{"id":1944,"date":"2020-09-01T15:04:13","date_gmt":"2020-09-01T15:04:13","guid":{"rendered":"https:\/\/www.truenorthwealth.com\/what-rich-people-know-that-everyone-else-is-missing\/"},"modified":"2022-04-29T20:41:56","modified_gmt":"2022-04-29T20:41:56","slug":"what-rich-people-know-that-everyone-else-is-missing","status":"publish","type":"post","link":"https:\/\/www.truenorthwealth.com\/what-rich-people-know-that-everyone-else-is-missing\/","title":{"rendered":"What \u201cRich\u201d People Know (That Some May Be Missing)"},"content":{"rendered":"

Circumstances do not account for most of our happiness. In fact, they barely affect it at all. Studies show that 50% of our happiness is genetic, 40% is our own <\/em>thoughts and choices, and only 10% comes from outside circumstances.*<\/p>\n

But somehow, we always seem to think that happiness is just right around the corner, waiting to greet us when we accomplish the next big thing. Perhaps this is why very few Americans actually consider themselves \u201crich\u201d \u2014 they refuse to believe they have truly arrived because they don\u2019t feel any happier. Additionally, as income increases, spending does too, so they never actually feel any richer, either.<\/p>\n

But what about the people who do feel \u201crich?\u201d What is their secret? Let\u2019s dig a little deeper into our spending habits and see where happiness actually comes from.<\/p>\n

The Hedonic Treadmill<\/strong><\/h2>\n

The Hedonic Treadmill theory states that humans will always return back to a baseline level of happiness, regardless of their circumstances. This means that, yes, certain things can boost your happiness for a little while. But, after the initial happiness burst fades, you will be just as happy as you were before.<\/p>\n

We have all experienced this phenomenon before, right? We think our lives will be better once we graduate from school, get that job, own that new car, buy that house\u2026 and for a while, those things do make us feel good. However, it doesn\u2019t take very long to feel just as we did before.<\/p>\n

What does this have to do with finances? <\/strong><\/h2>\n

When it comes to spending money, this theory implies that as we make more money, our expectations also increase, and there is no lasting increase in happiness.<\/p>\n

One more time- the more money we make, the more we desire. <\/em>When expectations and income rise in tandem, no one gets any more \u201crich,\u201d and no one gets any happier.<\/p>\n

The image of a treadmill makes perfect sense; you have to keep running and working to maintain what you think is a \u201cnecessary\u201d level of happiness. The more you get, the more you want, and the faster you will be running. Many, many Americans are stuck on this \u201ctreadmill,\u201d and getting off seems more like a fantasy than an actual reality.<\/p>\n

How to get off the treadmill and have a \u201crich\u201d life<\/strong><\/h2>\n

The good news is that there are ways to increase your baseline level of happiness that actually work (unlike just getting more stuff). This is the secret that truly \u201crich\u201d people understand: being rich isn\u2019t about money. It is about getting off the treadmill and creating a life of purpose and freedom. <\/em><\/p>\n

So, yes, you can lead a \u201crich\u201d life earning 50k a year or 500k a year. It is all about designing a life where you can do the things you love and have confidence in your financial future.<\/p>\n

1 \u2014 Prioritize the People and Things That You Actually Enjoy<\/strong><\/p>\n

People who live a \u201crich\u201d life spend their time and money on the most important things, like relationships and activities that give them purpose. What can you cut out of your life to make room for these things?<\/p>\n

2 \u2014\u00a0 Get Rid of the \u201cMore\u201d Mentality<\/strong><\/p>\n

The mentality of \u201cmore\u201d or \u201ckeeping up with the Jones\u2019\u201d is so ingrained into our culture that it can be hard to shake. Next time you get a raise, try increasing your monthly savings rather than buying that new car. You will find that if you never put new things on your treadmill, you won\u2019t miss them.<\/p>\n

3 \u2014\u00a0 Make Sure Your Money is Working for You<\/strong><\/p>\n

People who feel truly \u201crich\u201d are the ones that let their money work for them and not the other way around. Work with a top financial advisor<\/a> in Salt Lake City to create an investment plan that aligns with your risk tolerance, personal goals, and financial situation. Having your money work for you is an essential step in achieving a life of financial freedom.<\/p>\n

4 \u2014 Create a Financial Plan You Can Have Confidence In<\/strong><\/p>\n

Financial freedom starts with having a plan for your money. Sit down with a trusted financial planner and create a comprehensive wealth management plan that includes retirement, estate, insurance, and investment planning. When you are confident that you have a stable financial future, you will be confident in the way you are spending your money now<\/em>.<\/p>\n

So, instead of chasing more and more and more, start focusing on building a life of purpose. Meet with a financial planner and create a wealth management plan that will enable you to achieve financial freedom regardless of your financial state or stage in life. TrueNorth Wealth is one of the best wealth management firms<\/a> in Salt Lake City and the surrounding areas because we are with you every step of the way as you create your own \u201crich\u201d life.<\/p>\n

* https:\/\/positivepsychology.com\/hedonic-treadmill\/<\/a><\/p>\n

Written By: Joseph Griffin<\/p>\n

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