My dad won the lottery years ago. We lived in a state where you could not collect the money anonymously, so he created a trust with his initials, and the media listed the "trust" as the winner. It remained a family secret for many years and no one outside of the immediate family ever knew he won. He invested most of the money and has tripled it since then by keeping them in mutual and index funds. Always collect anonymously, if you can.
How much did he win? And how much did he invest? And how does the s&p and index funds pay out? Also, does the payout of the s&p vary monthly? Not wanting to be in ya business I’m just curious about the s&p payout
Why wining the lottery ruins people? They dont ruin anybody. There are over 50 states with lottery twice a week, plus power ball and mega money and about together with other forms of wining there are about 300-400 new millionaires weekly. That in 52 weeks even if some weeks no winners at least 15,000 new millionaires yearly. The joke is that there are few hundred of them that lose it all gets the attention, while the rest invest in real estate and other forms and survive and grow with it. It is society's assumption to think the worst since bad news/ things sell....
A lot of us would call this “forgetting where you came from.” Wanting to get out of a bad situation is very motivating, but not taking lessons from that bad situation can be catastrophic.
@@2pacisakilthemc21 Umm, so you haven't learned anything from you bad situations? In the words of Fabolous "Your failure's gonna teach you to be successful"
@@2pacisakilthemc21 i completely understand what u r saying. I hope u get where u want, while enjoying both the road and the finish line to your success.
It’s less about where they came from and more people who spent the majority of their lives poor don’t have much knowledge about savings, investing, or planning for the future. They get excited and overwhelmed and go on massive spending sprees like children and blow it all in a matter of a few years.
@@elinope4745 untrue. Happiness is genuinely an internal affair. Outside circumstances can make it hard or nearly impossible, sure, but that doesn’t mean that happiness is somehow from outside. As you grow up and experience life, you’ll find that outer things don’t bring happiness. Satisfaction? Maybe. Happiness? Nope.
@@elinope4745 untrue If you have a level of joy within, they can burn you but they can’t take away your internal joy. They can take away happiness. Your not excited about burning at the stake, getting toes cut off, hung on a cross, or so forth, but that doesn’t take away your internal joy. Happiness is temporary, internal joy is something you construct, and maintain so that the pressures of life doesn’t destroy you
it’s a REALLY GREAT video , but it really shows how LOVE is underrated , self love especially , love is where the infinite well joy is , and sadly most people don’t even know what love truly is , true friends can’t be bought but an entourage of ass kissers can be , buying your friends and family whatever they want is easy when you have the money to do it but building a family can’t be bought , putting time and energy into your family / tribe is priceless … a lot of people who have money don’t understand love , and don’t understand how to love people for who they are … instead wealthy people only want to be around other wealthy people OR dominate people who have less than them materially (it’s really sad) … the guy interviewing with Joe Rogan made a lot of strong points but in the end he’s lost and has very little love in his life he’s a spiritually poor man
This might just be Spencer's most important video. I really think people underestimate the power of knowing stuff like this. Once you master yourself, you can master the world.
For sure man. It really ties in with stoicism I believe. If your grateful for what you already have, it helps keep that hedonic level lower. This, creating larger deltas and more satisfaction whenever something good happens, and smaller deltas whenever something bad happens
It's why I, whenever I do take part, pick a lottery that instead of one prize €120 million and then drastically decreasing prizes...i like the ones where people can win 500k, or a million max. More winners, life changing still and a lot less people wanting things from you because they realize that after taxes, people would often use it to pay off their mortgage and then increase their disposable income. But it's also enough to move elsewhere. Over here in the Netherlands we also have one called De Postcode Loterij which is, as you could guess, base don your postal code / zip code. So you share the prize with whoever has tickets in that small area. This leads to messed up relations even more. When the prize is large, you get the ones who have and the ones don't have. It's also a sneaky way to have people play because fear of missing out.
Another way to think of winning the lottery is like playing a fun challenging video game. You get the satisfaction of gradual progression and leveling up, then suddenly you get a cheat code for "God Mode". Now you can crush anything in your path and have all the gold, loot, item, equipment, etc you want. It's fun af at first, then the game just becomes boring and unsatisfying. Imagine that happening in life, except you can't just quit the game (life) and go play another one. I mean, unless you count taking your own life, which is unfortunately what some do.....
Actually I have experienced this before playing Minecraft. Creative mode makes you feel like a god but it eventually gets old and survival instantly becomes vastly better because you can have highs and lows in it, dying to a zombie could be a low and finally crafting that diamond armour could be a high. I think emotions should fluctuate so we can really appreciate them, else if we all stood on one emotional plane we would be so bland.
Which would probably explain why many millionaires and billionaires become philanthropic after experiencing all the luxuries of life as happiness is usually experienced when "giving" so to speak.
Literally my life, from having no money to losing almost everything and now back to have money (all through business). I think going through shit literally teaches you how to adapt naturally. Thank you for letting us know the proper idea/term for it
it also ruins people because others will sue, blackmail, and even kill for money. there was a post on 4chan about it, you gotta get a lawyer in a large national firm (local people get word around, national lawyers dont care about your locality) and basically tell nobody else even if it's family. family becomes enemy when you have money.
I rarely comment, but Spencer, I just wanted to say this was definitely one of my favorite videos of yours I have watched. It really made me take a step back from my materialistic desires and reconsider what to pursue and how to sustainably be happy.
Why do people think that money buys happiness? It buys material things, like living in comfort, security, some financial freedom, and a better standard of living. Something like a lottery win ought to provide you a secure, very comfortable life - but not an extravagant life of luxury - for the rest of your life. Managing that money is your own responsibility. And happiness or contentment is your own responsibility too, whether you're just getting by or you're "wealthy" (which means different things to different people). We need to keep in mind that even low income people living in a developed country probably have a vastly superior living standard to poor people in developing countries. And in fact, we live in a better, safer, more comfortable, and less disease ridden world than even wealthy people living several hundred years ago.
Two problems I have run into as a lottery winner is that it sucks having money when you can’t tell people and it sucks having money when the people around you (close friends and family) don’t.
I've been teaching myself that I l9ve brisk teas drink them non stop but I've learned to ratiion them meaning try to stretch them for a long time water as Well, money should be rationed dosen't matter how much you have
@@mattstone9364 damn I never thought about it that way. Not to be too encroaching on your personal life but have you ever considered paying for someone in order for them to be able to accompany/experience something with you that they wouldn’t be able to afford to do with you?
Interesting video. One possible flaw with the premise of evaluating happiness levels after a windfall is the assumption that every person seeks or needs material things to be happy or happier. To me, the primary way life-changing money would support my happiness is the freedom it would buy me. While I don't have Buddhist-level separation from material pleasures, I wouldn't feel the compulsion to amass much that I don't already enjoy.
The fastest way to ruin a game is to enable cheat codes on it. So now when I win the lotto I'll be sure to set up a schedule so I constantly have a salary and lifestyle increase rather than getting it all at once. Basically pay some laywer a few thousand to set things up so I have a constant increase in "salary" over 20-50 years. Start with $100k per year and then scale that up at 50% per year. That way I am constantly comparing myself against who I was last year and it gives me something to look forward to, maybe even make it performance based so it's even more like a video game.
I've thought about that before, I don't think it's quite the same. I just think you need to spend for your means and put yourself in situations to grow. I inherited a lot of money but I still went to school and got a nice job. I also did things to avoid gold diggers and what not because that would affect your long term happiness. I actually wouldn't mind coming on this channel to talk about what to do when you get a big inheritance (or any inheritance) and what not do to.. People always in an emotional state of mind when they lose a parent or parents and that's when people take advantage of them. Hiring a lawyer is a smart move though, I immediately hired an estate attorney and fiduciaries. You would be shocked at how many idiot friends were giving me investment advice and are weirded out by me paying people to invest for me.. But I see consistent returns and they always lose money taking big risks. So basically never listen to friends who aren't financial advisors but I think most people on this channel know that.
Alternatively, take all the money upfront, invest wisely to maintain steady income, and then invest back into your community. Use your excess money to do something positive for the world, a long term project where you can feel that you are helping others who need it. That's what life is about, and money gives you the option to do it.
A wise man once said, What do you do if you have everything you've ever wanted and still wasn't happy? Made me realize that we need highs and lows. Can't always be highs because it becomes normal and you learn to stop appreciating it. Which it turn, takes away the happiness from it.
Some people live well with their winnings, but I truly enjoyed this video. I often think about this and feel that I would have to keep quiet as much as possible and move strategically because money brings out the worst in people, especially family! My grandfather left me, in his will, a small inheritance for college, and my four uncles sued me at 16yrs old, claiming that I was only a grandchild (not his child) and the other grandchildren didn't get anything. At the time, I was the only grandchild that went off to college. Talk about tension in the family!
Had a similar experience, grandfather left literally everything in his estate and will to me and solely me and quite literally no one else in the family. Felt shitty since it was his way of using me to basically say fuck you to the rest of the family.
The Hedonic treadmill is so damn true. Dating, cars, etc…. Every so often I “reset” and force myself in less than ideal living situations so I don’t let lifestyle creep happen.
I figured this out awhile back on my own like a lot of things in life. Thanks for the word of affirmation man. I knew I was on the right track keeping humble.
This is one of the most fascinating video I’ve ever see. I’m 37 and haven’t experienced an epiphany in a long time. This one did it for me, and I hope this video finds its way to everyone and it makes as much sense to them as it did to me. Thank you spencer
This is why my satisfaction, my gratitude, comes from being worth a shit. Regardless of outcome, that I do the best I can with what I've got, I am grateful just to be a part of life.
When I'm asked how am I feeling, I reply I'm ok....and ppl reply..just ok....& I'm like my ok is equal to great...because I'm at peace/ ease / stress free....regardless of what news I may have gotten or stress I'm under....I know the feeling/ situation (time frame) is temporary & I'll b right back to "normal" self...
Love the psychological take on this subject, man. Would be interested in seeing more vids exploring the hedonic adaption and it's relationship with money
Thank you so much for this video. This really put a lot of things in perspective for me especially since I used to be a strong believer that money does but happiness. I used to think about how rich and famous people would not act so estatic about the lavish gifts they receive but it all makes sense. When they continuously receive gifts that make their hedonic level reach 10 it becomes a normal feeling which the number diminishes overtime and they would have to continue to seek something overly extravagant to reach that level 10. I feel like the concept of hedonic set point could even be applied to dating and marriage because during the beginning of a relationship couples often have a higher level of happiness but overtime that level of happiness definitely decreases.
@@magnusred2945 Spenser said happiness is a short term state so wouldn't money allow you to feel happy more often rather than be happy which sounds constant?
@@EddieOdora I know he mentions it as short term happiness but I would refer to it as pleasure (basically when dopamine is released) as apposed to long term happiness (release of serotonin). So yes with money it would allow you the opportunity to experience more short term pleasure eventually your body reaches a point of homeostasis and those short term moments of "happiness" stop feeling as good as they first did. Far too many people confuse short term pleasure (mostly experienced alone and inspire taking) with happiness (which is generally shared and inspires giving)
Look at your own life from the perspective of someone living in Africa without access to basic necessities or someone living 100 years ago working in hazardous conditions 12 hours 6 days a week. They would probably wonder how you could ever feel unhappy.
Wow it’s like I’m sitting here so unhappy today. Gambled off 2k last night.. had fun doing it but depressed and pissed off the next day. This video helped me feel better today. Thank you Spencer. It’s okay to feel all emotions just not one for too long.
Looking at how people who go from 0 to 100 real quick, I’m curious how the successful (say, athletes who don’t go broke) keep their money long term and the thought process behind that. Would like a video on that.
If I win the lottery, you wouldn't even know I'm rich. I'd just fix my parents house up and live cheaply and comfortably knowing I'd be financially secure. I'd even get financial advisors.
That last part is so true 💯 as a person who’s has had it, lost, and working to get my wealth back up. I’d rather be rich and miserable than broke and happy. But it took me loosing my lifestyle and self destructing to see that true balance and long term happiness especially when you get it out the mud.
Personally I find the real key is happiness through meaningful connections to others. There is definitely a cut-off at the lowest financial rungs of society where a bit more money definitely helps, but I have known people who have had just enough to get by who had rich, happy, fulfilling lives, whereas I've know quite wealthy people who were lonely miserable saps. The kind of happiness you get through friendships, kindness, etc... seems to transcend the "zeroing" out of the happiness graph.
This is one of the best RUclips videos I've ever watched on this channel. The law or principle of hedonic adaption is so dynamic to so many scenarios. Which were covered in this video
This is an amazing video that I want to come back and rewatch many times. It has a clear message and an easy way to understand this situation. Love it.
@Spencer Cornelia excellent video. most middle-class and working class people just aren't mentally equipped to deal with such newfound riches of a significant amount. if i were to come into a large amount (in excess of $million), i would: 1-change my phone number immediately 2-get lawyered up, and find a good accountant/taxman 2-if it's $3m or more, i quit my job. if it's less, i'll stay at my job, and work on developing a side income.. (i make $65k CAD/yr which is $50k USD/yr, and i actually like my job) 3-pay off my mortgage, outstanding debts, credit card 4-give some back to those people who altruistically helped me around the way 5-stand my ground, say no to the vultures/gold diggers 6-depending on how big the win, i may have to move from my residence for at least a year cheers from southern ontario 🍁
So much of it spins out from the disconnect between the person and the labor. Everyone is trained to work for money; if you find work that brings you meaning, extra funds will only accelerate what you are doing and allow you to get better. But if you just chase hedonic stuff, of course, you gonna be fed up after a while
That video really summed everything up. I feel I don’t desire wealth that much anymore because capping at pleasure seems to be terrifying. I rather be at a fair middle.
This doesn’t account for the ability of money to minimize pain though. Reaching a point where you don’t have to worry about paying for food, shelter, or emergencies will greatly increase your overall well being and personal relationships.
Not so much. Self control and discipline are imperative. If you obtain riches and/or wealth to pay for the things you mention you’ll stress yourself out trying to keep that same lifestyle. Practicing gratitude for the things one is blessed with is very powerful, every day is a new grind. Stay hungry, stay humble.
Temporarily. I remember being broke and desperate, and now even when I don't have money in my account it doesn't feel the same. I've gotten used to having plenty and barely remember the desperation. That's just how brains work.
This is one of my favorites videos you did. I've heard this a lot in the self-help niche on RUclips. That being said, your application of this concept is refreshing and new. It's nice when you aren't trying to sell me something & I'm actually able to use this information. (Not saying you Spencer sell anything at all. Imagine if Tai Lopez did the same topic as you and used the same evidence, he would have a link to his true happiness course.)
The ay Spencer incorporates the " THREE OF EMM" in almost every video since the original is something i find so hilarious, i swear everytime i just burst out laughing, he's so smooth with it. thanks for another banger Spencer
totally agree. i experienced a lot of virality with my business, my following grew like 5x on ig and tiktok, made over 10k plus in revenue, etc etc. however, i find i’m just as stressed or even far more stressed these days than i was when i was just a college student figuring it out. i used to dream about times like this, now i’m here and i’m just stressed tryna figure out how to make it to a larger following, more visibility, more profits, etc. it’s crazy. i literally used to dream and fantasize about times like this. my lows now are literally my old highs. it’s so insane.
Great video Spencer. I'm not an expert but I think there is a similar concept in Buddhism that basically states that you should not let extreme emotions (joy or pain) affect you, as they throw you off your balance. You need to treat joy the same way as you would a negative experience and maintain a zen state, or else, as you stated, you will feel let down by reality.
Totally agree. The only things that make me feel good: socializing, rest, exercise, healthy food, friends, work (in moderation). If I have these, I can can raise my baseline. But sex, money, expensive events-they’re fun, sure, but not life changing.
Thank you for this. Reminder that everything is relative. I always tell my single friends that they're better off making 2k a month with 300 in bills than I am making 10k a month with 8k in bills.
I saw Spencer’s last video on this topic, and it blew my mind, and taught me how to understand this. Now it’s normal, and so cool to see another video from a different perspective
really really loved this video man, seriously one of a kind content creator. You know your audience very well, exactly what I think a lot of us enjoyed to learn.
People get miserable after making money because they think money will MAKE them happy, they're relying on things outside themselves to effect their emotions. 99.9% of people think this way about everything (relationships, vacations, concerts, alcohol etc.) And when the feeling is fleeting they get disappointed. True happiness comes from one's self or through the PROCESS of a worthwhile goal, not through attainment.
Yes to all of this! I was thinking this exact thing while watching the video. If you're seeking happiness outside of God and yourself though wealth and material accumulation you'll never be happy.
It varies a lot imo. I think it all comes down to how responsible you are with money. Same way with the videos you do on athletes going broke. If someone that can manage money well wins the lotto I highly doubt they will ever go broke.
This is very interesting, especially the timing of this as I am personally expending a windfall shortly, it gave me another perspective on things. Thank you, Spencer.
I hear happiness and sadness, but I'm not hearing comfortable. Maybe I'm different, but to me, a large boost in income would mean clearing my student debt and buying a house with a backyard. Not a mansion or fast cars. Maybe 4 or 5 bedroom house in the suburbs. I don't understand the desire for the most a lot the time instead of some of the time.
Winning the lottery was the worst thing to ever happen to me. Seriously. Ten years later I'm broke again with 5 kids from 5 different women, loads of debt, drug and gambling addiction. Wish I hadn't won.
A friend won $6.6 million as a young 20 something back in the mid 1980's. He ended up quitting his job at a Supermarket. He didn't work again during the 20 years that he received a check from the State Lottery. He didn't invest the money so that he would have had money for a lifetime. He did buy a house on the hill bought a couple nice cars, and spent the money on other things. A friend helped him try and get a job. The problem was he didn't know how to put a resume together, had no saleable skills, didn't know how to operate a computer or work any of the basic computer programs used in business. He ended up getting a job at a retail location and living in a small apartment.
One thing I've learned over the years is pursuing a goal is better than pursuing happiness. Happiness is fleeting, goals are endless. If you don't have something you are pushing towards, you are pushing towards nothing and are aimless. Challenging yourself and intentionally making yourself uncomfortable from working out and also mentally pushing yourself will make you feel comfortable at baseline, because of the amount of discomfort you are put under regularly.
I am awaiting a settlement that will definitely change my family and I’s life. Thanks for this! I wont get greedy. Gonna build generational wealth. I have to with how each year gets tougher and more expensive
I did a video about the Hedonic Treadmill. I didn’t articulate it nearly as well as Spencer. Once I understood the concept, it totally changed my life.
Spencer I've learned a LOT from your videos... always entertaining. But... this is next level AWESOME MAN!!! This is DRUG ADDICTION as well... always chasing the feeling from the 1st high... but... its NEVER the same. So you do more and more at any cost... any negative, and doing more and more kills you before you EVER reach that feeling again. Gold man... this is really good info man.
Discipline is what’s needed to sustain being satisfied when you have a lot of money. If you’ve worked for a lot of money, you’ve most likely learned discipline and are more likely to keep your financial gains. If you suddenly win a bunch of money, hire someone who will enforce and teach you discipline.
This is such an interesting subject and you brought up some great points. I heard an interview with someone that made it big "overnight" and because he was already good with money and was happy the money just improved everything and he didn't blow it like some people would.
This is forsure one of ur best videos I’ve watched. It confirmed a lot of the thoughts I’ve had and gave me a couple epiphanies. Please post more content similar to this.
Hedonic adaptation only kicks in after a certain point. Until a point (roughly $100k/year), more money does yield staying happiness as it eliminates daily worries about money for necessities.
This makes so much sense. Mr.Beast once said in an interview that the money is nice but he gets true fulfillment from giving which is why he’s been so active in his philanthropic ventures. Having a lot of money really is short term happiness but as humans we need much more to satisfy our inner needs. This was a great video….well done! 👌
Step 1 to happiness is to realize that being rich and having more things does not lead to happiness. Being able to feed your family, keep a roof over their heads and have some time to enjoy with friends and family are great goals. You will have more fun on a rented fishing boat in the Keys with friends than people on a yacht will have alone by themselves with their servants.
This is was I value being content. Content means you aren't in a bad place but also still have room to feel happiness and joy. Finding things that make you happy that aren't strictly a product of a monetary exchange is also critical for positive mental health. That's not to say hobbies don't have costs, but they aren't strictly a cheap thrill from a purchase. They create deeper joy and fulfillment.
The problem is those winners don't get to be actually rich, they just become "well off", but behave as if they became rich and burn through all their money quickly while showing off and letting family, friends and other people abuse them, since they let everybody know about their good luck. Being wealthier can put you higher in the pyramid of needs and give you peace of mind. If you're mature enough to be discrete you can enjoy a much more comfortable lifestyle with peace and a feeling of security you don't get below a certain level. Becoming really rich (billionaire +) is likely a lot of fun and would allow you to buy those expensive cars and houses (still with moderation, can't blow 10% of your entire wealth on a single house, for example). I had higher and lower standards of life and experienced different income security levels along multiple decades as well (I was never wealthy, though). I can say I was MUCH happier when I didn't care about the price of the food (I'd just buy without looking, provided I wasn't buying insanely expensive stuff, of course), a nice car, ate 70% of my meals in restaurants and paid someone to clean my house and do my laundry. I also had to live for a considerable amount of time where I struggled and had to keep the heat off and was also forced to live with roommates, borrowing money from the bank to pay for some essentials and eating cheap canned food. I didn't starve but I was surely feeling miserable. I never got used to being poor, I didn't get out of feeling very miserable until I got out of that situation even though it lasted a couple of years (long enough for a "normal" person to get used to, I guess?). On the opposite end, I didn't get less enjoyment during that decade and a half where I could afford a middle class lifestyle either, I was always doing enjoyable things and my baseline was much higher, always (you can feel sad when bad things happen but you don't feel depressed and planning to end yourself to stop the suffering). That's my personal experience, of course. If I ever won a massive prize or became really wealthy I'd do everything in my power to conceal it so people wouldn't come trying to take it away from me, but I'd (re)upgrade my life to live in a larger newer cleaner house, I'd hire a housekeeper and a gardener, I'd buy a nice car that's safe, large and comfortable, while discreet (I love family vans) and I'd travel more. Nothing new, just "back to the basics" (I don't feel entitled to them either, just miss that "lifestyle" badly 😬). Maybe the biggest problem is that people want money to be "better than others" instead of seeing it as a tool that allows you to be safe and comfortable. Funny many burn a lot of money on luxury items but still do their dishes and mow their gardens... 🤷🏻♂️ Sorry for the very long comment 😬
Why apologize for the length of your comment? People are free to read and learn from your experience, or they can choose not read it. I agree with what you said about many people not understanding that they'll be "well-off" but not that "rich" (although it's all relative and to many people that would be rich to them). I think many winners over-estimate how much money they've won and forget about other costs such as taxes, or the maintenance costs of a large and expensive house and luxury cars etc. They mistakenly see it as a bottomless pit of money, and fail to track spending and curb it before they burn through it all. They make bad decisions and buy things which cannot be converted back into cash that's close to what they paid for it. For example they don't buy property in areas which have experienced an increase in, or maintained prices. Or they don't buy stocks in say, blue chip companies. Instead they spend a lot of money on items which rapidly depreciate such as cars, boats, luxury goods etc. And when some of them try to "invest" in their own businesses or whatever, they lack experience, knowledge, or fail to do the required investigation and preparations. And so the business fails, and sometimes leaves them with debts and losing more money than they put into it. But the same thing can be said about the heirs and descendants of the very wealthy. Plenty of once very wealthy families have lost their fortunes over a few generations, as the children or grandchildren or great-grandchildren of the fortune makers grew up in luxury and not having to work and built up a fortune, so they continue to spend massively and eventually spend it all. Although Anderson Cooper is now wealthy due to his highly successful career, he was apparently told when he was young, by his mother, heiress to the famous Vanderbilt fortune, that the money was mostly gone and that he would not inherit much. Fortunately his mother, Gloria Vanderbilt, didn't have to worry since she lived long enough to see Cooper become wealthy on his own. When Gloria died she left only an apartment in NYC, worth easily $1mill - nothing to sneeze at but a huge comedown fron the vast wealth of her grandfather - bequeathed to her elder son Stan. It's unclear what the value of everything else that was bequeathed to Cooper. Apparently her home was full of antiques and art pieces so possibly that could add up to a fair amount. Gloria Vanderbilt had her own successful businesses including a famous jeans business, but somewhere along the way the fortune she inherited was spent. You don't have to be a lottery winner or suddenly successful musician or celebrity to spend your way through your fortune.
@@TheSimArchitect I have to say that I disagree that becoming a billionaire would be fun. I think that amount of wealth would become a kind of mental burden - having to manage it, all the endless possible ways to spend it and all those decisions - as well as probably inducing some people to try to become high society types and spend lavishly on yachts and mansions to keep up with the other ultra wealthy they meet. Also, there's a dark underbelly to people that wealthy and powerful - think of types like Jeffrey Epstein and Ghislaine Maxwell, Harvey Weinstein, etc. Also, the potential for gold diggers is far greater. But I think having under 10 million, newly wealthy people can avoid that sort of thing more. They can still live very comfortably like an ordinary middle class person, without the fame and scrutiny, without the excess and the vices. Fly under the radar.
@@SY-ok2dq You might have to "disappear". It sucks they like to publish the name and sometimes film and photograph you when you win a prize. You can forget about current family and friends, since they'll surely remember who you are and they will start to contact you asking for money (directly or indirectly through closest relatives like your mother, for example). There's also security issues because some will try to steal from you, kidnap you etc. That's another reason why you will likely need to move. But, besides that adaptation, it's priceless to have that peace of mind. You just need to develop a different set of skills and avoid messing up with a possibly once in a lifetime chance, if you ever have it happening to you. I don't think I'd be sad, at all, or overburdened. I'd just need to do some proper research to give myself a comfortable lifestyle that I'd be able to afford for the rest of my life while not having to share my "good fortune" with anybody I don't want to.
@@TheSimArchitect I would not personally feel overburdened, but it does happen to many people. Decision fatigue can become a problem for some, dealing with matters which they've never had to deal with, and are ill equipped to deal with it well. Becoming overwhelmed and making bad decisions. Also, in some countries/states, lottery winners are allowed anonymity and are not forced to be photographed etc. for announcement in the media. I would have no problem moving away, nor with keeping my mouth shut. Nor would I have any problems with family/relatives as I am only close to one person (sibling,, other family members and relatives are deceased or ageing, or I simply never see) and I would share it. Wealth is not a big deal to me, nor are luxuries or material things, expensive vacations or vehicles etc. But if I had wealth, I would want to manage it well and to be able to fund or set up numerous charities for causes that I have an interest in. I would be very involved in that, and would leave pretty much everything that I might still have upon death to those charities. Perhaps I'd bequeath some things and small amounts of money to some people, friends and so on. I would definitely avoid any hangers-on, would-be gold diggers etc, and would not have problems saying "no." In any case, I'd keep it under the radar, and not let others know the true extent of my wealth. I've read far too many true stories of kidnappings, extortion plots, messy divorces and the contested wills of the wealthy. And also the way children and grandchildren etc. lavishly spent away everything.
I would still be the same, I could buy a lot of stuff now but I don't. I'm not rich, but I'm choosy with what I buy. I have an older car, cheap phone and I don't spend money on fast food/restaurants. I'm a minimalist, but not extreme. It's good to keep a budget and not be greedy.
The comparison to eating cake is so true, during the endorphins flow, then you will even get the guilt factor making you depressed if you aren't at the fitness level you desire.
the reason this phenomenon occurs more often to the lottery winner or the big-break star than the grind it out business person is because of a key principle held by the grind it out types: delaying gratification. even when you have accumulated a good deal of wealth, you are trained in the ways of restraint and gradually step up your lifestyle. i know plenty of VERY wealthy people who fly coach and only switch to buying first class seats later in life.
Lmao, Spencer perfectly puts the pursuit of wealth in it's hilarious perspective and then throws it all out the window in the last 5 seconds of the video. Don't worry Spence. I got the message.
This is why Marcus Aurelius said to occasionally eat plain ass food. I used to live in my car and when I got an apartment I was actually less happy because the discipline of living in the car kept me moving. I've since re-applyed said discipline, but I sometime think I should go do a week in the car just to remind myself how great having outlets, trash disposal and a bathroom really is.
In economics the "hedonic adaptation" can be compared to or is almost similar to Hermann Heinrich Gossen's first law of Utility (1854). He also used hedonic calculus for his economic theories.
Yep, the law of utility is a measurement I use all the time. The hedonic adaptation is similar to the law of utility. Happiness is such a ridiculous thing to measure.
This hands down beats any article or video I’ve ever watched while trying to discover why money doesn’t buy happiness. This is so well said a written It’s not that it doesn’t buy happiness but it now sets the expectations for happiness a bit too high to be re-attained or surpassed Great video Spence. First time I’m Commenting on your videos since I started viewing 😅
My dad won the lottery years ago. We lived in a state where you could not collect the money anonymously, so he created a trust with his initials, and the media listed the "trust" as the winner. It remained a family secret for many years and no one outside of the immediate family ever knew he won. He invested most of the money and has tripled it since then by keeping them in mutual and index funds. Always collect anonymously, if you can.
How much did he win? And how much did he invest? And how does the s&p and index funds pay out? Also, does the payout of the s&p vary monthly?
Not wanting to be in ya business I’m just curious about the s&p payout
How much did he win?
Answer the questions asshole
@@showrunner2183 We will never know 🤫
Why wining the lottery ruins people? They dont ruin anybody. There are over 50 states with lottery twice a week, plus power ball and mega money and about together with other forms of wining there are about 300-400 new millionaires weekly. That in 52 weeks even if some weeks no winners at least 15,000 new millionaires yearly. The joke is that there are few hundred of them that lose it all gets the attention, while the rest invest in real estate and other forms and survive and grow with it. It is society's assumption to think the worst since bad news/ things sell....
I won the lottery after spending £10 on tickets, and it didn’t make any happier.
Maybe that’s because I won £2.50.
hahahahaha
Big James for the win!
I hope you didn’t spend it all on sweets
😂😂😂🤣
Is there a lottery for 2.50? That's a consolation prize🙄
A lot of us would call this “forgetting where you came from.” Wanting to get out of a bad situation is very motivating, but not taking lessons from that bad situation can be catastrophic.
I don't. F**k where I came from, I only care about where I'm going and I don't want to take anything from that bad situation with me LOL
@@2pacisakilthemc21 Umm, so you haven't learned anything from you bad situations? In the words of Fabolous "Your failure's gonna teach you to be successful"
@@2pacisakilthemc21 i completely understand what u r saying. I hope u get where u want, while enjoying both the road and the finish line to your success.
Can't change what can't be changed. Only thing you can do is distance yourself from it as much as possible.
It’s less about where they came from and more people who spent the majority of their lives poor don’t have much knowledge about savings, investing, or planning for the future. They get excited and overwhelmed and go on massive spending sprees like children and blow it all in a matter of a few years.
"Money can't buy you happiness,
but poverty can't buy you shit!"
Great subject. Great video!
Even Dan Bilzerian can fumble his way through a profound statement on the hedonic principle. There is always something to be learned
It's all about listening to hear , and not to respond.
@@DarkSideLegendGamersOfficial I think his point is the fact Dan is a well known moron.
Read books
@@gaurd3 KNAWledge
First time he doesn’t cap about something 😂
Money is a beast you have to tame.
It's a tool not synonymous to happiness, but some problem solving. Happiness comes from within
Nobody can find happiness within when the outside environment is torturous. The burning witches never smile.
@@elinope4745 untrue. Happiness is genuinely an internal affair. Outside circumstances can make it hard or nearly impossible, sure, but that doesn’t mean that happiness is somehow from outside.
As you grow up and experience life, you’ll find that outer things don’t bring happiness. Satisfaction? Maybe. Happiness? Nope.
@@elinope4745 untrue
If you have a level of joy within, they can burn you but they can’t take away your internal joy. They can take away happiness. Your not excited about burning at the stake, getting toes cut off, hung on a cross, or so forth, but that doesn’t take away your internal joy.
Happiness is temporary, internal joy is something you construct, and maintain so that the pressures of life doesn’t destroy you
There is something out there that is destined to make you happy, whether it be a person place or thing. Money makes it easier to find that thing.
Spoken like someone who's never had to deal with bill collectors and having their utilities turned off.
This video was awesome and it really puts into words a lot of things I have experienced in life while both broke and with money.
Wats good man
@@user-wc6yf3ly3u uu
@@user-wc6yf3ly3u uui
it’s a REALLY GREAT video , but it really shows how LOVE is underrated , self love especially , love is where the infinite well joy is , and sadly most people don’t even know what love truly is , true friends can’t be bought but an entourage of ass kissers can be , buying your friends and family whatever they want is easy when you have the money to do it but building a family can’t be bought , putting time and energy into your family / tribe is priceless … a lot of people who have money don’t understand love , and don’t understand how to love people for who they are … instead wealthy people only want to be around other wealthy people OR dominate people who have less than them materially (it’s really sad) … the guy interviewing with Joe Rogan made a lot of strong points but in the end he’s lost and has very little love in his life he’s a spiritually poor man
@@user-wc6yf3ly3u Yo, you're so pathetic pretendind to be Spencer Boy.
This might just be Spencer's most important video. I really think people underestimate the power of knowing stuff like this. Once you master yourself, you can master the world.
For sure man. It really ties in with stoicism I believe. If your grateful for what you already have, it helps keep that hedonic level lower. This, creating larger deltas and more satisfaction whenever something good happens, and smaller deltas whenever something bad happens
Best advice I ever received was learn self discipline.
It's why I, whenever I do take part, pick a lottery that instead of one prize €120 million and then drastically decreasing prizes...i like the ones where people can win 500k, or a million max. More winners, life changing still and a lot less people wanting things from you because they realize that after taxes, people would often use it to pay off their mortgage and then increase their disposable income. But it's also enough to move elsewhere.
Over here in the Netherlands we also have one called De Postcode Loterij which is, as you could guess, base don your postal code / zip code. So you share the prize with whoever has tickets in that small area. This leads to messed up relations even more. When the prize is large, you get the ones who have and the ones don't have. It's also a sneaky way to have people play because fear of missing out.
Well said
Another way to think of winning the lottery is like playing a fun challenging video game. You get the satisfaction of gradual progression and leveling up, then suddenly you get a cheat code for "God Mode". Now you can crush anything in your path and have all the gold, loot, item, equipment, etc you want. It's fun af at first, then the game just becomes boring and unsatisfying. Imagine that happening in life, except you can't just quit the game (life) and go play another one. I mean, unless you count taking your own life, which is unfortunately what some do.....
Your comment got me thinking...
@@zsascsforever4155 hopefully it's positive thinking 👍🏾
One of the best comments on RUclips I have seen in a while!
Actually I have experienced this before playing Minecraft. Creative mode makes you feel like a god but it eventually gets old and survival instantly becomes vastly better because you can have highs and lows in it, dying to a zombie could be a low and finally crafting that diamond armour could be a high. I think emotions should fluctuate so we can really appreciate them, else if we all stood on one emotional plane we would be so bland.
Which would probably explain why many millionaires and billionaires become philanthropic after experiencing all the luxuries of life as happiness is usually experienced when "giving" so to speak.
Literally my life, from having no money to losing almost everything and now back to have money (all through business). I think going through shit literally teaches you how to adapt naturally. Thank you for letting us know the proper idea/term for it
it also ruins people because others will sue, blackmail, and even kill for money.
there was a post on 4chan about it, you gotta get a lawyer in a large national firm (local people get word around, national lawyers dont care about your locality) and basically tell nobody else even if it's family. family becomes enemy when you have money.
I rarely comment, but Spencer, I just wanted to say this was definitely one of my favorite videos of yours I have watched. It really made me take a step back from my materialistic desires and reconsider what to pursue and how to sustainably be happy.
Same. Never thought of happiness this way.
Me too!
Why do people think that money buys happiness?
It buys material things, like living in comfort, security, some financial freedom, and a better standard of living. Something like a lottery win ought to provide you a secure, very comfortable life - but not an extravagant life of luxury - for the rest of your life. Managing that money is your own responsibility. And happiness or contentment is your own responsibility too, whether you're just getting by or you're "wealthy" (which means different things to different people).
We need to keep in mind that even low income people living in a developed country probably have a vastly superior living standard to poor people in developing countries. And in fact, we live in a better, safer, more comfortable, and less disease ridden world than even wealthy people living several hundred years ago.
Winning the lottery is a blessing, learning to say NO is a gift 🙏🙏 people need to learn control.
You said it like a true winner!😃👍
Two problems I have run into as a lottery winner is that it sucks having money when you can’t tell people and it sucks having money when the people around you (close friends and family) don’t.
I've been teaching myself that I l9ve brisk teas drink them non stop but I've learned to ratiion them meaning try to stretch them for a long time water as Well, money should be rationed dosen't matter how much you have
@@mattstone9364 damn I never thought about it that way. Not to be too encroaching on your personal life but have you ever considered paying for someone in order for them to be able to accompany/experience something with you that they wouldn’t be able to afford to do with you?
@@matthewserrao2926 i do that all the time, I have also given a shit ton of money away.
Interesting video. One possible flaw with the premise of evaluating happiness levels after a windfall is the assumption that every person seeks or needs material things to be happy or happier. To me, the primary way life-changing money would support my happiness is the freedom it would buy me. While I don't have Buddhist-level separation from material pleasures, I wouldn't feel the compulsion to amass much that I don't already enjoy.
The fastest way to ruin a game is to enable cheat codes on it. So now when I win the lotto I'll be sure to set up a schedule so I constantly have a salary and lifestyle increase rather than getting it all at once. Basically pay some laywer a few thousand to set things up so I have a constant increase in "salary" over 20-50 years. Start with $100k per year and then scale that up at 50% per year. That way I am constantly comparing myself against who I was last year and it gives me something to look forward to, maybe even make it performance based so it's even more like a video game.
This is legit the perfect idea
I've thought about that before, I don't think it's quite the same.
I just think you need to spend for your means and put yourself in situations to grow.
I inherited a lot of money but I still went to school and got a nice job. I also did things to avoid gold diggers and what not because that would affect your long term happiness.
I actually wouldn't mind coming on this channel to talk about what to do when you get a big inheritance (or any inheritance) and what not do to.. People always in an emotional state of mind when they lose a parent or parents and that's when people take advantage of them.
Hiring a lawyer is a smart move though, I immediately hired an estate attorney and fiduciaries. You would be shocked at how many idiot friends were giving me investment advice and are weirded out by me paying people to invest for me.. But I see consistent returns and they always lose money taking big risks. So basically never listen to friends who aren't financial advisors but I think most people on this channel know that.
smart
Alternatively, take all the money upfront, invest wisely to maintain steady income, and then invest back into your community. Use your excess money to do something positive for the world, a long term project where you can feel that you are helping others who need it. That's what life is about, and money gives you the option to do it.
The difference between a job and a career choose where you work wisely is my advice
A wise man once said, What do you do if you have everything you've ever wanted and still wasn't happy? Made me realize that we need highs and lows. Can't always be highs because it becomes normal and you learn to stop appreciating it. Which it turn, takes away the happiness from it.
Some people live well with their winnings, but I truly enjoyed this video. I often think about this and feel that I would have to keep quiet as much as possible and move strategically because money brings out the worst in people, especially family! My grandfather left me, in his will, a small inheritance for college, and my four uncles sued me at 16yrs old, claiming that I was only a grandchild (not his child) and the other grandchildren didn't get anything. At the time, I was the only grandchild that went off to college. Talk about tension in the family!
Money exposes what humans are truly made of.
@@kaputasri Exactly!
Greed destroys everything beautiful in this world.
@@kaputasri in a capitalist society… sadly money is the only thing that matters in the end typically.
Had a similar experience, grandfather left literally everything in his estate and will to me and solely me and quite literally no one else in the family. Felt shitty since it was his way of using me to basically say fuck you to the rest of the family.
The Hedonic treadmill is so damn true. Dating, cars, etc….
Every so often I “reset” and force myself in less than ideal living situations so I don’t let lifestyle creep happen.
Lifestyle creep screws so many people over
That's the key.
Whenever I get tried of driving my car, I take the bus.
This way I'm thankful for my car
@@rolleddebacle7391 this is very smart
@Rolled Debacle lol I'm not tired of driving my car if I feel bored I'd go sports mode on occasions I mean if some person wanna race me an S***...
Please make more videos because I've watched them all and I'm starting to watch them all again. You are my financial advisor. Thank You Spencer.
On God 😂
@@user-wc6yf3ly3u SCAMMER ! 🤭 Pinned by ME
@♜ Pinned by Spencer Cornelia this is a scam, do not contact this number or do anything regarding them
I figured this out awhile back on my own like a lot of things in life. Thanks for the word of affirmation man. I knew I was on the right track keeping humble.
This is one of the most fascinating video I’ve ever see. I’m 37 and haven’t experienced an epiphany in a long time. This one did it for me, and I hope this video finds its way to everyone and it makes as much sense to them as it did to me. Thank you spencer
This is why my satisfaction, my gratitude, comes from being worth a shit. Regardless of outcome, that I do the best I can with what I've got, I am grateful just to be a part of life.
King
When I'm asked how am I feeling, I reply I'm ok....and ppl reply..just ok....& I'm like my ok is equal to great...because I'm at peace/ ease / stress free....regardless of what news I may have gotten or stress I'm under....I know the feeling/ situation (time frame) is temporary & I'll b right back to "normal" self...
Love the psychological take on this subject, man. Would be interested in seeing more vids exploring the hedonic adaption and it's relationship with money
Damn Bubba is that you in that thumbnail? (plus I went to your channel and checked you out) not bad!!
Are you gay?
Thank you so much for this video. This really put a lot of things in perspective for me especially since I used to be a strong believer that money does but happiness. I used to think about how rich and famous people would not act so estatic about the lavish gifts they receive but it all makes sense. When they continuously receive gifts that make their hedonic level reach 10 it becomes a normal feeling which the number diminishes overtime and they would have to continue to seek something overly extravagant to reach that level 10. I feel like the concept of hedonic set point could even be applied to dating and marriage because during the beginning of a relationship couples often have a higher level of happiness but overtime that level of happiness definitely decreases.
Money buys the ability to be happy
@@magnusred2945 100% agree!
@@magnusred2945 Spenser said happiness is a short term state so wouldn't money allow you to feel happy more often rather than be happy which sounds constant?
@@EddieOdora I know he mentions it as short term happiness but I would refer to it as pleasure (basically when dopamine is released) as apposed to long term happiness (release of serotonin). So yes with money it would allow you the opportunity to experience more short term pleasure eventually your body reaches a point of homeostasis and those short term moments of "happiness" stop feeling as good as they first did. Far too many people confuse short term pleasure (mostly experienced alone and inspire taking) with happiness (which is generally shared and inspires giving)
Look at your own life from the perspective of someone living in Africa without access to basic necessities or someone living 100 years ago working in hazardous conditions 12 hours 6 days a week. They would probably wonder how you could ever feel unhappy.
Wow it’s like I’m sitting here so unhappy today. Gambled off 2k last night.. had fun doing it but depressed and pissed off the next day. This video helped me feel better today. Thank you Spencer. It’s okay to feel all emotions just not one for too long.
Gambled 2k, shouldn’t of invested that in some index funds
Poker ?
Armine prestani kockat! 😉
Should have just bought stocks instead of gambling that money.
Looking at how people who go from 0 to 100 real quick, I’m curious how the successful (say, athletes who don’t go broke) keep their money long term and the thought process behind that. Would like a video on that.
Super insightful perspective on this topic, Spencer! May we always be enjoying life without wrecking our hedonic setpoints. 👏
If I win the lottery, you wouldn't even know I'm rich. I'd just fix my parents house up and live cheaply and comfortably knowing I'd be financially secure. I'd even get financial advisors.
That’s literally how I’ve done it.
@@mattstone9364 Sweet 😎👍
@@user-wc6yf3ly3u Get a fucking life you scammer
NOT necessarily. Depending on the state you live in lottery winners have to be made public
@@se2664 I live in Canada. We don't get taxed as much and last year a lottery winner in a nearby city wore a Darth Vader mask to collect his winnings.
That last part is so true 💯 as a person who’s has had it, lost, and working to get my wealth back up. I’d rather be rich and miserable than broke and happy. But it took me loosing my lifestyle and self destructing to see that true balance and long term happiness especially when you get it out the mud.
losing*
Please Ruin me Lottery! Powerball is 122 million tonight and i hope i win so it can ruin me😂
Personally I find the real key is happiness through meaningful connections to others. There is definitely a cut-off at the lowest financial rungs of society where a bit more money definitely helps, but I have known people who have had just enough to get by who had rich, happy, fulfilling lives, whereas I've know quite wealthy people who were lonely miserable saps.
The kind of happiness you get through friendships, kindness, etc... seems to transcend the "zeroing" out of the happiness graph.
The “3 of them” joke never gets old 😂
It doesn't lol
I watch every video waiting for it lol
Mr. Inorganic
This is one of the best RUclips videos I've ever watched on this channel. The law or principle of hedonic adaption is so dynamic to so many scenarios. Which were covered in this video
Glad you did a video on this !
I love how deep this goes. This is quality content.
Thank you for this introspective piece. Respect for this existential study. 🙌
This was really great. I loved the intertwining of finances with behavioral psychology.
"Money can't buy happiness, but I'd rather cry in a ferrari."
perfect explanation.
One of the best videos you have made! Loved how much research you did on this topic.
This is an amazing video that I want to come back and rewatch many times. It has a clear message and an easy way to understand this situation. Love it.
Easy to understand, hard to live if you’re in that situation… just watch yourself slowly creep and make exceptions
Forget who said it: "money can't buy happiness, but it can buy a jet ski and have you ever seen a sad person on a jet ski? No, no you haven't."
Jesus, the RUclips comments bots are getting bad.
@@Robert0Pirie fr it’s like under every comment
@Spencer Cornelia excellent video. most middle-class and working class people just aren't mentally equipped to deal with such newfound riches of a significant amount.
if i were to come into a large amount (in excess of $million), i would:
1-change my phone number immediately
2-get lawyered up, and find a good accountant/taxman
2-if it's $3m or more, i quit my job. if it's less, i'll stay at my job, and work on developing a side income.. (i make $65k CAD/yr which is $50k USD/yr, and i actually like my job)
3-pay off my mortgage, outstanding debts, credit card
4-give some back to those people who altruistically helped me around the way
5-stand my ground, say no to the vultures/gold diggers
6-depending on how big the win, i may have to move from my residence for at least a year
cheers from southern ontario 🍁
So much of it spins out from the disconnect between the person and the labor. Everyone is trained to work for money; if you find work that brings you meaning, extra funds will only accelerate what you are doing and allow you to get better. But if you just chase hedonic stuff, of course, you gonna be fed up after a while
Practicing gratitude is a great way of reexperiencing the happiness of things you've already done or acquired.
That video really summed everything up. I feel I don’t desire wealth that much anymore because capping at pleasure seems to be terrifying. I rather be at a fair middle.
Hoping this one goes viral. Nothing revolutionary here, but just really well summarised and presented and ends up being quite profound.
This doesn’t account for the ability of money to minimize pain though. Reaching a point where you don’t have to worry about paying for food, shelter, or emergencies will greatly increase your overall well being and personal relationships.
Not so much. Self control and discipline are imperative. If you obtain riches and/or wealth to pay for the things you mention you’ll stress yourself out trying to keep that same lifestyle. Practicing gratitude for the things one is blessed with is very powerful, every day is a new grind. Stay hungry, stay humble.
Temporarily. I remember being broke and desperate, and now even when I don't have money in my account it doesn't feel the same. I've gotten used to having plenty and barely remember the desperation. That's just how brains work.
This is one of my favorites videos you did. I've heard this a lot in the self-help niche on RUclips. That being said, your application of this concept is refreshing and new. It's nice when you aren't trying to sell me something & I'm actually able to use this information. (Not saying you Spencer sell anything at all. Imagine if Tai Lopez did the same topic as you and used the same evidence, he would have a link to his true happiness course.)
The ay Spencer incorporates the " THREE OF EMM" in almost every video since the original is something i find so hilarious, i swear everytime i just burst out laughing, he's so smooth with it.
thanks for another banger Spencer
totally agree. i experienced a lot of virality with my business, my following grew like 5x on ig and tiktok, made over 10k plus in revenue, etc etc. however, i find i’m just as stressed or even far more stressed these days than i was when i was just a college student figuring it out. i used to dream about times like this, now i’m here and i’m just stressed tryna figure out how to make it to a larger following, more visibility, more profits, etc. it’s crazy. i literally used to dream and fantasize about times like this. my lows now are literally my old highs. it’s so insane.
Great video Spencer. I'm not an expert but I think there is a similar concept in Buddhism that basically states that you should not let extreme emotions (joy or pain) affect you, as they throw you off your balance. You need to treat joy the same way as you would a negative experience and maintain a zen state, or else, as you stated, you will feel let down by reality.
Buddha was born a prince. Incredibly wealthy. So he had the freedom to ponder philosophy. Most Americans live paycheck to paycheck.
Totally agree. The only things that make me feel good: socializing, rest, exercise, healthy food, friends, work (in moderation). If I have these, I can can raise my baseline. But sex, money, expensive events-they’re fun, sure, but not life changing.
Thank you for this. Reminder that everything is relative. I always tell my single friends that they're better off making 2k a month with 300 in bills than I am making 10k a month with 8k in bills.
💯💯💯💯💯💯
Not to be picky but technically you still come out 300/mo better in that scenario
Nice mr organik shout out… p.s. I love how y’all settled it and glad you was wrong about needing security because I watch and respect y’all both
I just won the lottery. The intellectual lottery thanks to Spencer. Who knew you could weave psychology so well into a RUclips video. Well done.
I saw Spencer’s last video on this topic, and it blew my mind, and taught me how to understand this. Now it’s normal, and so cool to see another video from a different perspective
really really loved this video man, seriously one of a kind content creator. You know your audience very well, exactly what I think a lot of us enjoyed to learn.
People get miserable after making money because they think money will MAKE them happy, they're relying on things outside themselves to effect their emotions. 99.9% of people think this way about everything (relationships, vacations, concerts, alcohol etc.) And when the feeling is fleeting they get disappointed. True happiness comes from one's self or through the PROCESS of a worthwhile goal, not through attainment.
Self-fulfillment is the only way. It's what you see so many older ppl come to eventually.
Yes to all of this! I was thinking this exact thing while watching the video. If you're seeking happiness outside of God and yourself though wealth and material accumulation you'll never be happy.
It varies a lot imo. I think it all comes down to how responsible you are with money. Same way with the videos you do on athletes going broke. If someone that can manage money well wins the lotto I highly doubt they will ever go broke.
I wanna be ruined by winning lottery rather than being broke
Getting ruined by winning the lottery usually leads to heckling broke again 🤣
This is very interesting, especially the timing of this as I am personally expending a windfall shortly, it gave me another perspective on things. Thank you, Spencer.
your content has been amazing this year, Spencer!
One of the best channels on YT. Thanks Spence for your unique analysis
I hear happiness and sadness, but I'm not hearing comfortable. Maybe I'm different, but to me, a large boost in income would mean clearing my student debt and buying a house with a backyard. Not a mansion or fast cars. Maybe 4 or 5 bedroom house in the suburbs. I don't understand the desire for the most a lot the time instead of some of the time.
Winning the lottery was the worst thing to ever happen to me. Seriously. Ten years later I'm broke again with 5 kids from 5 different women, loads of debt, drug and gambling addiction. Wish I hadn't won.
This was so interesting. Thank you for putting all of this together Spencer
A friend won $6.6 million as a young 20 something back in the mid 1980's. He ended up quitting his job at a Supermarket. He didn't work again during the 20 years that he received a check from the State Lottery. He didn't invest the money so that he would have had money for a lifetime. He did buy a house on the hill bought a couple nice cars, and spent the money on other things. A friend helped him try and get a job. The problem was he didn't know how to put a resume together, had no saleable skills, didn't know how to operate a computer or work any of the basic computer programs used in business. He ended up getting a job at a retail location and living in a small apartment.
Some of your best work, Spence. Congrats. Loved this.
One thing I've learned over the years is pursuing a goal is better than pursuing happiness. Happiness is fleeting, goals are endless.
If you don't have something you are pushing towards, you are pushing towards nothing and are aimless.
Challenging yourself and intentionally making yourself uncomfortable from working out and also mentally pushing yourself will make you feel comfortable at baseline, because of the amount of discomfort you are put under regularly.
It's funny you quoted Dan out of everybody.... what's even funnier is he actually made a valid point 🥴
I am awaiting a settlement that will definitely change my family and I’s life.
Thanks for this! I wont get greedy. Gonna build generational wealth. I have to with how each year gets tougher and more expensive
I did a video about the Hedonic Treadmill. I didn’t articulate it nearly as well as Spencer. Once I understood the concept, it totally changed my life.
Spencer I've learned a LOT from your videos... always entertaining. But... this is next level AWESOME MAN!!! This is DRUG ADDICTION as well... always chasing the feeling from the 1st high... but... its NEVER the same. So you do more and more at any cost... any negative, and doing more and more kills you before you EVER reach that feeling again. Gold man... this is really good info man.
Great video. 👏🏼
I learned a new term, “hedonic setpoint”.
Yeah it’s a different perspective from the conventional form of happiness that we’re used to hearing about.
I had never thought about happiness in this way before but it makes a lot of sense, this has been one of my favorite videos
Discipline is what’s needed to sustain being satisfied when you have a lot of money. If you’ve worked for a lot of money, you’ve most likely learned discipline and are more likely to keep your financial gains. If you suddenly win a bunch of money, hire someone who will enforce and teach you discipline.
Was born with a disciplined spoon in my mouth.
This is such an interesting subject and you brought up some great points. I heard an interview with someone that made it big "overnight" and because he was already good with money and was happy the money just improved everything and he didn't blow it like some people would.
The RUclipsr that I used to watch once called it sudden wealth syndrome he said it’s like imposter syndrome but on steroids.
This is forsure one of ur best videos I’ve watched. It confirmed a lot of the thoughts I’ve had and gave me a couple epiphanies. Please post more content similar to this.
Hedonic adaptation only kicks in after a certain point. Until a point (roughly $100k/year), more money does yield staying happiness as it eliminates daily worries about money for necessities.
but now I think I would be happier at 150k! And when I get to 150k, i would like to get 200k...and so on
Yep, it’s hard to be happy when bare necessities are a struggle, but once those are out of the way, it can be hard to find contentment after😄
Spencer this might be your greatest video
Getting rich isn't an end goal, it's a different group altogether - so I just wish those who achieve it
Don't forget to have fun
This makes so much sense. Mr.Beast once said in an interview that the money is nice but he gets true fulfillment from giving which is why he’s been so active in his philanthropic ventures. Having a lot of money really is short term happiness but as humans we need much more to satisfy our inner needs. This was a great video….well done! 👌
Step 1 to happiness is to realize that being rich and having more things does not lead to happiness. Being able to feed your family, keep a roof over their heads and have some time to enjoy with friends and family are great goals. You will have more fun on a rented fishing boat in the Keys with friends than people on a yacht will have alone by themselves with their servants.
i think money does not buy happiness because humans are social creatures
This is was I value being content. Content means you aren't in a bad place but also still have room to feel happiness and joy.
Finding things that make you happy that aren't strictly a product of a monetary exchange is also critical for positive mental health. That's not to say hobbies don't have costs, but they aren't strictly a cheap thrill from a purchase. They create deeper joy and fulfillment.
The problem is those winners don't get to be actually rich, they just become "well off", but behave as if they became rich and burn through all their money quickly while showing off and letting family, friends and other people abuse them, since they let everybody know about their good luck.
Being wealthier can put you higher in the pyramid of needs and give you peace of mind. If you're mature enough to be discrete you can enjoy a much more comfortable lifestyle with peace and a feeling of security you don't get below a certain level.
Becoming really rich (billionaire +) is likely a lot of fun and would allow you to buy those expensive cars and houses (still with moderation, can't blow 10% of your entire wealth on a single house, for example).
I had higher and lower standards of life and experienced different income security levels along multiple decades as well (I was never wealthy, though). I can say I was MUCH happier when I didn't care about the price of the food (I'd just buy without looking, provided I wasn't buying insanely expensive stuff, of course), a nice car, ate 70% of my meals in restaurants and paid someone to clean my house and do my laundry. I also had to live for a considerable amount of time where I struggled and had to keep the heat off and was also forced to live with roommates, borrowing money from the bank to pay for some essentials and eating cheap canned food. I didn't starve but I was surely feeling miserable. I never got used to being poor, I didn't get out of feeling very miserable until I got out of that situation even though it lasted a couple of years (long enough for a "normal" person to get used to, I guess?). On the opposite end, I didn't get less enjoyment during that decade and a half where I could afford a middle class lifestyle either, I was always doing enjoyable things and my baseline was much higher, always (you can feel sad when bad things happen but you don't feel depressed and planning to end yourself to stop the suffering).
That's my personal experience, of course. If I ever won a massive prize or became really wealthy I'd do everything in my power to conceal it so people wouldn't come trying to take it away from me, but I'd (re)upgrade my life to live in a larger newer cleaner house, I'd hire a housekeeper and a gardener, I'd buy a nice car that's safe, large and comfortable, while discreet (I love family vans) and I'd travel more. Nothing new, just "back to the basics" (I don't feel entitled to them either, just miss that "lifestyle" badly 😬).
Maybe the biggest problem is that people want money to be "better than others" instead of seeing it as a tool that allows you to be safe and comfortable. Funny many burn a lot of money on luxury items but still do their dishes and mow their gardens... 🤷🏻♂️
Sorry for the very long comment 😬
Why apologize for the length of your comment? People are free to read and learn from your experience, or they can choose not read it.
I agree with what you said about many people not understanding that they'll be "well-off" but not that "rich" (although it's all relative and to many people that would be rich to them). I think many winners over-estimate how much money they've won and forget about other costs such as taxes, or the maintenance costs of a large and expensive house and luxury cars etc. They mistakenly see it as a bottomless pit of money, and fail to track spending and curb it before they burn through it all. They make bad decisions and buy things which cannot be converted back into cash that's close to what they paid for it. For example they don't buy property in areas which have experienced an increase in, or maintained prices. Or they don't buy stocks in say, blue chip companies. Instead they spend a lot of money on items which rapidly depreciate such as cars, boats, luxury goods etc.
And when some of them try to "invest" in their own businesses or whatever, they lack experience, knowledge, or fail to do the required investigation and preparations. And so the business fails, and sometimes leaves them with debts and losing more money than they put into it.
But the same thing can be said about the heirs and descendants of the very wealthy. Plenty of once very wealthy families have lost their fortunes over a few generations, as the children or grandchildren or great-grandchildren of the fortune makers grew up in luxury and not having to work and built up a fortune, so they continue to spend massively and eventually spend it all. Although Anderson Cooper is now wealthy due to his highly successful career, he was apparently told when he was young, by his mother, heiress to the famous Vanderbilt fortune, that the money was mostly gone and that he would not inherit much. Fortunately his mother, Gloria Vanderbilt, didn't have to worry since she lived long enough to see Cooper become wealthy on his own. When Gloria died she left only an apartment in NYC, worth easily $1mill - nothing to sneeze at but a huge comedown fron the vast wealth of her grandfather - bequeathed to her elder son Stan. It's unclear what the value of everything else that was bequeathed to Cooper. Apparently her home was full of antiques and art pieces so possibly that could add up to a fair amount.
Gloria Vanderbilt had her own successful businesses including a famous jeans business, but somewhere along the way the fortune she inherited was spent.
You don't have to be a lottery winner or suddenly successful musician or celebrity to spend your way through your fortune.
@@SY-ok2dq Thanks for your kind words. I agree with you entirely.
@@TheSimArchitect I have to say that I disagree that becoming a billionaire would be fun. I think that amount of wealth would become a kind of mental burden - having to manage it, all the endless possible ways to spend it and all those decisions - as well as probably inducing some people to try to become high society types and spend lavishly on yachts and mansions to keep up with the other ultra wealthy they meet. Also, there's a dark underbelly to people that wealthy and powerful - think of types like Jeffrey Epstein and Ghislaine Maxwell, Harvey Weinstein, etc. Also, the potential for gold diggers is far greater.
But I think having under 10 million, newly wealthy people can avoid that sort of thing more. They can still live very comfortably like an ordinary middle class person, without the fame and scrutiny, without the excess and the vices. Fly under the radar.
@@SY-ok2dq You might have to "disappear". It sucks they like to publish the name and sometimes film and photograph you when you win a prize. You can forget about current family and friends, since they'll surely remember who you are and they will start to contact you asking for money (directly or indirectly through closest relatives like your mother, for example).
There's also security issues because some will try to steal from you, kidnap you etc. That's another reason why you will likely need to move.
But, besides that adaptation, it's priceless to have that peace of mind. You just need to develop a different set of skills and avoid messing up with a possibly once in a lifetime chance, if you ever have it happening to you.
I don't think I'd be sad, at all, or overburdened. I'd just need to do some proper research to give myself a comfortable lifestyle that I'd be able to afford for the rest of my life while not having to share my "good fortune" with anybody I don't want to.
@@TheSimArchitect I would not personally feel overburdened, but it does happen to many people. Decision fatigue can become a problem for some, dealing with matters which they've never had to deal with, and are ill equipped to deal with it well. Becoming overwhelmed and making bad decisions.
Also, in some countries/states, lottery winners are allowed anonymity and are not forced to be photographed etc. for announcement in the media.
I would have no problem moving away, nor with keeping my mouth shut. Nor would I have any problems with family/relatives as I am only close to one person (sibling,, other family members and relatives are deceased or ageing, or I simply never see) and I would share it. Wealth is not a big deal to me, nor are luxuries or material things, expensive vacations or vehicles etc. But if I had wealth, I would want to manage it well and to be able to fund or set up numerous charities for causes that I have an interest in. I would be very involved in that, and would leave pretty much everything that I might still have upon death to those charities. Perhaps I'd bequeath some things and small amounts of money to some people, friends and so on. I would definitely avoid any hangers-on, would-be gold diggers etc, and would not have problems saying "no." In any case, I'd keep it under the radar, and not let others know the true extent of my wealth. I've read far too many true stories of kidnappings, extortion plots, messy divorces and the contested wills of the wealthy. And also the way children and grandchildren etc. lavishly spent away everything.
I'm thankful everyday that I can buy all the groceries I need and want without having to think if I can afford it first.
If I won the lottery, I’d still be living my life the same way I am right now.
No you wouldn’t
I will pay off my debts, pay off my home, but live the same way knowing how materialism can put you into problems.
I would still be the same, I could buy a lot of stuff now but I don't. I'm not rich, but I'm choosy with what I buy. I have an older car, cheap phone and I don't spend money on fast food/restaurants. I'm a minimalist, but not extreme. It's good to keep a budget and not be greedy.
@@DavidDavisDH yessirrr. I’m a minimalist too. Make enough money to spend on whatever, but I choose not to. Just save and invest.
Fuck that. I’d travel the world. Buy up real estate. That’s just me though.
Thanks Spencer for pushing out these videos and finding a creative way to put in '3 of em'
The comparison to eating cake is so true, during the endorphins flow, then you will even get the guilt factor making you depressed if you aren't at the fitness level you desire.
the reason this phenomenon occurs more often to the lottery winner or the big-break star than the grind it out business person is because of a key principle held by the grind it out types: delaying gratification. even when you have accumulated a good deal of wealth, you are trained in the ways of restraint and gradually step up your lifestyle. i know plenty of VERY wealthy people who fly coach and only switch to buying first class seats later in life.
Lmao, Spencer perfectly puts the pursuit of wealth in it's hilarious perspective and then throws it all out the window in the last 5 seconds of the video. Don't worry Spence. I got the message.
What a great video on the hedonic treadmill. White boy Spence will be at 1M subs before 2023 if he keeps making this quality content
This is why Marcus Aurelius said to occasionally eat plain ass food. I used to live in my car and when I got an apartment I was actually less happy because the discipline of living in the car kept me moving. I've since re-applyed said discipline, but I sometime think I should go do a week in the car just to remind myself how great having outlets, trash disposal and a bathroom really is.
This is so brilliant, Spencer. One of your best yet.
In economics the "hedonic adaptation" can be compared to or is almost similar to Hermann Heinrich Gossen's first law of Utility (1854). He also used hedonic calculus for his economic theories.
Yep, the law of utility is a measurement I use all the time. The hedonic adaptation is similar to the law of utility. Happiness is such a ridiculous thing to measure.
This hands down beats any article or video I’ve ever watched while trying to discover why money doesn’t buy happiness. This is so well said a written
It’s not that it doesn’t buy happiness but it now sets the expectations for happiness a bit too high to be re-attained or surpassed
Great video Spence. First time I’m
Commenting on your videos since I started viewing 😅
"Buy three of em" 😂😂😂😂
Lmao
Love it!
All of that was very well put and made me ask myself some questions that are really relevant right now. Thumbs up, really good.
Education and knowledge passed down by the older generation to newer generation is one of the biggest problems in society.
Humans are just inherently selfish gluttons that's the problem.