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January 18 - January 20, 2022
Close relationships—far more than money—are the single greatest influence on a happy life. In fact, personal relationships are better predictors of happiness, health, and longevity than social class, IQ, or even genetics.
Several years later, scientists found the answer: Roseto was phenomenally social. The residents took care of each other and stuck to the old Italian traditions of their ancestors. They lived in multigenerational homes. They were always socializing in each other’s homes, reportedly wandering in and out as if the community were one giant family. They also often cooked and celebrated together in large groups.
Their top five regrets were more relationship-based. They wished they had lived true to their values, instead of living lives that others expected of them. They wished they hadn’t worked so hard. They wished they had the courage to express their feelings. They wished they had stayed in touch with old friends. They wished they had let themselves be happier, instead of falling into boring routines.
The economics professor David Blanchflower says life satisfaction among adults tends to hit one high when we’re in our early twenties and another after we’ve passed fifty. He
But careers, student loans, marriage, children, divorce, bills, and retirement planning can make us feel like Atlas, carrying the world. By our late thirties and forties, insecurity is peaking. Our stresses are mounting.
he says people in their thirties and forties grind away on metaphorical treadmills. They try to boost their happiness with an increase in status or status-oriented stuff.
According to research published by the American Psychological Association, we gain more pleasure when we spend money on other people, compared to when we spend it on ourselves.
She says we’re happier when we can witness our generosity in action.
And grandparents who spend time caring for their grandchildren appear to experience similar benefits.
It doesn’t matter how high someone’s IQ is supposed to be. If they need their own life-threatening illness to recognize that one day they’re going to die, then that person is an idiot.”
Research suggests our insatiable quest for more stuff might be making us less happy. And the debts we acquire might compound the problem.
In terms of a car, ask yourself if you could afford to buy it outright. With a home, ask yourself if you could still afford the mortgage if the interest rate doubled or you were out of work for six months. If the answer to these questions is no, then you really can’t afford them.
“My research has found that most people who live in million-dollar homes are not millionaires. They may be high-income producers but, by trying to emulate glittering rich millionaires, they are living a treadmill existence.
Stanley also revealed that most millionaires don’t buy expensive wines or expensive watches or dine out at Michelin five-star restaurants, either. Some do, of course. But most wealthy people don’t.
New lawyers and doctors feel pressure to live like lawyers and doctors,
No matter our profession or income, we should think twice before following the consumption habits of our friends and neighbors.
Life is better when we appreciate what we have.
Research shows that practicing gratitude boosts well-being.
the good news appears to be that less is more. Those who journal about what they’re grateful for once a week report higher life satisfaction compared to those who journal daily.
Material acquisitions don’t boost life satisfaction unless they provide us with a novel experience or bring our loved ones together. Otherwise, the more materialistic we are, the less happy we become. We also know that we shouldn’t be envious of people with high incomes who exhibit expensive tastes. After all, they aren’t necessarily happier. And according to Thomas J. Stanley and Sarah Stanley Fallaw’s research, most people with a lot of expensive stuff don’t have a lot of wealth. In many cases, they swim in debt. And debts bum us out.
Prioritizing your spending means cutting back on things that don’t enhance your life. To figure out what those things are, start by tracking what you spend and earn.
I’m saying, track your income and expenses. Then cut costs on things that don’t enhance your life satisfaction.
Ask yourself if you could eliminate or cut back on specific expenses. Would it reduce your life satisfaction? If it would, don’t cut back. But if it wouldn’t, slash those costs.
But unless we’re endowed with a gold-plated pension or a trust fund, most of us require investments to fund our retirement.
When you own a global stock market index, you own thousands of publicly traded businesses from around the world. And when people use the products and services of those businesses, those companies earn profits. As an owner of those businesses (through that index fund or ETF) you will reap rewards.
Over time, however, if you own the broadest selection of stocks possible—which you can buy through an index fund—you’ll reap higher dividend payouts almost every year.
If you want to beat the vast majority of professional investors (after fees), build a portfolio of low-cost index funds. Ensure that it includes US stocks and international stocks, as well as a bond index fund for diversification and stability.
“If you become financially literate, you can choose a career you enjoy, even if it doesn’t pay a lot of money.” Index funds are part of that financial literacy.
research shows that most people who buy more expensive cars, upgrade their homes, or acquire more material goods don’t report feeling better about their lives. Hedonic adaptation sees to that, as we get used to what we own.
Smart investors don’t buy a single stock market index fund. Instead, they include exposure to global stocks and bonds.
