In our achievement-oriented, success-driven culture, the prevailing wisdom often seems to be that more is always better. Whether it’s a higher-paying job, a more lucrative business venture, or a fatter bank account, the implicit assumption is that increasing our wealth and material status is the surest path to personal fulfillment and a life well-lived.

And to be fair, there’s no denying that financial security and the ability to meet our basic needs can have a significant positive impact on our overall well-being. Numerous studies have shown that poverty and financial stress are major risk factors for a host of physical and mental health issues. So in that sense, striving to improve our financial standing could be considered a valid and worthwhile form of self-improvement.

However, as the old saying goes, “Money can’t buy happiness.” Scientific evidence increasingly suggests that once we’ve reached a certain baseline of financial comfort, the pursuit of ever-greater wealth often comes at the expense of our overall quality of life and personal satisfaction.

In other words, if you already live a comfortable life, then choosing to make more money but live a worse daily existence is, in many cases, a bad trade. And yet, we talk ourselves into it all the time. We take promotions that pay more but swallow our free time. We already have a successful business, but we break ourselves trying to make it even more successful.

There is too much focus on wealth and not enough focus on lifestyle.

In this article, we’ll explore the scientific research that sheds light on this dynamic and examine why prioritizing lifestyle over pure wealth accumulation may be the wiser path to true self-improvement and fulfillment. We’ll also offer practical strategies for striking a healthier balance between financial goals and overall well-being.

The Diminishing Returns of Wealth

One of the foundational studies that has shaped our understanding of the relationship between wealth and happiness is the landmark “Easterlin Paradox” research conducted by economist Richard Easterlin in the 1970s. Easterlin found that while there was a clear positive correlation between income and happiness at the individual level, this relationship did not hold true at the societal level¹.

In other words, as countries became wealthier over time, the average level of happiness within those countries did not increase proportionately. Easterlin’s work suggested that once basic needs are met, additional wealth does not necessarily translate to greater life satisfaction.

This concept of “diminishing returns” when it comes to the happiness-boosting effects of wealth has been further supported by a wealth of subsequent research. A 2010 study published in the Proceedings of the National Academy of Sciences², for example, found that the emotional well-being of individuals increased with income up to a threshold of around $75,000 per year in the United States. Beyond that point, further increases in income had little to no impact on day-to-day feelings of happiness and life satisfaction.

Similarly, a 2018 analysis revealed that the relationship between income and life evaluation (a person’s overall assessment of the quality of their life) flattened out at around $95,000 per year. In other words, once people earned a comfortable, middle-class income, additional wealth had minimal impact on how they felt about the quality of their lives³.

So what might explain this phenomenon? One key factor seems to be that as our basic needs are met and our financial security is established, our sources of happiness and fulfillment begin to shift away from purely material concerns. Instead, we start to place greater emphasis on factors like relationships, purpose, and overall lifestyle quality.

As Sonja Lyubomirsky, a professor of psychology at the University of California, Riverside, explains, “Once people’s basic needs are met, their happiness depends much more on the quality of their social relationships and their sense of meaning and purpose.”

This is further evidenced by research showing that factors like strong social connections, engaging in meaningful activities, and maintaining a healthy work-life balance tend to be more closely correlated with subjective well-being than pure wealth or income alone.

The Drive to Climb Higher

Suppose the diminishing returns of wealth are so well-established. Why do we so often find ourselves sacrificing our lifestyle and well-being in the pursuit of ever-greater financial gain? The answer, it seems, lies in a complex interplay of psychological, social, and cultural factors.

One key driver is the powerful pull of social comparison and status-seeking. As social creatures, we have a deep-seated tendency to evaluate our own worth and success in relation to those around us. In a society that places a premium on material wealth and outward displays of success, it can be easy to get caught up in the “rat race” of trying to climb the socioeconomic ladder, even if it comes at a personal cost.

A 2014 study published in the Journal of Personality and Social Psychology, for example, found that individuals who placed high importance on financial success tended to experience lower levels of life satisfaction and a weaker sense of meaning in their lives⁴. The researchers suggested that this was due in part to the constant striving and self-criticism that often accompanies the pursuit of status.

Similarly, a 2015 analysis by the Pew Research Center revealed that while upper-income Americans reported higher levels of overall life satisfaction compared to lower-income groups, they were also more likely to experience higher levels of stress, worry, and anger on a day-to-day basis. The authors posited that this might be due to the heightened pressure and demands that often come with occupying a higher socioeconomic position.

But the lure of status and wealth isn’t just an individual psychological phenomenon – it’s also deeply embedded in our cultural narratives and institutions. From a young age, we’re bombarded with messages that equate success with material prosperity, career advancement, and the accumulation of ever-greater wealth and possessions.

And this narrative is reinforced not just in the media and popular culture, but also in our education systems, workplaces, and broader societal structures. As a result, it can be incredibly difficult to resist the pressure to prioritize wealth and status over other aspects of a fulfilling life.

The Costs of Climbing Higher

Yet, the scientific evidence is clear: once we’ve reached a baseline of financial security, continuing to sacrifice our lifestyle and well-being in pursuit of ever-greater wealth often leads to diminishing returns. And in some cases, it can even be actively detrimental to our overall quality of life.

Take, for example, the issue of work-life balance. A growing body of research has shown that long work hours, excessive job demands, and an unhealthy blurring of the boundaries between work and personal life can have a significant negative impact on both physical and mental health.

A 2015 study published in the Lancet, for instance, found that employees who worked 55 hours or more per week had a 33% higher risk of stroke and a 13% higher risk of coronary heart disease compared to those who worked standard 35-40 hour weeks⁵.

Similarly, a 2015 analysis by the American Psychological Association revealed that workers who struggled to maintain a healthy work-life balance were more likely to report chronic stress, burnout, and other mental health issues. The researchers noted that these adverse outcomes were often exacerbated by a corporate culture that prioritized long hours and 24/7 availability over employee well-being.

And it’s not just our physical and mental health that can suffer—an excessive focus on wealth accumulation at the expense of lifestyle can also diminish our overall life satisfaction and sense of purpose.

The authors suggested that this was partly due to the fact that the pursuit of wealth can often distract us from engaging in more intrinsically rewarding and meaningful activities, such as fostering close relationships, pursuing personal growth, and contributing to our communities.

How to Strike a Healthier Balance

So, suppose the evidence is clear that prioritizing wealth over lifestyle can be detrimental to our overall well-being. How can we strike a healthier balance in our pursuit of self-improvement? Here are a few key strategies to consider:

1. Redefine success: Rather than equating success solely with wealth, status, and material possessions, take the time to reflect on what truly matters most to you in life. What brings you a deep sense of meaning and fulfillment? What kind of legacy do you want to leave behind? Anchoring your definition of success in these more profound, more intrinsic values can help shift your priorities away from a singular focus on financial gain.
2. Cultivate self-awareness: Engage in regular self-reflection to gain a clearer understanding of your personal needs, values, and boundaries. What aspects of your lifestyle and work-life balance currently serve you well, and which areas might need to be adjusted? Being attuned to your own emotional, physical, and psychological needs can help you make more informed choices about allocating your time and resources.
3. Prioritize work-life balance: Make a concerted effort to establish clear boundaries between your professional and personal life. This might mean setting limits on work hours, learning to delegate or outsource tasks, and deliberately carving out time for leisure, rest, and meaningful relationships. Remember that your health and well-being are assets, not liabilities, in pursuing a fulfilling life.
4. Seek purpose and meaning: Rather than chasing wealth as an end in itself, focus on aligning your work and financial goals with a more profound sense of purpose and contribution. What positive impact do you want to have on the world? How can you leverage your unique strengths and talents to make a difference, whether in your career, community, or personal life? Nurturing this sense of meaning can provide a powerful antidote to the empty pursuit of material gain.
5. Practice gratitude and appreciation: Take time each day to reflect on the aspects of your life that you’re already grateful for – your relationships, your health, your experiences, and the simple pleasures that bring you joy. Cultivating a mindset of abundance and appreciation can help shift your focus away from the constant striving for “more” and allow you to savor the richness of your current circumstances.
6. Build a supportive community: Surround yourself with people who share your values and priorities and who can provide mutual support, accountability, and inspiration. Whether it’s a close-knit group of friends, a like-minded professional network, or a community organization, these connections can help reinforce the importance of living a fulfilling lifestyle rather than simply chasing wealth and status.

By embracing these strategies, you can begin to shift the balance in your life away from a singular focus on wealth accumulation and towards a more holistic, fulfilling approach to self-improvement. It’s about recognizing that true success is not just about what you have but about how you live – and that sometimes, the wisest path forward is to resist the temptation to climb higher and instead focus on cultivating a lifestyle that brings you lasting joy and meaning.

As the ancient Greek philosopher Epicurus once said, “It is not the man who has too little, but the man who craves more, that is poor.” So, let us heed the lessons of science and wisdom and choose to invest our energy and resources in the things that truly matter most—our relationships, our health, our sense of purpose, and the richness of our daily lives.

References

1. Easterlin, R. A. (1974). Does economic growth improve the human lot? Some empirical evidence. Nations and households in economic growth, 89, 89-125.
   This landmark study by economist Richard Easterlin found that while there is a positive correlation between income and happiness at the individual level, this relationship does not hold true at the societal level. As countries became wealthier over time, the average level of happiness within those countries did not increase proportionately. ↩︎
2. Kahneman, D., & Deaton, A. (2010). High income improves evaluation of life but not emotional well-being. Proceedings of the National Academy of Sciences, 107(38), 16489-16493.
   This study found that the emotional well-being of individuals increased with income up to a threshold of around $75,000 per year in the United States. Beyond that point, further increases in income had little to no impact on day-to-day feelings of happiness and life satisfaction. ↩︎
3. Jebb, A. T., Tay, L., Diener, E., & Oishi, S. (2018). Happiness, income satiation and turning points around the world. Nature human behaviour, 2(1), 33-38.
   This analysis revealed that the relationship between income and life evaluation (a person’s overall assessment of the quality of their life) flattened out at around $95,000 per year. In other words, once people were earning a comfortable, middle-class income, additional wealth had minimal impact on how they felt about the quality of their lives. ↩︎
4. Dittmar, H., Bond, R., Hurst, M., & Kasser, T. (2014). The relationship between materialism and personal well-being: A meta-analysis. Journal of personality and social psychology, 107(5), 879.
   This meta-analysis found that individuals who placed a high importance on financial success and wealth accumulation tended to experience lower levels of life satisfaction and well-being over time, compared to those who prioritized more intrinsic values and goals. ↩︎
5. Kivimäki, M., Jokela, M., Nyberg, S. T., Singh-Manoux, A., Fransson, E. I., Alfredsson, L., … & Clays, E. (2015). Long working hours and risk of coronary heart disease and stroke: a systematic review and meta-analysis of published and unpublished data for 603 838 individuals. The Lancet, 386(10005), 1739-1746.
   This study found that employees who worked 55 hours or more per week had a 33% higher risk of stroke and a 13% higher risk of coronary heart disease, compared to those who worked standard 35-40 hour weeks. ↩︎