The Path to Prosperity: How Changing My Beliefs About Money Led to a Happier Life

I am by no means rich, but my journey in understanding money and business has significantly impacted my financial and personal life. Here are the key principles I have learned over time:

Key Principles for Success

Break the Rules and Be Creative: Do not be confined by existing rules or traditions. Embrace innovation and creativity to find better solutions. Invest in Quality and Value: Spend your money on things that offer long-term value. Avoid wasting money on items that depreciate quickly or offer poor quality. Embrace Imperfection: While it is important to strive for excellence, perfection is not a requirement. Focus on adding as much value as you can to your investments and opportunities. Diversify Opportunities: Expand your horizons and explore different avenues. Diversification can help you prepare for unexpected outcomes and increase your chances of success. Actions Speak Louder Than Words: Any achievement, no matter how small, can be a powerful motivator. Demonstrate progress, accomplishments, and credibility through your actions. Focus on Customer Service: Quality customer service can take you a long way in this world. Providing excellent service is not only valuable for your business but for building positive personal relationships as well. Make Great Decisions: Always strive to make decisions that benefit you in the long run. Ensure that all transactions are fair and transparent. Do Your Research: Understand the systems and processes thoroughly to make well-informed decisions that minimize risk. Find Shortcuts: Invest in tools, resources, or methods that can help you save time and maximize your productivity.

Defining Rich

The belief that I can be rich has significantly shifted my perspective on life. This change of mindset has allowed me to be happier, make smarter financial decisions, and save more money. While I may not be considered 'rich' by traditional standards, the progress I have made in financial independence is remarkable.

A Tale of Two Friends: Kurt Vonnegut and Joseph Heller

Kurt Vonnegut once wrote an obituary/poem for his friend, the renowned author Joseph Heller, which highlights the myth surrounding wealth:

“True story Word of Honor: Joseph Heller, an important and funny writer now dead and I were at a party given by a billionaire on Shelter Island. I said ‘Joe, how does it make you feel to know that our host only yesterday may have made more money than your novel ‘Catch-22’ has earned in its entire history’ And Joe said ‘I’ve got something he can never have.’ And I said ‘What on earth could that be Joe’ And Joe said ‘The knowledge that I’ve got enough.’ Not bad! Rest in peace!”

So, How Much is Enough?

Recent research from Australia in 2021 examined the impact of household income on personal happiness. The study found that happiness correlates positively with household income until it reaches approximately 70,000 AUD. Beyond 70,000, the correlation between income and happiness disappears. Instead, factors such as physical and mental health, relationships, work satisfaction, and personal regrets become the main determinants of happiness.

This finding aligns with psychologist Abraham Maslow’s Hierarchy of Needs, where the basic needs must be met before higher-level needs such as self-actualization become significant. The significant difference between the average and median incomes in many societies indicates that a small percentage of people are becoming increasingly wealthy, while the majority are struggling to meet their basic needs.

Graphic from Wikimedia Commons of Abraham Maslow’s Hierarchy of Needs