Finally, financial security is a critical ingredient to a sense of wellbeing. Professor Robert Cummins and his research team at Deakin University have found that financial insecurity produces feelings similar to that of physical torture. The good news is that it does not require great financial resources to achieve an adequate degree of security and that beyond this level, increased wealth has little effect on the level of wellbeing.
Further, those who have achieved the main ingredients for thriving, are better placed to achieve financial security. The reasons for this are reasonably simple. Sound financial outcomes require good decisions in terms of how to earn, spend, save and invest money.
The pressure of the herd often undermines good decision making, leading for example to overspending to keep up with the Joneses, or pursuing exciting but dangerous investment strategies in favour of more mundane ones that are more likely to deliver a reasonable longer term result.
It requires great mental fortitude to overcome this pressure. But the ingredients that lead people to thrive emotionally, also strengthen mental fortitude and resilience as we have discussed.
This lies at the heart of our observation that people who are happy and also enjoy sustainable wealth, discovered what it was that made them happy first, before they became rich.