What does it mean to have \u201cenough money?\u201d Is that an ever-moving goalpost, or can we actually pinpoint a dollar amount for optimal happiness? And what\u2019s the psychology that underlies this money anxiety?\u00a0<\/p>\n
Reema talks with listener Miriam Tinburg<\/a>, who tackled this question in a very practical way when she quit her job to become a content creator. Then Reema digs into the research with Wharton professor Wendy De La Rosa<\/a>, who helps us understand why this is more of a psychological question than a math problem. And things get more complicated when we hear from Jo Nemeth<\/a>, an Australian woman who lives \u201cwithout money.\u201d\u00a0<\/p>\n A few takeaways:<\/p>\n The \u201chedonic treadmill\u201d is the idea that no matter how much we have (whether that\u2019s money, pleasure, or anything other good thing) we still feel the need for more. Our brains are really good at adjusting to the \u201cnew normal\u201d and then looking ahead for the next target.\u00a0<\/p>\n Objective vs. subjective wealth: Your objective net worth is a simple equation of all your assets minus all your debts. But that\u2019s not the only way to measure wealth. De La Rosa explains, \u201cOur subjective wealth is all about, how do you feel about your objective wealth? Do you feel like you have enough money? Do you feel like you lack money? Do you feel like you have enough resources? And it’s all subjective.\u201d<\/p>\n Your feelings impact your financial behaviors more than your actual wealth. \u201cIn our lab we’ve shown that over and above your objective financial situation, how you feel is more indicative and predictive of your financial behaviors than where you are,\u201d says De La Rosa. They\u2019ve found that those who have been made to feel less wealthy not only spend less but also save less, too, regardless of the amount of money they have!\u00a0<\/p>\n If you liked this episode, share it with a friend. And if you want to tell us what you thought about the episode or anything else, email us at uncomfortable@marketplace.org<\/a> or fill out the form below.<\/p>\n