Money is a powerful motivator, and there’s no denying its importance in providing stability, comfort, and freedom. But when we place too much focus on chasing wealth as our primary goal, we risk sacrificing happiness, well-being, and even a sense of purpose.
Research by Nobel laureates Daniel Kahneman and Angus Deaton shows that while money can enhance happiness up to a point—specifically around $75,000 annually in the U.S.—beyond that, additional income has diminishing returns on emotional well-being.
But why does chasing money make us miserable? And what can we focus on instead to lead a fulfilling and joyful life?
The Limitations of Money as a Source of Happiness
There’s a popular misconception that wealth directly correlates with happiness. Studies have shown that after reaching a certain income level—enough to meet basic needs and provide a comfortable lifestyle—additional wealth has little effect on our happiness.
This threshold, often referred to as the “income satiation point,” highlights a critical truth: money can solve material problems, but it doesn’t address emotional or existential ones. Beyond this point, the relentless pursuit of wealth often leads to unintended consequences that undermine our happiness:
1. Constant Comparison
Chasing wealth can lead to an endless cycle of comparison, where we measure ourselves against others’ financial successes. This phenomenon, known as the "hedonic treadmill," occurs because we quickly adapt to our circumstances and set higher benchmarks as soon as we achieve a goal. For example, you might feel thrilled to buy a new car, but soon you notice your colleague’s luxury car, and your satisfaction wanes.
Social media exacerbates this cycle by constantly showcasing curated highlights of others’ lives, making us feel like we’re always falling short—even if we’re objectively successful. Scrolling through Instagram, you might see influencers flaunting luxury vacations or tech billionaires unveiling their latest ventures. According to a study published in Computers in Human Behaviour, increased social media usage is strongly correlated with feelings of envy and reduced life satisfaction. This comparison-driven mindset not only diminishes gratitude for what we have but also steals the joy of our achievements by shifting the focus to what we lack.
And even if you were a millionaire, where would you stop? There will always be someone richer than you. If you’ve achieved your goal of earning $1 million, will the next step be $10 million, or even a billion? The constant need to "keep up" creates a never-ending chase for more, making it nearly impossible to ever feel truly content or successful.
2. Burnout and Sacrifice
The pursuit of wealth often comes at a steep cost. Long hours at work, skipped family dinners, missed vacations, and relentless deadlines can slowly erode your quality of life. At first, the sacrifices might seem worthwhile—working late nights to secure a promotion, taking on extra projects for a bonus, or neglecting hobbies to climb the corporate ladder. But over time, the constant grind takes its toll. Chronic stress from high-stakes jobs, lack of downtime, and the pressure to outperform can lead to both physical and emotional exhaustion.
Burnout is one of the most prevalent consequences of this lifestyle. It’s not just about feeling tired; it’s a state of emotional, physical, and mental exhaustion caused by prolonged stress and overwork. A 2019 report by Deloitte found that 77% of employees surveyed had experienced burnout at their current jobs, with the most common cause being the pressure to meet unrelenting financial or productivity goals. When your life revolves solely around external achievements, even rest can feel unproductive—leading to a cycle of guilt and further overwork.
Moreover, the sacrifices made in pursuit of wealth often rob people of the very rewards they’re striving for. What’s the point of earning a large pay check if you’re too exhausted to enjoy time with your family or too stressed to savour the experiences your money can buy?
As best-selling author Greg McKeown states in Essentialism, "If you don’t prioritise your life, someone else will." This is especially true in the workplace, where unchecked ambition can lead to a life dominated by the demands of others, leaving little room for personal fulfilment.
3. A Sense of Emptiness
Even when people achieve their financial goals, they often find themselves asking, “What now?” The promotion, the dream house, or the substantial savings account may initially feel rewarding, but the thrill is often fleeting. Without a deeper sense of why you’re pursuing success, the milestones you reach will feel hollow.
This emptiness stems from a fundamental truth: financial goals are inherently finite. Once achieved, they leave a void that material possessions can’t fill. For instance, someone who sets a goal to become a millionaire may feel momentary pride upon reaching it but will soon wonder what the next step is. Will it be to make $5 million or $10 million? The cycle continues because money alone doesn’t address the human need for purpose, connection, or self-actualisation.
This phenomenon is supported by the findings of the Harvard Study of Adult Development, which has followed participants for over 75 years to understand the factors contributing to a happy and fulfilling life. The study consistently found that meaningful relationships, not financial wealth, are the greatest predictors of long-term happiness. Participants who prioritised connection with family, friends, and their community reported higher levels of life satisfaction, even when their financial status varied widely. In contrast, those who pursued wealth at the expense of relationships often experienced loneliness and regret later in life.
Ultimately, fulfilment comes not from the zeros in your bank account but from the values and connections that make life rich in intangible ways. When you anchor your life in purpose, financial achievements become tools to enhance your journey rather than empty milestones that fail to deliver lasting happiness.
The Pursuit of Meaning Beyond Money
So, if chasing wealth doesn’t lead to more happiness, what does?
Research suggests that focusing on intrinsic motivations—those that come from within—can provide a more sustainable path to happiness and fulfilment.
Here’s how to cultivate a life beyond money:
- Identify Your Core Values: Start by asking yourself: What truly matters to me? Whether it’s family, creativity, learning, or making a difference, clarifying your values helps you focus on goals that bring genuine satisfaction. When you know what you stand for, you’re less likely to chase money at the expense of your well-being.
- Pursue Purposeful Work: Instead of focusing on high-paying jobs alone, consider what kind of work feels meaningful to you. Purposeful work doesn’t necessarily mean finding a dream job; it’s about engaging in activities that align with your values and make a positive impact. Studies have shown that people who feel their work has purpose experience higher levels of satisfaction and well-being.
- Foster Relationships and Connection: Strong relationships are one of the biggest predictors of happiness. Building genuine connections with family, friends, and colleagues provides emotional support, companionship, and joy—none of which money can buy. Prioritise time with loved ones, cultivate new friendships, and surround yourself with people who lift you up.
- Invest in Experiences, Not Just Things: Research suggests that experiences bring more lasting happiness than material purchases. While buying a new car or the latest gadget may provide a temporary boost, experiences like travel, learning new skills, or spending time in nature tend to create deeper, more lasting memories and satisfaction.
- Focus on Growth and Learning: Personal growth can be a powerful source of fulfilment. By setting learning goals or challenging yourself in new ways, you can cultivate a sense of progress and accomplishment. Unlike money, which is a static number, growth keeps you engaged and provides a lifelong journey of discovery.
Building a Life Beyond Money
A money-focused life might provide financial security, but it often falls short of delivering true happiness. Instead, by centring your life around meaningful work, strong relationships, and personal growth, you can experience a deeper and more enduring sense of fulfilment.
The shift from chasing money to cultivating meaning is not about rejecting wealth—it’s about recognising its limitations and balancing it with values that bring joy and purpose. As the philosopher Epicurus once said, “Wealth consists not in having great possessions, but in having few wants.”
By defining success on your own terms, you can create a life where happiness isn’t determined by the size of your bank account but by the depth of your experiences, connections, and inner growth.