If you get a high-ranking job with a big, prestigious firm, and a salary that’s many times the national norm, will that make you happy?
I had a job like that. Right after completing my MBA at UC Berkeley, I felt so proud of myself to land a job in management consulting with Andersen Consulting, which is now Accenture (no, not Arthur Andersen, the former parent company who was ruined by the Enron scandal). My post-MBA salary was almost five times higher than my pre-MBA salary, so I was elated. Not that I’d planned to become a management consultant when I went to business school. I either thought I’d go into international trade (I’d started off in a dual-degree program with an MA in Asian Studies that I ultimately dropped) or human resources (I’d come from the world of corporate training and still wanted to develop shiny, happy employees).
So, here’s the thing: Despite Accenture’s big brand name, the name dropping I would do of Fortune 500 clients, being able to tell my friends that I knew the CEO of such-and-such a company, earning elite flyer status with all the miles I accumulated on multiple airlines, and my super-smart colleagues…I was MISERABLE.
I had to hide how much I hated the long hours, because we were supposed to brag about those, like a badge of courage. I never told anyone that I thought the work was boring, and I promptly stopped telling people that I was eager to teach my clients how to do the kind of analysis I was doing for them, because I discovered that we actually profited when clients hired us back for multiple engagements. I was interested in building personal relationships, so I was disappointed when I was placed on a new project every two to three months, and just started to feel like a cog in a wheel. Maybe it was an important wheel.
When I’d consider quitting, friends would say, “But you make so much money! How can you even
think of leaving?” I kept telling myself, “You’re lucky to have a job like this! It was so competitive to get in! And you made it! Why would you leave? Keep up this work and you’re on track to make partner, and then you’ll be making MILLIONS!”
It wasn’t until after I collapsed, yes, literally fell backwards, right in front of clients during a meeting, totally spent from exhaustion and killer headaches, that I decided I really needed to leave that job. But oooh, that seductive money.
For me, I’ve discovered that living more simply has given me more freedom over how I manage my time. I love being a coach and setting my own hours. I only work Tuesday to Thursday, for example. In management consulting, I was always answering to the firm. If they wanted me in Detroit the next day, then I’d be packing my bags. (Luckily, I didn’t have to go to Detroit, but I did get a call on a Sunday night to be in Seattle the next day, and my raincoat was at the dry cleaners. How lucky — it didn’t rain that week!)
But that’s me. I’m wondering about you and others. So I started poking around, wondering…does money bring happiness?
Gretchen Rubin, who wrote the book The Happiness Project, says that a LACK of money CAN bring unhappiness. If you’re reading this, you’re probably doing well enough that you’re not living on the street. Rubin reminds us that if we’re not feeling good about money, we can count our blessings, get distracted doing something fun or interesting; find ways to assert control over your situation (even small things like cleaning out a closet); spending time with friends; or do something to help someone else.
In a recent blog post for the Huffington Post, she says that whether money will make you happen depends on a few things:
* What kind of person you are: What do you want to own? Do you have kids or dependent parents? Do you
have expensive hobbies? Do you like to travel? These circumstances and choices will impact your feelings around money.
* How you spend your money: Consider which of your purchases over the last year has brought you the most happiness. What if you make choices bearing in mind your happiness? Would you prefer to have a big-screen TV that lets you sit around and watch movies with friends, or would you get more happiness out of a membership at a gym, where you can meet people, get fit, and feel great? The gym membership might actually cost less and give you greater long-term satisfaction.
* How much money you have relative to the people around you, and relative to your own experience: We’re social creatures, prone to compare ourselves with others. While that’s not ideal, perhaps it’s hard to shift that. But if you can, be grateful for what you do have, as that will at least put you in a good mood, instead of focusing on what you don’t have.
I’m also fascinated with this study that Rubin cites. Let me ask it to you as a question:
Which do you prefer?
Choice one: A job where you’re paid $30,000 in Year 1 $40,000 in Year 2, and $50,000 in Year 3
OR
Choice two: A job that pays $60,000 in Year 1, then $50,000 in Year 2 and then $40,000 in Year 3?

Most people prefer Choice 1, with its raises. But, at the end of the three years, you would have earned only $120,000 instead of $150,000, with Choice 2, which actually offers $30,000 more in compensation! Interesting how caught up most of us are in getting more, more, more, especially in money, which is measurable. But happiness? More elusive.
Another tidbit to consider, from Rob Baedeker, writing for SFGate: If you live in the San Francisco Bay Area, the median income is $50,000 a year. Last year, Oracle CEO Larry Ellison made $84.5 million dollars. Larry Ellison’s compensation was 1690 times more than the average person in the Bay Area. Did he work that many times more than you? Obviously not! Is he that many times happier than you? Hmm…almost certainly not.
So what does income mean in terms of personal satisfaction?
Jean Chatzky, the financial editor for NBC’s “Today Show,” tells us that the amount of money required to “live comfortably” varies by region. She surveyed Americans’ attitudes about money and found that “once you’ve got enough to put food on the table, gas in the car, go out to movies occasionally and go on the occasional vacation, more money doesn’t make you happier.” The point of diminishing happiness returns she found was about $60,000 per household, annually.
Baedeker also cites research by called Justin Wolfers, associate professor of business and public policy at the University of Pennsylvania’s Wharton School of Business, who says “If you look for evidence that there’s some level above which money is unrelated to happiness, you simply can’t find it. Using American data, [from sources such as Gallup polls], it’s true that people earning $50,000 are happier than those earning $25,000, people earning $100,000 are happier than those earning $50,000, and people earning $200,000 are happier than those earning $100,000.”
He explains what he and his Wharton colleague, Betsy Stevenson have found: “It’s what we call a linear log relationship,” What does this mean? “At any point in the income scale, a 10 percent rise in income buys the same rise in happiness.”
And the Wharton professors have found this formula holds cross-nationally, too. “A 10 percent rise in income for someone in Burundi buys about the same change in happiness as a 10 percent rise for people in the U.S.,” says Wolfers. “That’s the sense in which we say there’s no evidence of satiation. There’s no evidence of it running out at income level whatsoever.”
So, maybe there’s no way to find long-term satisfaction with money. We’ll always want more. So, all the more reason to focus on maximizing your ROLE, your Return on Life Energy. Put your time and energy into what you love. Then, at least you control the interest you get back. You get to feel the appreciation, including self-appreciation.
Celebrating your infinite investments in yourself,
Susan
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