how money affects our confidence relationships and happiness this video is the collaborative
effort between practical wisdom and downtown success and see more videos from downtown success
please follow the link in this video's description let's face it we live in a materialistic society
and as men we believe that living and expensive lifestyle and having more money will make us feel
more confident loved and happy when we're born our parents try to give us the best education so
that we're capable enough to compete after studies we work hard put extra hours in to make money as
much as we can to afford a certain lifestyle but this belief that more money will make us confident
loved and happy is far from true according to research conducted by Princeton University that
happiness and income are correlated but only up to $75,000 the emotional well-being of a person
rises as annual income increases up to about $75,000 but not further than that this makes
sense because people who make significantly less than $75,000 spend a lot of their time worrying
about basic necessities like having enough food to eat and covering the rent money can pretty easily
alleviate those kinds of stresses so boosting one's income up to around $75,000 can help but
as wealth Rises happiness levels remain the same in fact happiness might tend to decrease part of
the diminishing return effect can be explained by adaptations as wealth Rises people adjust or get
used to their new and better circumstances this increases their expectations and aspirations for
example a newly rich person moving to an upscale neighborhood will make the acquaintance of other
people who seem evil wealthier and that can diminish happiness he may be driven to increase
earnings by comparison to others or a desire for material gains wealthy people also could
face new problems tied to wealth such as children who become spoiled lazy or unappreciative now we
know that money can make us happier after our basic needs are met let's talk about how money
affects relationships according to research it's true that couples with extreme financial stress
tend to have lower levels of satisfaction in their relationships emotionally strained by
their financial struggle some people become more hostile or uncommunicative towards their spouses
many couples even point fingers at one another for their financial downfall this is not to say
however that low-income couples are doomed to have less successful relationships than rich people
rich people also face lower levels of satisfaction in their relationships due to various reasons one
of them is they are working a lot harder and they don't have as much time to spend with their spouse
now let's look at the social relationship CNN once wrote this interesting article on what happens to
people when they win the lottery people think that their life would turn out to be amazing if they
won a lottery but according to this article people who win lotteries spend all their money going into
debt and when they win the lottery all of their friends and acquaintances bug them for money which
in fact ruins their social relationships so they have more debt and worse friendships after they
win the lottery so whether you have money or you don't you will only have strong relationships if
you share experiences and value to their lives keep your promises have open communication and
be on the same page when it comes to financial matters now let's look at how money can affect
your confidence can money make a person more confident in order to answer this question we
first need to examine the way self-confidence works if you grew in a community that made you
believe that tall men are more attractive to women than short men then probably you will
feel more confident if you're a tall men now here is the interesting part if you were raised in an
isolated tribe that taught you that short men are better than tall men then you'll have less
confidence if you are a tall man it depends on your beliefs it's the same thing with money if
you were raised to believe that money makes a person more worthy then certainly you'll feel
more confident if you had more money unfortunately thanks to social media the world has become like
a small village that makes you think that money is everything and we'll start money shaming you
if you don't have enough of it this is why the majority of people right now believe that money
makes a person more worthy and as a result they'll feel more confident if they're able to get lots of
money the truth is confidence has very little to do with money there was research conducted
by a college in which all the students were asked what made them confident everyone gave a different
answer like going on a solo trip or pursuing a hobby but none of them said that money made
them more confident I'm not saying that money is pointless and one shouldn't work hard for money
there's nothing wrong in pursuing money if it's done for a healthy purpose the reefs why most
people are pursuing money is because they believe the materialistic adaptations they think that a
fancy house or an expensive car will make them feel confident loved and happy but the truth is
often when we buy a new car we regret our purchase because we feel we may have made the wrong choice
or that we have spent too extravagantly or something better will be available in the
future this feeling is called buyer's remorse the reason for this is that when we buy objects
they're easily interchangeable with other objects we get a brand new car but there's a new model out
within the next six months material things tend to eventually become outdated or broken we get an
initial boost in mood when we first buy them but it quickly dies off so the big question is how we
allocate our money after our basic needs are met one of the enemies of happiness is adaptation says
dr. Thomas Gilovich a psychology professor at Cornell University who's been studying
the question of money and happiness for over two decades Gilovich and other researchers have found
that experiences deliver more lasting happiness than things the experience of taking your family
on vacation will strengthen your family bond the experience of starting your business or a
solo mountain trekking will make you confident and at the end of the day happiness is always
a collection of good memories and no material possession will ever match the kind of memories
you get from experiences so the real purpose of money should be getting life experiences because
only experiences will make you feel confident loved and happy and will that value to your growth
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