On Money, Happiness, and Hedonic Adaptation

1. On Money, Happiness, and Hedonic
Adaptation

2. 
“Many of us focus on changing the circumstances of
our lives in the misguided hope that those changes will
deliver happiness.
Research shows that trying to be happy by changing
our life situations ultimately will not work…because of
a very powerful force that psychologists call hedonic
adaptation.”
-Sonja Lyubomirsky, The How of Happiness
On Hedonic Adaptation

3. What causes
hedonic adaptation?
1) Rising Aspirations: the
stuff that made you
happy will only last for
a while, then you’ll
want the next shiny
thing.
2) Social Comparison: if
your friends and
neighbors get
something new, you’ll
feel bad about not
having the same thing.

4. 
What Really Makes Us Happy?
Sonja Lyubomirsky,
professor of psychology at
UC-Riverside, reviewed the
literature and came to a
surprising solution about
what determines our
happiness:
 50% from genetics
 10% from life
circumstances
 40% from intentional
activities

5. 
Another Way of Looking at It

6. 
Lyumbomirsky includes these broad categories:
 Practicing gratitude and positive thinking
 Investing in your relationships
 Learning coping strategies for tough times
 Living in the present
 Committing to meaningful goals
 Taking care of your body and soul
What are “Intentional Activities”?

7. These results play out in the real life arena
Examples from retirees, and an explanation from a “lifestyle guru”

8. 
How Retirees Feel
Merrill Lynch and Age
Wave asked retirees how
they felt. The results:
 Record high levels
feeling happy, content,
and relaxed.
 Record lows of anxiety.
This was true regardless
of income, race, gender,
location, or ethnicity!
Retirees were “time
affluent” – they could
spend their time on these
intentional activities!

9. A Tip From Mr. Money Mustache
This guy retired at 30: Here’s why he thinks we’re looking for happiness in all the
wrong places

10. 
This Is All We’ve Ever Needed

11. 
 Access to nature
 Warmth and shelter
 Food
 Companionship
He adds, “what you have here, especially if these
people are in a village with strong social ties, is all we
need for happiness. It’s the complete picture. This is
how our species has lived for 99% of its existence.”
Specifically, Humans Needs for
Happiness Include…

12. 
“Okay, I get your gist. Now
why does this matter?”
I’m glad you asked, keep reading
below!