$75,000 is the Key to Happiness?

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In 2010, it was scientifically verified that the true value of happiness is $75,000.

Researchers at Princeton determined that, on average, earning $75,000 was the peak of happiness in the United States. Earning more than this might make your life easier, might give you more material satisfaction, but, alas, it brought you no more happiness.

What does this mean to a new attorney? You are staring at anywhere from eighty thousand to over one hundred twenty thousand dollars of debt,  and these eggheads are telling you all you need is 75K to be happy. I call foul on that.

However, let’s delve a little deeper.The researchers were dealing with average Americans. What’s average? Good question. Does average only apply to those that have received two degrees, seven years of college education, and the debt associated with that? Not even close. However, even though there is no “average American,” the study is important in teaching us that more money does not always equal more happiness. So maybe we shouldn’t be concentrating on the $75,000 figure, but instead asking the question “where does earning more money even out?”

The law of diminishing returns might help in understanding the concept.

One diminishing return example shows that adding more employees will initially increase production. However, if the company continues to add employees, it will eventually reach of point where production is not increasing as much as expected. Eventually, the returns will keep increasing in smaller and smaller increments. In worse case examples, production actually falls off.

Happiness through the accumulation of money is similar. You want to work harder and harder to earn more and more, believing that more money will bring more happiness. The sad truth is that money will lead to more happiness only up to a point. After reaching that point, it is simply a Sisyphean effort. The law of diminishing returns controls. You’ll work harder and receive less satisfaction for your efforts. More money, but not nearly as much happiness as you expected.

Where do you draw the line between working harder and enjoying what you have?

Each person will answer that question differently. By engaging with a business coach for lawyers, you’ll put yourself on track to examine the question based on your values, and you’ll be held accountable in achieving the goals that you set for yourself. Even if one of those goals is just to be happier.

Contact me for a complementary 30 minute coaching session to explore this issue further.

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