Money for nothing

People around the world have started buying the theory that money is not everything. It's getting quite louder with the global rich devoting huge huge personal wealth for the cause of philanthropy. And remember those are the gentlemen who have toiled their entire lives for earning those billions of dollars.

James Montier, an equity market strategist not only has a long term track record of accurate market calls, but also happens to be well a well known author on the subject of behavioural psychology. In a landmark note he advocates the priorities one should look at other than money in simple and lucid style.

Here is a gist of the piece...

If you are after specific investment advice, stop reading now. We seek to explore one of Adam Smith’s obsessions: what it means to be happy. We also discuss why that’s important to investors, and how we can seek to improve our own levels of happiness. The list below shows our top suggestions for improving happiness.

• Don’t equate happiness with money. People adapt to income shifts relatively quickly, the long lasting benefits are essentially zero.
• Exercise regularly. Taking regular exercise generates further energy, and stimulates the mind and the body.
• Devote time and effort to close relationships. Close relationships require work and effort, but pay vast rewards in terms of happiness.
• Pause for reflection, meditate on the good things in life. Simple reflection on the good aspects of life helps prevent hedonic adaptation.
• Seek work that engages your skills, look to enjoy your job. It makes sense to do something you enjoy. This in turn is likely to allow you to flourish at your job, creating a pleasant feedback loop.
• Give your body the sleep it needs.
• Don’t pursue happiness for its own sake, enjoy the moment. Faulty perceptions of what makes you happy, may lead to the wrong pursuits. Additionally, activities may become a means to an end, rather than something to be enjoyed, defeating the purpose in the first place.
• Take control of your life, set yourself achievable goals.
• Remember to follow all the rules.

Money for nothing......