Ep.2 Avoiding "The Good Life" Traps

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Dec 22, 2023

This podcast explores the traps of pursuing material possessions and excessive work. It delves into the complex relationship between money and happiness, discussing the power of social comparison and how it impacts our financial decisions and overall well-being. The podcast also provides actionable steps for achieving financial goals and encourages self-reflection on values, purchases, regrets, identity, and life.

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ANECDOTE

Ten Years In The Earnings-Spending Trap

Dr. Mark Soth describes falling into the earnings-spending trap for about a decade after becoming an attending physician.
He explains how rising options and adaptability pushed him to escalate spending and chase the next level of reward.

INSIGHT

Hedonic Treadmill Drives Escalating Desires

Hedonic adaptation makes purchases and promotions feel temporary, driving a continuous desire for more.
That treadmill effect escalates spending or effort until an external shock reveals the problem, like debt or job loss.

ADVICE

Pause Before Spending Or Working More

Avoid impulsive buying driven by advertising and peer displays; use effortful thought to resist immediate rewards.
Focus spending and effort on activities that actually align with what makes life meaningful rather than hedonic impulses.

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Have you ever found yourself caught up in the pursuit of material possessions, believing they will bring you happiness? Or perhaps you've been lured into working excessively, thinking that the more you earn, the happier you'll be? In this conversation, we expand on the concepts covered in the previous episode and dive deep into money-happiness traps and how they lead to unexpected consequences, like mounting debt, burnout, and even strained relationships. We discuss the power of social comparison and how it can affect our financial decisions and overall well-being, and unpack seminal research to help you understand the complex relationship between money and happiness. We also explore the balance between work and personal life, aligning spending with your core values, and thought-provoking questions to reflect on your financial journey and happiness goals. Join us as we navigate the complex relationship between money and happiness and uncover the path to reaching your financial goals!

Key Points From This Episode:

(0:01:06) Temptations that distract people from their financial goals.

(0:03:48) The two sides of the money-happiness trap: spending and earning bait.

(0:08:11) Why more money doesn't always lead to more happiness.

(0:16:18) Insights into the social comparison trap and its impact on well-being.

(0:20:29) Key takeaways and actionable steps for achieving your financial goals.

(0:23:17) Self-reflection on values, purchases, regrets, identity, and life purpose.

Links From Today’s Episode:

Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/

Benjamin on X — https://twitter.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

PWL Capital - https://www.pwlcapital.com/

Dr. Mark Soth (The Loonie Doctor) — https://www.looniedoctor.ca/

Dr. Mark on X — https://twitter.com/LoonieDoctor

Money Scope - https://moneyscope.ca/

’High income improves evaluation of life but not emotional well-being’ — https://pubmed.ncbi.nlm.nih.gov/20823223/

‘World Happiness Report 2018’ — https://s3.amazonaws.com/happiness-report/2018/WHR_web.pdf

‘Experienced well-being rises with income, even above $75,000 per year’ — https://wpa.wharton.upenn.edu/wp-content/uploads/2021/01/Experienced-Well-Being-Rises-with-Income-January-2021.pdf