Money Motivators
By MacKenzy Pierre
The estimated reading time for this post is 260 seconds
Since the beginning of time, from the silver and gold era economy to fractional reserve banking, money has been one of the most powerful motivators in the world.
Money drives people’s behaviors and decisions, from pursuing a particular career path to starting a business; the potential financial gains often serve as the primary driving force for people to work hard and take risks.
Money as a Motivator
Money is often considered the most powerful motivator because it can provide many benefits, such as access to material possessions, improved social status, and a better quality of life.
The desire to earn more often drives people to seek higher-paying jobs or work longer hours. It is also why many people choose to pursue a career in a field that offers high-paying salaries, such as medicine or law.
Money can also motivate people to work harder and be more productive.
A Society for Human Resource Management study found that 78% of employees reported that recognition and rewards motivated them to work harder.
Rewards, such as bonuses or promotions, are often tied to performance metrics, which can motivate employees to work harder and achieve better results.
Furthermore, money can also motivate people to take risks and be more entrepreneurial. The promise of financial rewards can encourage people to start businesses or invest in new ventures. This is because the potential for financial gain can outweigh the fear of failure.
Basic needs: Money as a Means of Survival
Many people’s primary motivation behind earning money is to meet their basic needs. This includes things like food, shelter, and healthcare.
When people do not have enough money to meet their physiological needs, it can cause stress and anxiety, negatively impacting their physical and mental health.
In many parts of the world, poverty is a significant problem. According to the World Bank, around 9.2% of the world’s population lived in abject poverty in 2017. This means that they lived on less than $1.90 per day. For impoverished people, money is often the only way to meet their basic needs. They don’t have the luxury of aligning personal values, passions, and interests with financial gain.
However, even for people not living in poverty, the need to climb the social ladder or avoid downward mobility can be a powerful motivator.
Enough money to cover expenses, save for retirement, and handle emergencies provides unyielding financial security.
This motivation often leads to pursuing high-paying jobs, investing in the stock market, and creating multiple income streams.
The inability to meet these needs can cause significant stress and anxiety, negatively impacting a person’s well-being.
Social status: Money as a Symbol of Success
Money can also be a motivator because of the social status it provides. In many cultures, wealth is seen as a symbol of success and status.
The desire to achieve a higher social status can motivate people to work harder and earn more money.
For example, in the United States, there is a strong cultural emphasis on the American Dream. This is the idea that anyone, regardless of background, can succeed through hard work and determination.
One of the primary ways that success is measured in the United States is through wealth. Therefore, the desire to achieve the American Dream can motivate people to work harder and earn more money.
Americans work, on average, 1800 hours per year which is significantly longer than the 1500 hours worked in France and the 1400 hours worked in Germany. Numerous Americans believe that self-actualization can be achieved through wealth.
Wealth can also provide access to social networks and opportunities that would not be available to lower-income people.
For example, wealthy people may have access to exclusive clubs, events, and organizations that can provide opportunities for networking and socializing with other successful people.
Financial Independence: Money as a Means of Freedom
Many aspire to achieve financial independence, supporting themselves without relying on others.
Financial independence provides a sense of freedom, allowing people to pursue their passions and live on their terms.
The desire for financial independence often motivates people to start businesses, work hard to earn promotions, or invest in income-generating assets.
The U. S. is one of the most overworked nations in the world. However, American workers have been curtailing their work habits lately.
They no longer want to work crazy long hours until full retirement age, 67 or 66, for those born from 1943 to 1954.
The chief example is the popularity of the Financial Independence Retire Early (FIRE) movement, which prioritizes investing and savings. The FIRE movement’s disciples’ goal is to save 50% or more of their income so they can retire early.
Conclusion
Money is a powerful motivator that can influence our behaviors and attitudes in various ways. Money can provide many benefits, whether the desire to accumulate wealth, meet basic needs, or achieve a higher social status.
However, it is crucial to recognize that money is not the only motivator; many other factors can influence our behaviors and attitudes.
Ultimately, the key to understanding money motivations is to recognize that they are complex and multifaceted and can vary significantly from person to person.
Brooklyn Rapper Fabolous, aka Loso, said best: “Money can’t buy happiness, but it’s a damn good down payment.”
Senior Accounting & Finance Professional|Lifehacker|Amateur Oenophile
RELATED ARTICLES
Roth IRA vs. Roth 401(k): Which Is Better for You?
The estimated reading time for this post is 183 seconds Roth IRA vs. Roth 401(k): Which Is Better for You? As the adage goes, the early bird catches the worm. When it comes to planning for retirement, nothing could be...
Traditional 401(k) vs. Roth 401(k): Which Is Better for You?
The estimated reading time for this post is 181 seconds Traditional 401(k) vs. Roth 401(k): Which Is Better for You? When it comes to planning for those golden years of retirement, you have numerous tax-deferred accounts you can use to...
Leave Comment
Cancel reply
Roth IRA vs. Roth 401(k): Which Is Better for You?
Traditional 401(k) vs. Roth 401(k): Which Is Better for You?
The Imminent Crisis in the U.S. Auto Loan Sector
Gig Economy
American Middle Class / Sep 23, 2023
Roth IRA vs. Roth 401(k): Which Is Better for You?
The estimated reading time for this post is 183 seconds Roth IRA vs. Roth 401(k): Which Is Better for You? As the adage goes, the early...
By Article Posted by Staff Contributor
American Middle Class / Sep 15, 2023
Traditional 401(k) vs. Roth 401(k): Which Is Better for You?
The estimated reading time for this post is 181 seconds Traditional 401(k) vs. Roth 401(k): Which Is Better for You? When it comes to planning for...
By MacKenzy Pierre
Finance / Sep 13, 2023
The Imminent Crisis in the U.S. Auto Loan Sector
The estimated reading time for this post is 188 seconds Navigating Through Unsteady Lanes: The Imminent Crisis in the U.S. Auto Loan Sector American consumers are...
By MacKenzy Pierre
Credit Cards / Sep 11, 2023
Mounting Credit Card Debt Sends Shockwaves Through U.S. Economy
The estimated reading time for this post is 171 seconds Mounting Credit Card Debt Sends Shockwaves Through U.S. Economy In a sobering financial milestone, Americans now...
By MacKenzy Pierre
Finance / Sep 09, 2023
Rising Mortgage Rates Send Shivers Through the Housing Market
The estimated reading time for this post is 151 seconds Rising Mortgage Rates Send Shivers Through the Housing Market In a stark and unrelenting turn of...
By MacKenzy Pierre
Finance / Sep 04, 2023
Fixed-Income Boom
The estimated reading time for this post is 280 seconds In the midst of a Fixed-Income Boom, Do Active Wealth Managers Still Hold Sway? In this...
By MacKenzy Pierre
Gig Economy / Sep 03, 2023
America’s Evolving Work Tapestry
The estimated reading time for this post is 168 seconds America’s Evolving Work Tapestry: Stability Amidst Shifting Sands In the intricate tapestry of the American economy,...
By MacKenzy Pierre
American Middle Class / Aug 14, 2023
What is Exactly Maxing Out a 401(k)?
The estimated reading time for this post is 401 seconds Maxing out a 401(k) might sound like financial jargon, but it’s a simple concept that could...
By MacKenzy Pierre
Global Middle Class / Aug 12, 2023
The Interest-Free Installments Economy
The estimated reading time for this post is 264 seconds The Interest-Free Installments Economy: A Macro Perspective The Brazilian government has been attempting to curb revolving...
By MacKenzy Pierre
American Middle Class / Jul 27, 2023
Smart Approaches to Money Management
The estimated reading time for this post is 198 seconds Guiding Your Financial Journey: Smart Strategies for Effective Wealth Management Mastering the complexities of your personal...
By Article Posted by Staff Contributor
Latest Reviews
American Middle Class / Sep 23, 2023
Roth IRA vs. Roth 401(k): Which Is Better for You?
The estimated reading time for this post is 183 seconds Roth IRA vs. Roth 401(k):...
American Middle Class / Sep 15, 2023
Traditional 401(k) vs. Roth 401(k): Which Is Better for You?
The estimated reading time for this post is 181 seconds Traditional 401(k) vs. Roth 401(k):...
Finance / Sep 13, 2023
The Imminent Crisis in the U.S. Auto Loan Sector
The estimated reading time for this post is 188 seconds Navigating Through Unsteady Lanes: The...