wealth – Dispatches From The Front

I blew the mind of one of my Babson College students this morning.

Like most people, he believes that success is measured by how much money you have and how much money you make. By that measure, there is no single individual who is the world’s most successful.

After all, Bill Gates–whose net worth totaled $79.6 billion according to Forbes’s January 29, 2015, tally–probably has the most money, but I sincerely doubt he makes the most money every year.

That title probably goes to a hedge fund manager. For example, Ray Dalio–who runs $120 billion (assets under management) Bridgewater Associates–pulled in a cool $3 billion in personal earnings last year, according to Forbes.

But if you believe that success means both having the highest net worth and getting paid the most every year, then neither Gates nor Dalio is successful.

That’s because the pursuit of the most wealth or the highest annual income is success only if you keep winning every year. Otherwise, you are going to spend time trying to figure out how you can get to be number one–rather than taking pleasure in what you have achieved.

Does the language we speak determine how healthy and rich we will be? New research by Keith Chen of Yale Business School suggests so. The structure of languages affects our judgments and decisions about the future and this might have dramatic long-term consequences.

There has been a lot of research into how we deal with the future. For example, the famous marshmallow studies of Walter Mischel and colleagues showed that being able to resist temptation is predictive of future success. Four-year-old kids were given a marshmallow and were told that if they do not eat that marshmallow and wait for the experimenter to come back, they will get two marshmallows instead of one. Follow-up studies showed that the kids who were able to wait for the bigger future reward became more successful young adults.

Resisting our impulses for immediate pleasure is often the only way to attain the outcomes that are important to us. We want to keep a slim figure but we also want that last slice of pizza. We want a comfortable retirement, but we also want to drive that dazzling car, go on that dream vacation, or get those gorgeous shoes. Some people are better at delaying gratification than others. Those people have a better chance of accumulating wealth and keeping a healthy life style. They are less likely to be impulse buyers or smokers, or to engage in unsafe sex.

Tag: wealth

Success Is Controlling How You Spend Your Time | Inc.com

How Your Language Affects Your Wealth and Health | Scientific American