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Winning the lottery -

For many of us, the very appeal of the lottery lies in its perceived ability to increase our happiness. We imagine that having limitless money for material things can only make us more content.

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Short-term elation -

Indeed, in the short term a windfall of cash would give most of us some joy. It’s normal to like spending money on material things, whether it’s a new house or a flashy sports car.

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It doesn't last -

And yet studies suggest that any short-term increase in the level of happiness experienced by lottery winners does not generally last in the long or even medium term.

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It doesn't last -

In one study, the average level of happiness reported by 22 lottery winners after a few months had increased no more than the level of happiness of a control group who hadn’t won the lottery.

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Theories -

In a TED-Ed video about the relationship between winning the lottery and being happy, professor Raj Raghunathan explains a phenomenon called “hedonic adaptation.”

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Theories -

This phenomenon may go some way towards explaining why the feelings of elation produced by winning a large sum of money do not last for very long.

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Hedonic adaptation -

Hedonic adaptation, otherwise known as the “hedonic treadmill,” refers to our tendency to adapt to any situation in order to maintain a level of emotional equilibrium.

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Hedonic adaptation -

When it comes to levels of happiness, research suggests that most of us have a base level that remains pretty much constant throughout our lives.

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Hedonic adaptation -

While a dramatic event such as winning the lottery may initially increase that level, as we get used to the new, wealthy lifestyle, we over time revert to the base level.

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The need for stability -

It’s all about the need to maintain emotional equilibrium, and the same goes for any traumatic event that initially plunges us into despair and triggers extreme feelings of sadness.

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Hedonic adaptation in action -

For example, the same study that dealt with the lottery winners also looked at a group of people who had suffered an accident that left them paralyzed.

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Hedonic adaptation in action -

When asked months after their accident how happy they were, the participants reported levels of happiness nearing their original base level.

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Importance of hedonic adaptation -

So while hedonic adaptation may sound rather miserable in the context of winning the lottery, in fact it is important when it comes to maintaining our emotional stability.

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Other factors -

There are, of course, other reasons why winning the lottery may not increase our level of happiness once the initial feelings of elation have subsided.

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Money management -

For example, it can be difficult to manage large amounts of money properly, particularly for people who are not used to being in possession of such grand sums.

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Blowing the money -

It is not uncommon, therefore, for people to act irresponsibly and spend all of their winnings very quickly. A 2019 article by Business Insider tells the story of a single mom who won around US$8 million.

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Blowing the money -

Much of it she spent on a “big house, fancy cars, designer clothes, lavish parties, exotic trips, handouts to family, loans to friends" and so on.

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Blowing the money -

According to the article, within a decade she was back to "riding the bus, working part-time, and living in a rented house." Thankfully she did put some money in trusts for her kids.

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Isolation -

It can also be very socially isolating to suddenly come into a large sum of money. It is a sad truth that once we become rich, people tend to want things from us.

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William "Bud" Post -

According to Business Insider, when William “Bud” Post won US$16.2 million in the Pennsylvania lottery, an ex-girlfriend sued him for a third of his winnings and won.

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William "Bud" Post -

His brother was also arrested for allegedly hiring a hit man to murder him in the hope that he'd inherit a share of the winnings.

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Isolation -

For some people, the endless demands for money are enough to make them withdraw and isolate themselves from those around them.

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Meanness -

Then there’s the possibility that coming into money will actually make us meaner. One study involved a rigged Monopoly game in which experiments made some players rich very quickly.

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Meanness -

The players who got rich quickly started to patronize the other players and hog the snacks that were meant for all players to share.

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Tips and tricks -

However, it needn’t be all doom and gloom if you do happen to win the lottery. There are some things you can do with the money to keep that happiness level up.

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Invest in experiences -

Research suggests that we adapt to new material possessions much more quickly than we do new experiences. In other words, the hedonic treadmill goes slower for experiences.

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Invest in experiences -

By that logic, using your winnings to have a new experience such as a round-the-world trip, rather than blowing them on material goods, should mean you are happier in the long term.

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Be generous -

Another way to make sure that your money contributes to your happiness is to spend it on other people. Research shows that generosity makes us feel great.

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Be generous -

In one study, two groups of people were given a sum of money. The first group was asked to spend it on themselves and the second group was asked to spend it on others.

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Be generous -

When asked later the same day how happy they were, those people who had spent the money on others were significantly happier than those who had spent it on themselves.

Sources: (TED-Ed) (Business Insider)

See also: The best tips for personal money management

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