The Hindu Business Line : Aspiration treadmill

My friend and his wife live in a rich neighbourhood. Both of them draw handsome salaries but do not earn as much as their neighbours, who are primarily business owners. My friend’s wife wants him to quit his job and start his own business so that they improve their standard of living as well.

My friend says that he has spoken with several of his neighbours and none of them seem happier than he is. He wonders why he should quit his job and take the risk of setting up a business. The answer to his question lies in what behavioural psychologists call as the “Aspiration Treadmill”. What is it?

Picture yourself exercising on a treadmill. You are running on the treadmill and yet you are in the same place! That is because the treadmill also runs at the same pace or perhaps faster than you do but in the opposite direction.

Level of aspiration

Now, think of your aspiration. Suppose you want to generate an income of Rs 5 lakh per month. In six months, you achieve your goal. Will you be happy and settle with that income for life?

It is highly unlikely that you will. In the process of earning Rs 5 lakh per month, you also cranked up your level of aspiration. So, your aspiration is now Rs 7.5 lakh per month. In other words, your aspiration level increases with your level of success. Psychologists call this the “Aspiration treadmill”.

What makes the difference

But that does not mean that your happiness index will be the same when you are earning Rs 7.5 lakh as it was when you earned Rs 5 lakh.

Agreed, you may have to work harder and spend lesser hours with family. But it also means that you can take longer vacations to exotic destinations! And that, indeed, makes a lot of difference.

So, my friend was not quite right when he concluded that his neighbours were only as happy as he was. It was just that he had not cranked up his aspiration treadmill yet!

(The author is a Chennai-based investment strategist.)

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