Why I am leaving San Diego

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Why Money Makes You Unhappy
By Jonah Lehrer July 21, 2010 | 5:51 pm | Categories: Frontal Cortex
Money is surprisingly bad at making us happy. Once we escape the trap of poverty, levels of wealth have an extremely modest impact on levels of happiness, especially in developed countries. Even worse, it appears that the richest nation in history – 21st century America – is slowly getting less pleased with life. (Or as the economists behind this recent analysis concluded: “In the United States, the [psychological] well-being of successive birth-cohorts has gradually fallen through time.”)

Needless to say, this data contradicts one of the central assumptions of modern society, which is that more money equals more pleasure. That’s why we work hard, fret about the stock market and save up for that expensive dinner/watch/phone/car/condo. We’ve been led to believe that dollars are delight in a fungible form.

But the statistical disconnect between money and happiness raises a fascinating question: Why doesn’t money make us happy? One intriguing answer comes from a new study by psychologists at the University of Liege, published in Psychological Science. The scientists explore the “experience-stretching hypothesis,” an idea first proposed by Daniel Gilbert. He explains “experience-stretching” with the following anecdote:

I’ve played the guitar for years, and I get very little pleasure from executing an endless repetition of three-chord blues. But when I first learned to play as a teenager, I would sit upstairs in my bedroom happily strumming those three chords until my parents banged on the ceiling…Doesn’t it seem reasonable to invoke the experience-stretching hypothesis and say that an experience that once brought me pleasure no longer does? A man who is given a drink of water after being lost in the Mojave Desert may at that moment rate his happiness as eight. A year later, the same drink might induce him to feel no better than a two.

What does experience-stretching have to do with money and happiness? The Liege psychologists propose that, because money allows us to enjoy the best things in life – we can stay at expensive hotels and eat exquisite sushi and buy the nicest gadgets – we actually decrease our ability to enjoy the mundane joys of everyday life. (Their list of such pleasures includes ”sunny days, cold beers, and chocolate bars”.) And since most of our joys are mundane – we can’t sleep at the Ritz every night – our ability to splurge actually backfires. We try to treat ourselves, but we end up spoiling ourselves.

The study itself is straightforward. The psychologists gathered 351 adult employees of the University of Liège, from custodial staff to senior administrators, for an online survey. (I should note that it remains unclear whether happiness and other aspects of well-being can be meaningfully measured with a multiple choice test. So caveats apply.) The scientists primed the subjects by showing them a stack of Euro bills before asking them a bunch of questions which attempted to capture their “savoring ability.” Here’s how the savoring test worked:

Participants are asked to imagine finishing an important task (contentment), spending a romantic weekend away (joy), or discovering an amazing waterfall while hiking (awe). Each scenario is followed by eight possible reactions, including the four savoring strategies referred to in the introduction (i.e., displaying positive emotions, staying present, anticipating or reminiscing about the event, and telling other people about the experience). Participants are required to select the response or responses that best characterize what their typical behavior in each situation would be, and receive 1 point for each savoring strategy selected.

Interestingly, the scientists found that people in the wealth condition – they’d been primed with all those Euros – had significantly lower savoring scores. This suggests that simply looking at money makes us less interested in relishing the minor pleasures of life. Furthermore, subjects who made more money in real life – the scientists asked all subjects for their monthly income – scored significantly lower on the savoring test. A subsequent experiment duplicated this effect among Canadian students, who spent less time savoring a chocolate bar after being shown a picture of Canadian dollars. The psychologists end on a bleak note:

Taken together, our findings provide evidence for the provocative notion that having access to the best things in life may actually undermine one’s ability to reap enjoyment from life’s small pleasures. Our research demonstrates that a simple reminder of wealth produces the same deleterious effects as actual wealth on an individual’s ability to savor, suggesting that perceived access to pleasurable experiences may be sufficient to impair everyday savoring. In other words, one need not actually visit the pyramids of Egypt or spend a week at the legendary Banff spas in Canada for one’s savoring ability to be impaired—simply knowing that these peak experiences are readily available may increase one’s tendency to take the small pleasures of daily life for granted.

This makes me think of the Amish. From a certain perspective, the Amish live without a lot of the stuff most of us consider essential. They don’t use cars, reject the Internet, avoid the mall, and prefer a quiet permanence to hefty bank accounts. The end result, however, is a happiness boom. When asked to rate their life satisfaction on a scale of 1 to 10, the Amish are as satisfied with their lives as members of the Forbes 400. There are, of course, many ways to explain the contentment of the Amish. (The community has strong ties, plenty of religious faith and stable families, all of which reliably correlate with high levels of well-being.) But I can’t help wonder if part of their happiness is related to experience-stretching. They don’t fret about getting the latest iPhone, or eating at the posh new restaurant, or buying the au courant handbag. The end result, perhaps, is that the Amish are better able to enjoy what really matters, which is all the stuff money can’t buy.

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[joec]

I sorta agree with njtosd. If folks move purely for cheaper housing cost, I think eventually, you’ll want to move back or move somewhere else. We moved to SD from the bay area for the cheaper housing and other reasons, but I wouldn’t be surprised if we moved back eventually after we save up some more moola and can afford it. I’m hoping it’s longer, but the wife will probably want to move sooner.

Especially if you don’t know a ton of people or have family already in SD. We’d eventually like to retire in some place like Hawaii, but that’s a ways off still.

Not sure about other folks who didn’t grow up here or been here forever, I’ll go start a survey. 🙂

I have some family who moved to TX and the wife really wants to move back since there’s no family out there…

In the end, housing cost is just money. If you can pay it, a lot of other issues are harder to solve/deal with.

[joec]

I sorta agree with njtosd. If folks move purely for cheaper housing cost, I think eventually, you’ll want to move back or move somewhere else. We moved to SD from the bay area for the cheaper housing and other reasons, but I wouldn’t be surprised if we moved back eventually after we save up some more moola and can afford it. I’m hoping it’s longer, but the wife will probably want to move sooner.

Especially if you don’t know a ton of people or have family already in SD. We’d eventually like to retire in some place like Hawaii, but that’s a ways off still.

Not sure about other folks who didn’t grow up here or been here forever, I’ll go start a survey. 🙂

I have some family who moved to TX and the wife really wants to move back since there’s no family out there…

In the end, housing cost is just money. If you can pay it, a lot of other issues are harder to solve/deal with.

[joec]

I sorta agree with njtosd. If folks move purely for cheaper housing cost, I think eventually, you’ll want to move back or move somewhere else. We moved to SD from the bay area for the cheaper housing and other reasons, but I wouldn’t be surprised if we moved back eventually after we save up some more moola and can afford it. I’m hoping it’s longer, but the wife will probably want to move sooner.

Especially if you don’t know a ton of people or have family already in SD. We’d eventually like to retire in some place like Hawaii, but that’s a ways off still.

Not sure about other folks who didn’t grow up here or been here forever, I’ll go start a survey. 🙂

I have some family who moved to TX and the wife really wants to move back since there’s no family out there…

In the end, housing cost is just money. If you can pay it, a lot of other issues are harder to solve/deal with.

[joec]

I sorta agree with njtosd. If folks move purely for cheaper housing cost, I think eventually, you’ll want to move back or move somewhere else. We moved to SD from the bay area for the cheaper housing and other reasons, but I wouldn’t be surprised if we moved back eventually after we save up some more moola and can afford it. I’m hoping it’s longer, but the wife will probably want to move sooner.

Especially if you don’t know a ton of people or have family already in SD. We’d eventually like to retire in some place like Hawaii, but that’s a ways off still.

Not sure about other folks who didn’t grow up here or been here forever, I’ll go start a survey. 🙂

I have some family who moved to TX and the wife really wants to move back since there’s no family out there…

In the end, housing cost is just money. If you can pay it, a lot of other issues are harder to solve/deal with.

[joec]

I sorta agree with njtosd. If folks move purely for cheaper housing cost, I think eventually, you’ll want to move back or move somewhere else. We moved to SD from the bay area for the cheaper housing and other reasons, but I wouldn’t be surprised if we moved back eventually after we save up some more moola and can afford it. I’m hoping it’s longer, but the wife will probably want to move sooner.

Especially if you don’t know a ton of people or have family already in SD. We’d eventually like to retire in some place like Hawaii, but that’s a ways off still.

Not sure about other folks who didn’t grow up here or been here forever, I’ll go start a survey. 🙂

I have some family who moved to TX and the wife really wants to move back since there’s no family out there…

In the end, housing cost is just money. If you can pay it, a lot of other issues are harder to solve/deal with.

[bob2007]

I’ve had the same experience as njtosd. Originally from Ohio. Moved back there, lasted 18 months. It was great to see the family on visits, snow (more like slush) and cold was fun and a novelty. Living and working there was different.

As with njtosd’s experience, most people grew up and live there, which I though would make things even better. Nice neighbors, family neighborhoods, etc. But in a lot of cases they are not as accepting of new people and its really hard to become a part of a group that has been together 20 years (since high school).

Cost savings were not even close to what I had calculated. Although housing was less, there were a lot of expenses I hadn’t considered: property tax was higher, trash pickup, utilities in winter, etc.

Living essentially indoors for 4-5 months a year was a major change from socal.

People are different, experiences are different, so yours may be completely different. But this story is a very common one.

PS. I would think texas is a better choice: loewer taxes, better weather, and one of the few growing economies with gov’t in place focused on making it better.

[bob2007]

I’ve had the same experience as njtosd. Originally from Ohio. Moved back there, lasted 18 months. It was great to see the family on visits, snow (more like slush) and cold was fun and a novelty. Living and working there was different.

As with njtosd’s experience, most people grew up and live there, which I though would make things even better. Nice neighbors, family neighborhoods, etc. But in a lot of cases they are not as accepting of new people and its really hard to become a part of a group that has been together 20 years (since high school).

Cost savings were not even close to what I had calculated. Although housing was less, there were a lot of expenses I hadn’t considered: property tax was higher, trash pickup, utilities in winter, etc.

Living essentially indoors for 4-5 months a year was a major change from socal.

People are different, experiences are different, so yours may be completely different. But this story is a very common one.

PS. I would think texas is a better choice: loewer taxes, better weather, and one of the few growing economies with gov’t in place focused on making it better.

[bob2007]

I’ve had the same experience as njtosd. Originally from Ohio. Moved back there, lasted 18 months. It was great to see the family on visits, snow (more like slush) and cold was fun and a novelty. Living and working there was different.

As with njtosd’s experience, most people grew up and live there, which I though would make things even better. Nice neighbors, family neighborhoods, etc. But in a lot of cases they are not as accepting of new people and its really hard to become a part of a group that has been together 20 years (since high school).

Cost savings were not even close to what I had calculated. Although housing was less, there were a lot of expenses I hadn’t considered: property tax was higher, trash pickup, utilities in winter, etc.

Living essentially indoors for 4-5 months a year was a major change from socal.

People are different, experiences are different, so yours may be completely different. But this story is a very common one.

PS. I would think texas is a better choice: loewer taxes, better weather, and one of the few growing economies with gov’t in place focused on making it better.

[bob2007]

I’ve had the same experience as njtosd. Originally from Ohio. Moved back there, lasted 18 months. It was great to see the family on visits, snow (more like slush) and cold was fun and a novelty. Living and working there was different.

As with njtosd’s experience, most people grew up and live there, which I though would make things even better. Nice neighbors, family neighborhoods, etc. But in a lot of cases they are not as accepting of new people and its really hard to become a part of a group that has been together 20 years (since high school).

Cost savings were not even close to what I had calculated. Although housing was less, there were a lot of expenses I hadn’t considered: property tax was higher, trash pickup, utilities in winter, etc.

Living essentially indoors for 4-5 months a year was a major change from socal.

People are different, experiences are different, so yours may be completely different. But this story is a very common one.

PS. I would think texas is a better choice: loewer taxes, better weather, and one of the few growing economies with gov’t in place focused on making it better.

[bob2007]

I’ve had the same experience as njtosd. Originally from Ohio. Moved back there, lasted 18 months. It was great to see the family on visits, snow (more like slush) and cold was fun and a novelty. Living and working there was different.

As with njtosd’s experience, most people grew up and live there, which I though would make things even better. Nice neighbors, family neighborhoods, etc. But in a lot of cases they are not as accepting of new people and its really hard to become a part of a group that has been together 20 years (since high school).

Cost savings were not even close to what I had calculated. Although housing was less, there were a lot of expenses I hadn’t considered: property tax was higher, trash pickup, utilities in winter, etc.

Living essentially indoors for 4-5 months a year was a major change from socal.

People are different, experiences are different, so yours may be completely different. But this story is a very common one.

PS. I would think texas is a better choice: loewer taxes, better weather, and one of the few growing economies with gov’t in place focused on making it better.

[carli]

This thread reminds me of a conversation I had years ago with one of the top guys at a very prominent executive search firm, who used to have to recruit people from all over the country for very senior positions with Fortune 500 companies. The conversation has always stuck with me.

He was trying to recruit for a key position on my team, and we were deciding if the person would be based on the east or west coast. He told me most people could be convinced to move to either coast for the right career opportunity. But, he told me that if we happened to find the perfect candidate in Minneapolis, he/she would probably be difficult to convince to leave their city. I thought he was joking at first, but he said that throughout his 20+ year career, when he found a perfect candidate for a position, if he/she was from Minneapolis and still living there, it didn’t matter how much compensation or career advancement or whatever other enticements were involved, people from Minneapolis were the most difficult ones to lure to another location. Probably wouldn’t apply to the whole state of Minnesota, but it was pretty interesting, especially because he was so emphatic and mentioned that it happened several times.

Both of us marveled at the idea, neither ever having lived in Minneapolis, but since that day, I’ve always been thinking I’d like to check it out a little more, tough winters and all.

[carli]

This thread reminds me of a conversation I had years ago with one of the top guys at a very prominent executive search firm, who used to have to recruit people from all over the country for very senior positions with Fortune 500 companies. The conversation has always stuck with me.

He was trying to recruit for a key position on my team, and we were deciding if the person would be based on the east or west coast. He told me most people could be convinced to move to either coast for the right career opportunity. But, he told me that if we happened to find the perfect candidate in Minneapolis, he/she would probably be difficult to convince to leave their city. I thought he was joking at first, but he said that throughout his 20+ year career, when he found a perfect candidate for a position, if he/she was from Minneapolis and still living there, it didn’t matter how much compensation or career advancement or whatever other enticements were involved, people from Minneapolis were the most difficult ones to lure to another location. Probably wouldn’t apply to the whole state of Minnesota, but it was pretty interesting, especially because he was so emphatic and mentioned that it happened several times.

Both of us marveled at the idea, neither ever having lived in Minneapolis, but since that day, I’ve always been thinking I’d like to check it out a little more, tough winters and all.

[carli]

This thread reminds me of a conversation I had years ago with one of the top guys at a very prominent executive search firm, who used to have to recruit people from all over the country for very senior positions with Fortune 500 companies. The conversation has always stuck with me.

He was trying to recruit for a key position on my team, and we were deciding if the person would be based on the east or west coast. He told me most people could be convinced to move to either coast for the right career opportunity. But, he told me that if we happened to find the perfect candidate in Minneapolis, he/she would probably be difficult to convince to leave their city. I thought he was joking at first, but he said that throughout his 20+ year career, when he found a perfect candidate for a position, if he/she was from Minneapolis and still living there, it didn’t matter how much compensation or career advancement or whatever other enticements were involved, people from Minneapolis were the most difficult ones to lure to another location. Probably wouldn’t apply to the whole state of Minnesota, but it was pretty interesting, especially because he was so emphatic and mentioned that it happened several times.

Both of us marveled at the idea, neither ever having lived in Minneapolis, but since that day, I’ve always been thinking I’d like to check it out a little more, tough winters and all.

[carli]

This thread reminds me of a conversation I had years ago with one of the top guys at a very prominent executive search firm, who used to have to recruit people from all over the country for very senior positions with Fortune 500 companies. The conversation has always stuck with me.

He was trying to recruit for a key position on my team, and we were deciding if the person would be based on the east or west coast. He told me most people could be convinced to move to either coast for the right career opportunity. But, he told me that if we happened to find the perfect candidate in Minneapolis, he/she would probably be difficult to convince to leave their city. I thought he was joking at first, but he said that throughout his 20+ year career, when he found a perfect candidate for a position, if he/she was from Minneapolis and still living there, it didn’t matter how much compensation or career advancement or whatever other enticements were involved, people from Minneapolis were the most difficult ones to lure to another location. Probably wouldn’t apply to the whole state of Minnesota, but it was pretty interesting, especially because he was so emphatic and mentioned that it happened several times.

Both of us marveled at the idea, neither ever having lived in Minneapolis, but since that day, I’ve always been thinking I’d like to check it out a little more, tough winters and all.

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