The definition of “being rich” has changed in recent years. Money, while nice to have, doesn’t always bring pleasure.
This is the same conclusion that many entrepreneurs reach after years of hard work, and it’s becoming more apparent now that we’re finding ourselves in the age of the internet, where countless of determined people are trying to achieve happiness by selling digital products or services through social media.
In this blog post, you’ll learn how Prosper B. Wealth, the author of Silly Mr. Wealth: My Small Business Stories, My Mistakes, and the Lessons, defines happiness and how it has helped him reach inner peace and achieve success on his own terms. You can learn more about his work on his Instagram.
This Article Is a Guest Contribution
This article is a new installment in my Guest Post Series, where entrepreneurs of all sizes and from different backgrounds share insightful stories and valuable lessons.
MikevanderPoel.com is a hub for entrepreneurs who don’t just want to solve problems within their business, but are also looking to better their mindset so they can approach their craft with more courage, energy, and passion.
If you’d like to contribute to our community and want to share you story, then feel free to send me a message here.
My Path to Becoming an Entrepreneur
My late dad inspired me to be an entrepreneur. When I was young, he instilled a message within me that shaped my thinking to this day. It simply went, “What if it works?”
By approaching my life with a sense optimism, and believing in the fact that I will eventually make it as an entrepreneur, I opened myself up to learning many important lessons. Some of the best ones are…
- Take immediate action if you feel a sense of inspiration.
- Develop a thick skin and don’t let difficult times get to you.
- Explore new opportunities and don’t get stuck on one path.
The perhaps best lesson I learned over the years is that happiness is the new rich. Though we can accumulate riches through money and material items, which is something we can all have, one can only have satisfaction in life by having an abundance of happiness.
So, how can someone achieve happiness? And what does “happiness is the new rich” mean, anyway?
What Does “Happiness is the New Rich” Mean?
I see happiness as having the freedom to spend time with my loved ones, amongst other things.
My loved ones are with me at every step of the way and accompany me through the good times and the bad times. By having deep relationships with authentic people, I am able to feel happy and supported.
Money is not a part of that equation, because more money doesn’t actually increase happiness.
This is further shown in scientific research. A 2010 study published by Daniel Kahneman, author of Thinking, Fast and Slow, showed that high income doesn’t lead to emotional well-being. 1
Two systems drive the way we think and make choices, Daniel Kahneman explains: System One is fast, intuitive, and emotional; System Two is slower, more deliberative, and more logical. Examining how both systems function within the mind, Kahneman exposes the extraordinary capabilities as well as the biases of fast thinking and the pervasive influence of intuitive impressions on our thoughts and our choices.
Kahneman found that happiness flattens out at about $75,000 US dollars in annual income, which is approximately $95,000 US dollars today. Money leads to happiness, but only to a certain extent.
Chose to Be Happy, Not to Have More Money
People who live in rural areas are often happier than those who live in larger cities. Those who live near advanced infrastructure and a larger population of people, tend to make more money, but often also experience stress-induced illnesses.
There is a threshold at which money doesn’t add to emotional well-being, as the Kahneman study showed. Nobody can decide that threshold for you, so you must look at your current situation and decide for yourself:
- How much money do I need to cover my basic needs (food, sleep, shelter, etc.)?
- Do I need to support friends and family financially?
- What are my weekly or monthly bills?
- How much spending money do I need?
In the end, if you really think about it, you see that happiness is a personal decision. You can decide to feel pleasure and contentment right now, if you want to.
If happiness is the new rich, then your decision to be happy and to be diligent in your work would automatically attract wealth and good health. Irrespective of religious beliefs, economic class, or social tribe, I have seen this to be true.