You thought you’d be happy when your portfolio hit a certain threshold, but once it got there, suddenly it doesn’t feel like quite enough, so you press on, delaying retirement a little longer. Our job is to help our clients attain financial freedom - but how much is “enough?” When are you done? Like a treadmill set on incline, wealth accumulation can feel like a hill that never crests. Understanding the hedonic treadmill However, the concept itself was alluded two almost 200 years earlier by philosopher and writer Jean-Jacques Rousseau. These are worthy practices, but somewhat outside the scope of wealth management. The hedonic treadmill, therefore, is a theory positing that people repeatedly return to a baseline level of happiness, irrespective of what happens to them. There are many recommendations for how to accomplish this, ranging from the practice of mindfulness (appreciating the present moment, knowing it won’t last) to expressing gratitude for what you have. We spend our lives lusting after the next promotion, the next pay. Where does it end, and how do you (to quote George Jetson) “stop this crazy thing”? Whats going on here At issue is a psychological phenomenon known as the hedonic treadmill. Sometimes the good vibes will last for a little while, but once the degree has been framed, the new car smell has faded or the raise has been negotiated, you’re left wanting the next new thing to bring a hit of dopamine.
Hedonic adaptation refers to the idea that all people have a happiness “set point” they tend to return to following major life events or purchases.
0 kommentar(er)
