Business Building Corner

Have you ever stopped and pondered why you are working or building a business? Many times people are working so hard and such long hours daily that there’s no pause for thought. The obvious answer is that you are working to earn money, that is, to make a living. You may be supporting yourself or an entire family.

Going on the obvious premise that you are working for money, do you believe that money will ensure your happiness or the happiness of those you support? In June of 2014, Money magazine conducted an interview with economist Justin Wolfers, who conducted one of the broadest studies on the correlation between money and happiness. His findings may prove enlightening when you consider your own personal “why.”

The primary conclusion from Wolfers is not at all surprising. He says, “Wealthier people are happier than poor people. Wealthier countries are happier than poor countries. As countries get richer, they get happier.” Wolfers and fellow University of Michigan professor Betsey Stevenson studied comprehensive data, including the Gallup World Poll, of 155 countries covering 95 percent of the world’s population to come to what may seem to be a foregone conclusion.

Wolfers qualifies his findings by saying, “When I say rich people are happier than poor people, I don’t know if it’s the money that’s making them happy. When I say rich countries are happier than poor countries, I don’t know whether it’s the greater money that makes the average American happy or whether it’s the greater opportunities. Maybe it’s democracy, rule of law, or having functioning markets and political and social institutions.”

Psychologist Daniel Kahneman and economist Angus Deaton, also drawing on Gallup data, famously concluded that happiness doesn’t really increase above incomes of $75,000 a year. This conclusion is often cited by theorists and parallels the “Easterlin paradox” that is named after University of Southern California professor Richard Easterlin. The Easterlin paradox claims that rich people are happier than poor people and rich countries are happier than poor countries, but while happiness and income are correlated over short-term periods, the relationship disappears over the long run.

So what consistently provides a source of happiness if money doesn’t fulfill it over the long term? Business Insider asked some pundits and rich entrepreneurs what made them happy. Their answers are thought provoking as well as give insight into their “why.”

• When Snapchat creator Evan Spiegel turned down a $3 billion acquisition offer from Facebook, he was already wealthy and didn’t need more money. Instead, he chose to continue his pursuit of running a global technology company over amassing more money. For him, a bona fide “pursuit” brings more happiness than additional dollars.
• “Being rich makes life less risky,” says business mogul Josh Kerr. “If I want to invest in real estate, I can afford to lose the investment. I can have five kids and know that each of them will go to college. If I’m ever ill, I go to the best doctor.” Money in this case provides security, which is a component of happiness.
• Relationships matter more than large amounts of money, according to J.C. Hewitt. “I don’t believe that the more you have, the more money you need to maintain a certain level of happiness.”
• A more poignant look at the relationship between happiness and money was experienced by Mona Nomura when her successful mother was dying. Mona says one of her mother’s last journal entries included reflections on how unappreciative she was with the things in front of her, and finally “realizing happiness does not lie within superficial matters a little too late.”

Perhaps the pursuit of happiness is what often brings the most joy. In other words, the LPGN journey you are on could be the source of continual happiness, something money alone cannot guarantee. But the money an LPGN business can bring? It will never be too much, because you can give it away when you have more than enough for you and yours. There will always be many poor and/or unhealthy people who need your help. And isn’t one source of happiness your ability to help them? Is that your “why” or is it something else?