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Gratitude Is the Key to Financial Success

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The coronavirus pandemic disrupted our lives in ways most of us never imagined could be possible. COVID-19 didn’t just affect us physically. It also affects us emotionally and financially. Yet not all these effects were bad. It also prompted us to feel grateful. For some, gratitude was a coping mechanism. For others, gratitude meant focusing on what they had instead of what they lost.

We’ll be very happy to let go of many habits we developed during coronavirus lockdowns. But this habit is not just one to keep. It’s also one to apply to other areas of your life. Gratitude for what you have alters your financial perspective in several ways. After all, financial success often isn’t about getting more. Instead, financially successful people usually know how to hold onto what they have. An attitude change could unlock this secret in your life.

Direct Effects of Gratitude

Most advertisers attempt to trigger emotional responses which prompt people to buy certain products. For example, many car commercials say almost nothing about the vehicle advertised. Instead, the commercials focus on product use, like fun road trips, which trigger that emotional response.

Gratitude redirects these emotional responses. If you are grateful for the vehicle in your garage and the road trips you’ve been on, you are less likely to reach out to a dealer. 

Instant gratification impulses are a related issue. When you drive by a fast-food restaurant on your way home after a long day, you are most likely tempted to pick up dinner. This decision is also rather easy to rationalize. Latent advertising effects remind us of the convenience that fast food offers.

Gratitude eases these temptations. One recent study indicated that gratitude increases patience and makes delayed gratification more appealing. On a related note, gratitude decreases impulse buying. The carefully-displayed products at grocery stores look much less appealing if you are grateful for the food which is already in your refrigerator.

Hedonic Adaptation is a closely-related concept. Essentially, we all have a base happiness level. Life’s ups and downs do not permanently change this baseline. We simply feel better, or worse, for a brief period of time. Admittedly, that “brief period of time” could seem like an eternity in some cases.

So, gratitude helps you avoid the buying-happiness trap. Once we realize that acquisition is just a quick fix, we normally look inward for happiness.

There are other direct effects as well. For example, gratitude usually increases generosity. In this context, “generosity” doesn’t necessarily mean giving things away. Instead, generosity is more about respecting the people in your life who have had a positive impact. This respect usually prompts people to make a positive impact in other people’s lives.

Such generosity always comes back to you. Some people call it karma. Others call it reaping what you sow or paying it forward. This benefit could be financial. Generosity also makes you memorable to others, so they are more likely to think of you when they are hiring, need a contractor, and so on.

“Remember, happiness doesn’t depend upon who you are or what you have; it depends solely upon what you think. So start each day by thinking of all the things you have to be thankful for.” – Dale Carnegie

Indirect Effects

As mentioned, gratitude is often related to respect. This respect includes self-respect. Several studies suggest that grateful people have better diets, exercise more, sleep better, and otherwise take care of themselves. So, they have fewer illness symptoms. Better physical health and lower materialistic impulses is a good combination for anyone.

What does this combination mean to your finances? Gratitude increases productivity. Instead of worrying about your health or your next purchase, you are focused on the task at hand.

Financially successful people usually make good decisions and have strong willpower. Gratitude supports these traits.

There have been a number of delayed gratification experiments over the years. For example, study participants might have a choice between a $50 payment today and a $75 payment in thirty days. These studies consistently show that people who are grateful for what they have and can resist immediate “get more now” impulses are happier and more productive.

On a related note, bosses know how much simple expressions of gratitude increase productivity. One former President of the United States noted that Congressmen and Senators were much more likely to back controversial new proposals if he thanked them for their support of a previous initiative. The evidence is not just anecdotal. One study suggested that such expressions increased a work team’s productivity by 50 percent.

How to Be More Grateful

Knowing the benefits of gratitude is one thing. Incorporating gratitude into your daily life is something else. How can you unlock these benefits and reap the financial benefits they bring?

Toward the end of every day, write, don’t type, five events or things that you are grateful for. The items themselves aren’t necessarily important. These lists help convince us that overall, life is pretty good. That understanding is usually the foundation of gratitude.

Allow your mood to affect your decisions. When you are feeling good, that’s a good time to make spending decisions. Make an extra IRA contribution or donate some money to charity. Later, if you feel depressed, you are less likely to spend money frivolously, since you have already “spent” it elsewhere.

Finally, focus on the positive aspects of your everyday life. Avoid negative people and negative social media posts. The positive energy these habits generate make it easier to be a grateful person.

Lyle Solomon has considerable litigation experience as well as substantial hands-on knowledge and expertise in legal analysis and writing. Since 2003, he has been a member of the State Bar of California. In 1998, he graduated from the University of the Pacific’s McGeorge School of Law in Sacramento, California, and now serves as a principal attorney for the Oak View Law Group in Los Altos, California.

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The Leadership Shift Every Company Needs in 2025

Struggling to keep your team engaged? Here’s how leaders can turn frustrated employees into loyal advocates.

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In workplaces around the world, there’s a growing gap between employers and employees and between superiors and their teams. It’s a common refrain: “People don’t leave companies, they leave bad bosses.”

While there are, of course, cases where management could do better, this isn’t just a “bad boss” problem. The relationship between leaders and employees is complex. Instead of assigning blame, we should explore practical solutions to build stronger, healthier workplaces where everyone thrives.

Why This Gap Exists

Every workplace needs someone to guide, supervise, and provide feedback. That’s essential for productivity and performance. But because there are usually far more employees than managers, dissatisfaction, fair or not, spreads quickly.

What if, instead of focusing on blame, we focused on building trust, empathy, and communication? This is where modern leadership and human-centered management can make a difference.

Tools and Techniques to Bridge the Gap

Here are proven strategies leaders and employees can use to foster stronger relationships and create a workplace where people actually want to stay.

1. Practice Mutual Empathy

Both managers and employees need to recognize they are ultimately on the same team. Leaders have to balance people and performance, and often face intense pressure to hit targets. Employees who understand this reality are more likely to cooperate and problem-solve collaboratively.

2. Maintain Professional Boundaries

Superiors should separate personal issues from professional decision-making. Consistency, fairness, and integrity build trust, and trust is the foundation of a motivated team.

3. Follow the Golden Rule

Treat people how you would like to be treated. This simple principle encourages compassion and respect, two qualities every effective leader must demonstrate.

4. Avoid Micromanagement

Micromanaging stifles creativity and damages morale. Great leaders see themselves as partners, not just bosses, and treat their teams as collaborators working toward a shared goal.

5. Empower Employees to Grow

Empowerment means giving employees responsibility that matches their capacity, and then trusting them to deliver. Encourage them to take calculated risks, learn from mistakes, and problem-solve independently. If something goes wrong, turn it into a learning opportunity, not a reprimand.

6. Communicate in All Directions

Communication shouldn’t just be top-down. Invite feedback, create open channels for suggestions, and genuinely listen to what your people have to say. Healthy upward communication closes gaps before they become conflicts.

7. Overcome Insecurities

Many leaders secretly fear being outshone by younger, more tech-savvy employees. Instead of resisting, embrace the chance to learn from them. Humility earns respect and helps the team innovate faster.

8. Invest in Coaching and Mentorship

True leaders grow other leaders. Provide mentorship, career guidance, and stretch opportunities so employees can develop new skills. Leadership is learned through experience, but guided experience is even more powerful.

9. Eliminate Favoritism

Avoid cliques and office politics. Decisions should be based on facts and fairness, not gossip. Objective, transparent decision-making builds credibility.

10. Recognize Efforts Promptly

Recognition often matters more than rewards. Publicly appreciate employees’ contributions and do so consistently and fairly. A timely “thank you” can be more motivating than a quarterly bonus.

11. Conduct Thoughtful Exit Interviews

When employees leave, treat it as an opportunity to learn. Keep interviews confidential and use the insights to improve management practices and culture.

12. Provide Leadership Development

Train managers to lead, not just supervise. Leadership development programs help shift mindsets from “command and control” to “coach and empower.” This transformation has a direct impact on morale and retention.

13. Adopt Soft Leadership Principles

Today’s workforce, largely millennials and Gen Z, value collaboration over hierarchy. Soft leadership focuses on partnership, mutual respect, and shared purpose, rather than rigid top-down control.

The Bigger Picture: HR’s Role

Mercer’s global research highlights five key priorities for organizations:

  • Build diverse talent pipelines

  • Embrace flexible work models

  • Design compelling career paths

  • Simplify HR processes

  • Redefine the value HR brings

The challenge? Employers and employees often view these priorities differently. Bridging that perception gap is just as important as bridging the relational gap between leaders and staff.

Treat Employees Like Associates, Not Just Staff

When you treat employees like partners, they bring their best selves to work. HR leaders must develop strategies to keep talent engaged, empowered, and prepared for the future.

Organizational success starts with people, always. Build the relationship with your team first, and the results will follow.

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