Mike Michalowicz says money makes life easier but doesn't create lasting happiness. He describes a dopamine trap where buying status symbols gives a quick high that fades, forcing you to chase the next hit. A man who sold his company for over $100 million became terrified of losing it, ending up sadder than before.
This is what really frustrates me, Amy. There is this pumping of an ideology that the more money you make, the happier you'll be. I got to call bullshit on that. I've had situations with no money for a long period. I have situations with a lot more money and it's a lot easier when you have a lot more money. Everything's a lot easier. There's no question. But for me and for people I've observed, it has not had any influence over contentment and happiness. And I think it goes back to that life wheel. Ironically, for some, more wealth allows for these quick hits. It's almost like the effect of a drug, I presume, is you get a momentary dopamine release. It's like, that was it, and you go for it again. So for some people, money becomes accumulation, and it's like, I got to get that expensive car or item. It's like, oh, this is amazing, I have it. It's like, well, that was it, and then we go for it again and again. Others, it's expression of power, like, look at what I can do, and are significant, and you get some accolades from your friends, or not friends, and they fade away. And it's like, hmm. So we keep going for those quick dopamine hits. There's another effect, which is the scarcity effect. This is the most bizarre. I have an acquaintance who sold his company for over $100 million. Wow. It was his life dream. Gets it. He goes in front of myself and some other groups. He's like, since I got this money, he goes, I am in the most fearful state of my life because I'm so afraid of losing it now. There's too much to lose. I've gotten what I've always wanted and now I'm so terrified I'm going to lose it. He's more sad than ever before. It's the most bizarre thing.
So that scarcity effect refers to the scarcity of security and comfort that you have. Yes.
To me, it's a scarcity of I have something that can vanish. You have the financial means to access pretty much anything on this planet, and he's more terrified than ever before.
