#899 - Sahil Bloom - The Harsh Truth About Money & Happiness

Sahil Bloom, along with other commentators like Williamson, delves into the complex relationship between financial wealth and personal happiness, revealing that while money is important, it is not the sole contributor to a fulfilled and happy life.

Money Buys Limited Happiness; Other Factors Matter More Beyond That

Bloom states that money can buy happiness only up to a certain point. Research shows that money has a clear impact on happiness at lower income levels as it alleviates fundamental burdens and stresses. There’s a baseline level of income that, once surpassed, does not continue to provide incremental happiness, especially if a person is already unhappy. Beyond this baseline, happiness is greatly influenced by natural disposition and other factors like free time, relationships, purpose, and health take the wheel in driving happiness.

Money Boosts Happiness At Low Incomes, Diminishing Returns Beyond Baseline

The baseline level of income is not universal; it varies depending on location and personal circumstances. Additionally, high net worth individuals often believe they need substantially more money to be completely happy. This need for more is consistent across different wealth levels, influenced by societal factors and a constant upward adjustment of the financial happiness threshold.

Wealthy People Continuously Reset Their Happiness Expectations, Seeking More Money

Similarly, despite their wealth, high net worth individuals consistently feel they need more. This perceived financial deficiency, driven by the allure of more exclusive lifestyles, leads to a persistent resetting of happiness expectations.

Money Shouldn't Be the Sole Focus; It Can Distract From a Meaningful Life

Bloom shares a personal revelation following the birth of his son, realizing that he had what he needed and that his previous pursuit of "more" distracted from other meaningful aspects of life. Williamson warns against significant financial windfalls like winning the lottery, arguing that they have the potential to raise a person’s baseline for happiness to an unattainable level, leading to what is termed the "Nova effect," where happiness quickly declines after a significant positive event.

Relationships, Purpose, Health, and Growth Are Key to Life Satisfaction Beyond Financial Wealth

The Harvard study of adult development found that relationship strength is the most reliable predictor of a good ...

Chris Williamson and Sahil Bloom discuss methods for forging a meaningful life guided by more than just the accumulation of wealth, focusing on decision-making principles, time with loved ones, and aligning actions with core values.

Defining a "Life Razor" - A Guiding Principle For Decisions

Williamson introduces the concept of a "life razor," a single ordinating principle to help filter every action by questioning whether it moves one closer to their end goal. He elaborates on how this can manifest in choices like leaving work early for date night or dedicating time to coach a child's sports team. Similarly, Bloom uses the "Apollo 13" movie metaphor where a fixed point in space assists in maintaining the correct angle for re-entry—analogous to having a central focus that aids in navigating life's complexity.

Examples Like Leaving Work Early For Date Night or Coaching a Child's Team Can Anchor Purposeful Living

Specific examples are provided, like Mark Randolph of Netflix setting a fixed rule to leave at 5 p.m. every Tuesday for a date with his wife, or a personal commitment to coaching one's child, which affirms one's identity and holds integrity over success. Williamson encourages readers to discover their "true north" and maintain consistency with the person they aspire to be.

Prioritizing Relationships With Finite Time

Bloom reflects on different stages in life, acknowledging that while the earlier seasons may center on building a financial foundation, later ones could shift one's "life razor" to prioritize being physically present with children during the critical years they admire you most. He shares a pivotal conversation with a friend that made him aware of the limited time left with his aging parents, leading him to leave his job and relocate across the country to cherish the remaining time.

Realizing Limited Time With Aging Parents Spurs Life Changes

This acknowledgment of mortality—realizing he may only see his parents around 15 more times—encourages people to review their life choices and make necessary changes to prioritize relationships o ...

The discussion led by Sahil Bloom and Chis Williamson unpacks the role of courage and risk-taking in achieving success, as well as the concept of expanding one's "luck surface area" through continual movement and interaction with the world.

Embrace Uncertainty, Take Bold Actions for Extraordinary Outcomes

Discipline and Persistence Let Successful People Seize Uncertain Opportunities

Sahil Bloom emphasizes the importance of investing your time when you're young to acquire knowledge, networks, money, wisdom, and experience, which are key to working smart later on. He suggests that one can deploy these assets where they have the highest potential return on investment. Bloom also credits his wife with giving him the courage to make significant life changes. He reflects on the necessity of discipline and persistence in the face of uncertainty, and gives the example of Isaac Newton, who during the plague, focused intensely on problems and formulated the laws of gravitation and invented calculus.

Furthermore, Bloom states that "fortune favors the bold," and echoes C.S. Lewis by saying that courage is the pivotal point for every virtue. He argues that disciplined individuals who persevere without guarantee of rewards are truly dangerous, and that those who consistently show up and stick to the basics seize the uncertain opportunities that lead to extraordinary outcomes. Sahil Bloom uses the example of Tim Cook, who moved from a stable position at IBM to a riskier role at Compaq and then Apple, as a testament to the success that can come from disciplined decision-making and persistence.

Williamson adds that one of life's greatest prisons is recognizing your ability to do great things but not having the courage to execute them. He also speaks about the fear of success and the potential disappointment of not being able to repeat extraordinary achievements. Williamson warns against using previous tools and strategies indefinitely, as they may not work forever, and the need to be deliberate evolves with experience.

Expanding "Luck Surface Area" Through Activities, Interactions, and Motion Boosts Serendipity

Idleness Limits Luck; Risk-Taking Boosts Potential

Sahil Bloom introduces the concept of a "luck surface area," suggesting that one’s potential for fortunate events can increase through action and interaction. He uses the analogy of a planet next to a black hole to highlight that inaction equates to having zero "luck surface area," whereas motion and proactive behavior can increase the likelihood of serendipity. Williamson and Bloom relate staying active and persevering to the concept of "winning momentum" and applying periodization to life's endeavors.

"Embracing Unbalance Early for Future Fulfillment"

Intense Focus, Hard Work, and Rebalancing Lead to Long-Term Success

Discussing life's "seasons," Bloom and Williamson imply that life doesn’t have to be balanced daily but can be viewed over longer periods like years. They conceive life as a game of tennis, sometimes being a "loser's ...