal attainment from year to year as well as change in well-being: “Looking at change in longitudinal way suggests we’re really talking about the attainment (of extrinsic goals) leading to the ill-being.” 

It’s worth noting that it’s not money itself that makes you miserable -- it’s pursuing it directly, instead of pursuing a passion that happens to make you rich. But even that can be problematic if it’s the only thing you pursue, says Deci: “It’s nice to be passionate about work, of course, but are you really having meaningful relationships, are you really developing as a person in ways that are meaningful for you? It’s trite to say, but when it gets to end of life and you’re reflecting back, what were the things that were deeply important? It’s easy to lose track of them over the short-term.”

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73 Comments

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  • Polski - Wednesday, June 10, 2009, 9:49PM ET  Report Abuse

    • Overall: 1/5

    At 76 I have seen more effort toward being slim, and making money, than not! We are not on desert islands where we can dictate our own destiny.

  • RobertM - Wednesday, June 10, 2009, 6:29PM ET  Report Abuse

    • Overall: 4/5

    Money does not bring happiness, but it is helpful for avoiding much unpleasantness in life.

  • Bruce - Tuesday, June 9, 2009, 6:09PM ET  Report Abuse

    • Overall: 5/5

    To Commentors: She was not addressing people with barely enough for basic needs. She was addressing people who want more, more, more, best best, best, instead of good enough.

  • Joe C - Tuesday, June 9, 2009, 8:53AM ET  Report Abuse

    • Overall: 3/5

    Ive thought about this concept alot and Im not convinced that its wrong to pursue money as a primary goal in life. I think it should be one of your primary goals. If it destroys your personal relationships, fair enough you're overdoing it, but quite honestly, if you're not looking to acquire and stockpile money, then you better be happy with very little because that's what you'll end up having.. I've yet to meet people who werent loopy that were happy being poor. I have pursued money my whole 46 year life and always felt a need to acquire more of it. It has motivated me. Its caused me to work when others relaxed, it's caused me to learn new skills so I could do more work or earn more for my time. All that work has more than once provided me with options when others had none, and it has ultimately allowes me to sleep easier at night knowing I have the money to survive difficulties that I know will someday come. The difficulties have not come for me and I wonder why and then I realize that the people who have the money like people like me, so they keep me around. They don't like people they can't get their fair share out of. If everyone lived this way, we wouldnt need these articles because we would all be well prepared for downturns and highly productive as a society. Instead, we have been living a debt fuelled life. Very few people chase money and then stop, they enjoy the chase, it's the chase that keeps them going and it's the willingness to work for it that keeps us all productive. Do what you like, do what you don't like - whatever makes you the most for your time and isn't illegal will ultimately lead you to security even if you can't feel secure about it. The anxiety keeps you on your toes. When you're not worried about bad things happening, you let your guard down and WHAM! you're smacked by reality. Cmon people - its a jungle out there, not a day spa. We're only different from animals because we wear suits, the laws of survival remain the same.

  • Yahoo! Finance User - Monday, June 8, 2009, 8:56PM ET  Report Abuse

    • Overall: 3/5

    She makes a lot of good points, but having started with nothing and working - I mean really working every step of the way to become a multi-millionaire by my mid forties - I'd rather have the money and enjoy the security and confidence of being financially independent. It gives you the ability to direct your attention and efforts to all kinds of other interests and causes. As far as happiness is concerned, I was happy when I had no money and I'm happy now with it. I also have come to the realization that time becomes more important than money with advancing age.

  • KK - Monday, June 8, 2009, 5:46PM ET  Report Abuse

    • Overall: 5/5

    I have worked very hard to be happy, and am proud to be able to say that I am happy. And by "work", I mean all that meaningful intrinsic work, not the kind of work that pays a salary. I do like my job but I live in the suburbs without a car, and have never noticed what my neighbors might think of that, much less care. I do think that becoming rich enough to afford a chauffeur to drive a car for me would make me a teensy bit happier in external circumstances. Plus, I wouldn't have to learn how to drive :-)

  • Yahoo! Finance User - Monday, June 8, 2009, 11:51AM ET  Report Abuse

    • Overall: 5/5

    It seems a lot of people missed the first half of the article where Laura provides analysis that financial comfort helps happiness along. The main point of the article was that people are not fulfilled when the SOLE goal in life is wealth attainment. If you've worked hard to accumulate enough weath to retire at 40, then your goal was to retire at 40. That's great! I interpreted this article as "create balance in your life". I work for money, but I enjoy what I do and provide the services I get paid for - for free for a non-profit. I enjoy what I do and I get paid for what I do. I have other hobbies and activities that I find fulfilling. My goal in life is to remain comfortable and secure while enjoying life and my OTHER goals. HR Dir

  • Baby boomer - Monday, June 8, 2009, 10:23AM ET  Report Abuse

    • Overall: 4/5

    Good article Laura. Right on the topic of Money & Happiness. One can use Maslow's Hierarchy of Needs to classify one's need because it is simple to understand. If you don't have food & shelter, you aren't going to worry about Esteem & Self-Actualization. But once you have the necessities of life under control ie you have enough money to survive and support your family, then you should consider giving back to society by volunteering and charitable work, and not just for recognition. Volunteer in your church and encourage your church to be active in the community; join Rotary which will help your community and most probably help you in business, join your union or professional society, volunteer for art & sports festival etc. Any of these will improve your mental health, increase your circle of friends and by working with volunteers, will actually help you in your job and improve your community. If you are just after that first million, then what? Give of yourself.

  • Yahoo! Finance User - Saturday, June 6, 2009, 10:41AM ET  Report Abuse

    • Overall: 4/5

    The three fundamental needs are food, clothing and shelter all of which cost money. My point is maybe it depends on why someone is pursuing a monetary goal that determines whether they will be happy when they attain it. I am 40yrs old and have just achieved a point where interest and dividends from my savings pays all my bills and a little extra for fun. My bills are small and I don't buy extravagant things, I am very happy. My goal was to not have to work and have my savings pay my bills not to show off and brag about how much money I have. I just bought my first new car(Pontiac Solstice GXP) now most people would assume that I bought this car to show off. I bought it for it's great handling characteristics because I like to drive. My point is that it is not necessarily the pursuit of material things that cause people to be unhappy it is the underlying motivation behind the pursuit. I could care less about keeping up with the Joneses because that was never my goal in the first place. Just some food for thought.

  • Yahoo! Finance User - Saturday, June 6, 2009, 9:12AM ET  Report Abuse

    • Overall: 2/5

    I was one that grew up poor and always prepared for a disaster and was never totally happy until my debt was gone and savings was high. Well, that happened for me last year and although it took me until I was 40 years old, I feel really happy now. I don't worry about recessions, I don't worry about high energy costs, I don't worry about my job, and I just finished my first 2 week vacation traveling across this great country. Money is Good! Debt is Bad! Poor is no Fun. I will never be rich but I don't care.

  • Parag - Friday, June 5, 2009, 2:35PM ET  Report Abuse

    • Overall: 4/5

    Very nice article Laura. I have been reading your articles and they are wonderful. This one was no exception. One suggestion though only to help and not to criticize. Try to include stories that people can relate to easily and ones that can illustrate your point. Overall great work. Keep it going.

  • Yahoo! Finance User - Friday, June 5, 2009, 1:10PM ET  Report Abuse

    • Overall: 1/5

    still think women belong in the kitchen.....barefoot and on birth control....smoking virginia slims

  • Jeff - Friday, June 5, 2009, 11:58AM ET  Report Abuse

    • Overall: 4/5

    Laura is right, and Christianity teaches this. In the words of Paul in Phillipans 4;12-13 I know what it is to be in need, and I know what it is to have plenty. I have learned the secret of being content in any and every situation, whether well fed or hungry, whether living in plenty or in want. I can do everything through him who gives me strength.

  • Fern - Friday, June 5, 2009, 11:02AM ET  Report Abuse

    • Overall: 2/5

    This society suffers tremendously from the "I'll be happy when" syndrome. Big picture, it's "I'll be happy when I get that promotion, raise, degree, car, spouse, record deal, mortgage paid off, etc." Peoples is never happy here in the U.S. Forward-thinking individuals who aren't subject to this mode of thinking (maybe in places like Europe, for example? How the eff should I know?), realize the idiocy of the rat race lifestyle that Americans continue to perpetuate. Now, the normals (who DIDN'T live light years beyond their means) are paying the price, no doubt. I'm asking myself, why did I purchase a modest house with 20% down? Why am I saving 15% of my income each month to watch it get sucked out my 401(hizzle) like a vacuum at the local car wash? Not sure, if you really want to know the truth. But I can tell you this; I'm working hard to fight against the "I'll be happy when" line of thinking. It's not easy though, because as Americans, it is deeply ingrained in our collective psyche. This country is going down in flames, feel me? So go to your local sports bar and numb it proper with a domesticated beer and some hot wings. Then think about how happy you'd be if you could just get ten grand more added to your annual salary. Think of all the stuff you could buy with that!. Think critically about something? Why would I want to do some sissypants thing such as that? Paul Blart: Mall Cop is out on blue ray this weekend. Chew on this: "The people who sit idly by and let their culture happen to them? The more I think about this, the more I realize that those people will end up fat, addicted, depressed, and broke, with a house full of junk they don't need." See: America.

  • Yahoo! Finance User - Friday, June 5, 2009, 8:36AM ET  Report Abuse

    • Overall: 3/5

    You could sort of liken this to a vacation... leading up to the trip it gets pretty stressful trying to tie up all of those loose ends, transportation hassles, etc. Once you're at your destination, after a day or two or three, you start to unwind and enjoy the experience more, etc. The contrasts between "pursuit" and "rest". That Johnny Depp happiness quote was also one of David Lee Roth's famous sayings.

  • Frank - Friday, June 5, 2009, 7:25AM ET  Report Abuse

    • Overall: 1/5

    Only a spolied housewife living a comfortable surburan existence and not worried about earning a regular paycheck because her husband takes care of her and her kids would say such stupidities. Try telling this BS to the average working stiff who is facing foreclosure, loss of job, and loss of health insurance. Oh, and the last time I checked, Bill Gates and Warren Buffett didn't seem depressed or deprived of self-esteem. Get real, Laura. What an idiot.

  • BradleyD - Friday, June 5, 2009, 7:06AM ET  Report Abuse

    • Overall: 5/5

    Absolutely terrific article. Very informative.

  • usa great - Friday, June 5, 2009, 4:16AM ET  Report Abuse

    • Overall: 4/5

    Very good thought

  • Yahoo! Finance User - Friday, June 5, 2009, 12:07AM ET  Report Abuse

    • Overall: 1/5

    IN his monthly commentary, Bill Gross cites Will Rogers, *who opined in the early 30s that he wasn’t as much concerned about the return on his money as the return of his money.* If that is the case then why invest, especially when the wealthy hold all the cards?

  • Yahoo! Finance User - Friday, June 5, 2009, 12:02AM ET  Report Abuse

    • Overall: 3/5

    Good article and valid points. I suppose most people who achieve financial success finally come to realize that money can't really buy happiness. It's nice to have, and at some level it's necessary. Still, it shouldn't be the focus of a person's existence. What a waste that would be. When I think back on my life and all the fun times I've had, I can't say that many of them were experienced simply because I had money. More important are friends, family, health, and a feeling of accomplishment. Anyway, it's too bad we live in a society that does it's best to turn people into consumption addicts who think they never have enough. Fancy cars, big houses, expensive clothes and gadgets. Nothing wrong with any of that, but it's silly to throw away your life just to accumulate the most toys on the block.

  • Mike - Thursday, June 4, 2009, 10:50PM ET  Report Abuse

    • Overall: 1/5

    This is the kind of stuff right out of Atlas Shrugged. Are the people who pursue money and wealth really unhappy because of it and/or because of the pursuit of it? I feel that such people (to include myself) aren't unhappy becuase of that, we are just the type of people who are never satisfied with what we attain. Is that greed?...NO - greed is malicious hoarding at the expense of others. What this unhappiness really is all about lies in our nature as drivers and achievers. And you know what Laura, we are the engine of the world. And as for the poster who thinks that this article hits below the belt, know this: I have a GREAT spouse, and AWESOME son, and maybe one real friend, and that sure is more than enough to keep me happy - especially becuase they love me for my passion to achieve FOR THEM. As for the need for "friends"...they are an overrated bastion of the socialites who have nothing but their congregation.

  • Yahoo! Finance User - Thursday, June 4, 2009, 7:41PM ET  Report Abuse

    • Overall: 2/5

    Alright, we get it Laura. For the past year you've been writing the same article...live on less, don't want so much...etc....etc...While that's interesting (the first time) with respect to the current economy, it's getting old and tiresome. Maybe you should stick to writing about the retired housewife whose husband is working himself to death!

  • Paul - Thursday, June 4, 2009, 7:38PM ET  Report Abuse

    • Overall: 3/5

    A fair article but the responses are interesting. Note that they are polarized either positive or negative. When we look at the article rating overall it is apparent that many positive raters left no comment yet many of the "1" ratings left scathing comments. It seems that many of the negative comments are, in "psychobabble", reaction formations. When a person feels that their core values have been challenged they respond aggressively. Money and extrinsic success centered people felt angered and obliged to fire back. If we looked at the lives of most of the shoot-from-the-hip responders to this bland article I fear that we would find that they are not an ebulliently happy lot. Face it money grubbers, none of you really want to be an important rich guy with no real friends so the article hits you below the belt. I propose: a 1-star rating indicates a socially isolated workaholic with little community involvement and a 5-star rating indicates a bit too much Kumbaya. A 3-star shows balance: perhaps even a few really wealthy guys who play meaningful roles in their communities and also have real friends. Like me.

  • Fillup - Thursday, June 4, 2009, 7:20PM ET  Report Abuse

    • Overall: 3/5

    You go and work and save 40 years to enjoy your Golden Years and you end up being a care giver to your parents and in-laws. You get a front row seat to see 4 people you know and love die by inches. Thats what the Golden Years include. So forget the golf clubs and the fishing tackle in your retirement dreams because you are going to be tested like nothing you been through in your working years.

  • Yahoo user - Thursday, June 4, 2009, 7:13PM ET  Report Abuse

    • Overall: 2/5

    Not bad, but wrong advice, wasteful research (something ancient cultures knew forever) in a wrong country. Isn't USA-mother of capitalism's only motto is MONEY MONEY MORE MONEY and Self Pleasure with that money eg. sex, drugs, alcohol, shopping being wasteful etc..... How many of you stop and give a homeless person your pocket change? Never seen that happen (besides wife and myself) in Southern Cali..

  • Yahoo! Finance User - Thursday, June 4, 2009, 6:11PM ET  Report Abuse

    • Overall: 1/5

    and how many people aspiring to have good relationships are divorced?.....over money?....and why do all the blondes have dark roots?......money?.....theres some homeless people that are happier than the people in your surveys but me like my money honey......money buys me my happiness so you must have surveyed dorks, dweebs and dingbats

  • Yahoo! Finance User - Thursday, June 4, 2009, 5:59PM ET  Report Abuse

    • Overall: 1/5

    thats boloney.......i like salami

  • Tom - Thursday, June 4, 2009, 4:53PM ET  Report Abuse

    • Overall: 5/5

    Laura's column is about "Money & Happiness" so this article fits in well. It reminds us to pursue Happiness too, not just Money. We all need to have a balance between intrinsic goals and extrinsic goals. Money is essential to support our basic living needs, beyond this intrinsic goals are more important for happiness.

  • Howard - Thursday, June 4, 2009, 4:51PM ET  Report Abuse

    • Overall: 3/5

    Pretty good article like most of her stuff, but no real new message here. Same old stuff.

  • ag - Thursday, June 4, 2009, 4:30PM ET  Report Abuse

    • Overall: 5/5

    This is a good article. I don't necessarily agree with any implications, but this is very interesting and a good read. Personally, I love to spend time with family, travel, go diving in exotic locations etc. I work real hard, have an awesome house, take fabulous and long vacations, but have beat up truck I bought used, don't buy many clothes, not into jewelry or othe expensive things and don't really care what people think about me other than family and a select group of friends. I very much see the goal of self-determination as being hugely fulfilling for myself. I can't bring myself to brown nose and pass up lucrative opportunities that would require brown nosing. I very much prefer to self direct and live with the consequences. Generally, I find that jobs and employment are overrated, but that some money is absolutely wonderful. Having a little bit of money set aside means that I don't have to be treated poorly.

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