Happiness=Love+$75,000+Achievement
By adminWhile browsing through previous articles by the Gallup Management Journal, I came across an interesting read regarding happiness, and what is required for happiness. Over the years, there have been many theories regarding motivation, happiness levels, and basic needs, such as the Self Determination Theory, or Maslow’s Hierarchy of Needs. Self Determination Theory believes that everyone has three basic needs: the need for autonomy, the need for relation/ belonging, and the need for competence. Maslow’s hierarchy of needs ranges from basic personal safety to self actualization. Happiness theorists have also introduce the concept of a so called ‘set point’. This is the belief that people will adapt to life events (psychologists tend to use the words ‘hedonic adaptation’), and one’s happiness level stays pretty constant throughout one’s lives.
According to two researchers; Angus Deaton and Daniel Kahneman from Princeton University, have uncover what really makes people happy.
What did they do?
Dr. Deaton and Dr. Kahneman analyze 450,000 response to the Gallup-Healthways Well Being Index (GHWBI). The survey is different from other well-being surveys due to the fact that it is a daily survey that asks about 1,000 US residents a variety of questions.
What did they find?
Happiness is the result of the fulfillment of two psychology states: emotional well being and life evaluation. Emotional well being is a shorter view of life satisfaction. It measures the emotional quality of everyday life. For example, if you had a good day, then your emotional wellbeing will be positive. Life evaluation is a long term view of one’s overall life. It is base on a backwards evaluation of achievements. Studies show that those who have accomplished the goals they have set, those who are emotionally fulfilled and finally secure, tend to rate highest in life evaluation. Research have also indicated a link between high satisfaction and more conventional goals. In other words, happiest life evaluation are from people who “went to college, got married, and have good jobs; other studies show that people who wanted to be performing articles when they were 18 but didn’t end up to be were generally very dissatisfied with their lives at age 45″ (Kahneman). As a way to sum this up, “having goals that you can meet is essential to life satisfaction. Setting goals that you’re not going to meet sets you up for failure.”
However, emotional happiness is dominantly a social result. “The very best thing that can happen to people is to spend time with other people they like,” says Dr. Kahneman. Studies have demonstrated the positive correlation between having a strong support network (via friends, family and marriage) and life satisfaction. “We find loneliness is a terrible thing…regardless of how rich you are” (Kahneman).
Speaking of riches, Dr. Deaton and Dr. Kahneman have found a third variable to the happiness formula. Just socializing with your friends, and achieving your goals aren’t enough. You also need $75,000. The psychologists believe this is because $75,000 is enough to live on and still enjoy emotionally rich social experiences. “No matter where you live, your emotional wellbeing is as good as it’s going to get at $75,000,” says Dr. Deaton, “and money’s not going to make it any better beyond that point. It’s like you hit some sort of ceiling, and you can’t get emotional wellbeing much higher just by having more money.”
What can we take away?
In summary, here is a checklist of the happiness formula.
1. Achievement of goals
2. Time with friends (have a strong support network)
3. $75,000
In a way, this can relate to the Self Determination Theory. Following this theory, life satisfaction results from the fulfillment of three basic needs. The need for competence, which relates to the achievement of one’s goals. The need to relate, which leads to the importance of spending time with friends. And the need for autonomy, and in this instance, the $75,000, the optimum amount so that one can enjoy social experiences and the freedom for leisure activities.
So, with the research in mind, which aspects of our lives are most important for us to invest in? In my opinion; leisure, career, and ultimately, our family & friends.
