Don’t aspire to be a billionaire because ‘it won’t get you anything’ – here’s what to do with money instead of hoarding it, says Scott Galloway

During his appearance on Simon Sinek podcast”A little optimism“, Galloway shared his philosophy on money and happiness, arguing that accumulating wealth beyond a certain threshold brings no additional satisfaction. Professor of New York University’s Stern School of Business, who built and Sold multiple multi-million dollar companiesIt offered a frank look at what rich people should do with their wealth​

“Once you hit your number, there’s no reason to be a hoarder…because that’s what makes you happy: spend it,” Galloway said. On the podcast. “I spend so much money it’s amazing. Then you know what I do? I give it away.

“I haven’t increased my net worth in seven years. I looked at my number once I got there 10 years ago, (but) the last seven years, I look at my number and if my net worth has gone up X I did not spend it all, but I gave it away. And you know what? Makes me feel strong like a bull. He said: “I want to beat my chest, it feels so good. Why do you need to be a billionaire? It won’t get you anything.”

A marketing professor presented a different playbook for your money instead of hoarding it in hopes of becoming a billionaire.

“Here’s what you do: You go to Cape Town Hotel With your wife. You do amazing things with friends and family. You take care of your parents. You fly your friends to Aspen to hang out with you. He said: Then anything above that, you give up.

The joy of actually using the money, spending it or donating it, far outweighs any potential upside of being one of the world’s many billionaires, Galloway said. Why? Because, in his opinion, it is fun.

“Overpay the people who work for you. Spend your money like you’re a 1950s gangster diagnosed with cancer. Just live. It’s it. And you know what? You’ll love life.”

What other experts say about the relationship between money and happiness

Galloway’s philosophy is consistent with research conducted by the Nobel Prize-winning economist Daniel Kahnemanwhose studies examined the relationship between income and happiness. A A 2023 study co-authored by Kahneman She finds that for most people, happiness continues to rise with income up to $500,000 a year, although for the unhappy minority, additional income stops improving well-being once they reach $100,000.​

The professor, whose net worth is estimated to be somewhere between $40 million and $100 million, according to StreetHe made his comments to Sinek during a conversation about what he called the “war on youth” — his term for the transfer of wealth from younger to older generations in America.

While he was doing it 2024 TED Talk On this topic, Galloway presented data showing that today’s 25-year-olds earn less than their parents and grandparents did at the same age while carrying unprecedented student debt burdens. On the other hand, there is the concentration of wealth among America’s billionaires. According to the Institute for Policy Studies (Via Inequality.org), the collective net worth of America’s 12 biggest billionaires It now exceeds $2 trillionWhile the richest 1% of Americans own 50% of US stocks and mutual funds.

You can watch the full conversation between Scott Galloway and Simon Sinek below: