What Really Matters?

On Money, Happiness, and Hedonic Adaptation

“Many of us focus on changing the circumstances of our lives in the misguided hope that those changes will deliver happiness.

Research shows that trying to be happy by changing our life situations ultimately will not work…because of a very powerful force that psychologists call hedonic adaptation.”

-Sonja Lyubomirsky, The How of Happiness

On Hedonic Adaptation

What causes hedonic adaptation? 1) Rising Aspirations:

the stuff that made you happy will only last for a while, then you’ll want the next shiny thing.

2) Social Comparison: if your friends and neighbors get something new, you’ll feel bad about not having the same thing.

What Really Makes Us

Happy?Sonja Lyubomirsky, professor of psychology at UC-Riverside, reviewed the literature and came to a surprising solution about what determines our happiness: 50% from genetics 10% from life

circumstances 40% from intentional

activities

Another Way of Looking at It

Lyumbomirsky includes these broad categories: Practicing gratitude and positive thinking Investing in your relationships Learning coping strategies for tough times Living in the present Committing to meaningful goals Taking care of your body and soul

What are “Intentional Activities”?

These results play out in the real life arena

Examples from retirees, and an explanation from a “lifestyle guru”

How Retirees Feel

Merrill Lynch and Age Wave asked retirees how they felt. The results: Record high levels

feeling happy, content, and relaxed.

Record lows of anxiety.

This was true regardless of income, race, gender, location, or ethnicity!

Retirees were “time affluent” – they could spend their time on these intentional activities!

A Tip From Mr. Money MustacheThis guy retired at 30: Here’s why he thinks we’re looking for happiness in

all the wrong places

This Is All We’ve Ever Needed

Access to nature Warmth and shelter Food Companionship

He adds, “what you have here, especially if these people are in a village with strong social ties, is all we need for happiness. It’s the complete picture. This is how our species has lived for 99% of its existence.”

Specifically, Humans Needs for Happiness Include…

“Okay, I get your gist. Now why does this

matter?”

I’m glad you asked, keep reading below!