The new wears off quickly and we move on to wanting something else which we think is going to make us happier and bring about more life satisfaction. How about the new house you just know is going to make you happy? You move into the brand spanking new 4,000 sq foot beauty to find out that your best friend just one upped you with a 5,500 sq ft lake front home. What happens when you finally get what you want? How long does that happiness last before you eventually return to normal? Not too long right? We buy the new truck and then realize our neighbor bought a nicer one even though you THOUGHT yours couldn’t be topped.
It seems like dreaming of the day that you get this “stuff” is going to make us so happy, right? Have you ever gotten excited over the thought of acquiring something such as a new car, boat, pair of shoes or a bigger house? In general, on average, increasing wealth (especially past the point where all your basic needs are met) doesn’t make people nearly as happy as they thought it would. Who wouldn’t be excited about winning the lottery, right?
HEDONIC SET POINT FULL
No, this doesn’t mean that being poor is a barrel full of monkeys or that making more money doesn’t make anyone happier in the long-term. As a person makes more money, expectations and desires rise in tandem, which results in no permanent gain in happiness. The hedonic treadmill is the tendency of a person to remain at a relatively stable level of happiness despite changes in fortune or the achievement of major goals. What exactly is the Hedonic Treadmill Theory? Not sure? Let’s explain what it is and then get into specifics. Heck, you may be going through it as we speak. You may not be too familiar with the hedonic treadmill as well but….I guarantee that you’ve experienced it (good and bad) at some point in your life events. I noticed that all of them have referenced this idea in past articles. I occasionally get ideas for topics to write on through other personal finance blogs for healthcare professionals such as the BIG 3: This wasn’t a phrase that I’d heard of before but have experienced numerous times in my life. Recently I came across the idea of the Hedonic Treadmill in the fantastic book, The Happiness Curve: Why Life Gets Better AFTER 50 by Jonathan Rauch.
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