What Makes Life Good? It’s More Than Money

What does it mean to truly flourish? Renowned psychologist Daniel Kahneman proposed five key facets of a flourishing life: positive emotion, engagement, relationships, meaning, and advancement. This framework reminds us that a good life isn’t just about what we have, but how we live.

In his book The Soul of Wealth, behavioral finance expert Daniel Crosby expands on this idea by exploring the intersection between money and well-being. He points out that while money can support flourishing, it’s often overemphasized in ways that leave us neglecting what really matters.

So what are the five building blocks of a good life?

1. Positive Emotion – Fun and Joy

Positive emotion refers to our experience of pleasure, comfort, and enjoyment. Money plays its most obvious role here. It can buy leisure, comfort, novelty, and freedom from stress: things that certainly boost happiness.

But Crosby warns of diminishing returns. Once basic needs are met and a certain level of comfort is achieved, the correlation between money and happiness weakens. We may chase more, expecting more joy, but find only temporary satisfaction.

2. Engagement – Deep Work and Flow

Engagement is about being fully immersed in what we’re doing—whether it’s creative work, solving problems, or learning something new. Mihaly Csikszentmihalyi called this state “flow”: a zone where time disappears and satisfaction deepens.

Money can support engagement by giving us time or tools, but it doesn’t create deep work or intrinsic motivation. In fact, over-focusing on money can distract us from the kind of work that brings true engagement.

3. Relationships – Connection and Belonging

Human beings are wired for connection. Healthy relationships provide emotional resilience, happiness, and a sense of belonging. While financial resources can reduce relational stress or allow us to show generosity, money is no substitute for empathy, time, or presence.

In fact, wealth can sometimes hinder relationships, introducing power dynamics, jealousy, or isolation. Flourishing relationships require intentional effort and vulnerability, not just financial support.

4. Meaning – A Purpose Bigger Than Yourself

Meaning arises when we connect our lives to something larger than ourselves. It may be family, faith, a cause, or creative contribution. Research shows that people who find meaning in life are more resilient, optimistic, and satisfied, even during hard times.

Money can fund meaningful initiatives such as charity, volunteer work, artistic pursuits, but it can’t create purpose. In fact, too much focus on financial goals can displace deeper sources of meaning.

5. Advancement – Growth and Progress

Growth, whether professional, personal, intellectual, or spiritual, is fundamental to flourishing. We are most alive when we are learning, evolving, or overcoming challenges.

Financial resources can help fund courses, coaching, or sabbaticals. But true growth requires curiosity, humility, and the willingness to leave our comfort zone. Ironically, comfort (which money can buy) often undermines growth.

It’s easy to over-index on positive emotion (fun, comfort, experiences), the area where money has the clearest influence, and to neglect the other four. But flourishing isn’t a shopping list; it’s a balanced ecosystem. Focusing only on one facet, especially the most monetizable one, limits our well-being.

Crosby’s core message in The Soul of Wealth is this: money is a tool, not the destination. Used well, it supports the things that matter most. Used blindly, it can distract us from the life we actually want.

A Call to Reflect

So, how are you doing in each of these five areas?

• Are you chasing pleasure or cultivating joy?
• Are you working for income or investing in engagement?
• Are you buying gifts or building relationships?
• Are you pursuing status or seeking meaning?
• Are you accumulating more or advancing who you are?

The good life isn’t bought, it’s built. One choice, one connection, one meaningful step at a time. If you’d like help aligning your finances with the kind of life you truly want to live, let’s talk. Flourishing is more than a number, it’s a mindset.

Your Spring Planning Team

Practice Notes:

Spring’s offices will be closed on July 1st in honour of Canada Day. Julia will be taking holidays starting July 25, returning on August 12. We’re also going to try to take Friday afternoons off throughout the summer (wish us luck!)

Spring in the News:

Julia wrote an article for the Globe and Mail outlining why advisors must move beyond transactions with savvier investors into a more transformational relationship. Check out the full article here.

Moolala: Money Made Simple podcast hosted by Bruce Sellery chatted with Julia about what to do and what not to do when you unexpectedly get a large sum of money. Watch the complete podcast here.

Please check out our media page here for videos, podcasts, interviews and more.

Planning News Digest:

• What every parent needs to know about Wealth Planning – Over $1 trillion will soon change hands in Canada, yet many families lack a plan. David Toyne and Julia Chung discuss intergenerational wealth planning on this Steadyhand Coffee Break episode. Watch the full video here.
• Blended families and estate planning can be … a bit of a headache. A bit of a headache. Julia explores estate planning for blended families and shares strategies to navigate tough conversation with the Globe and Mail right here. 
• CBC Kids News: How does inflation work? Julia provided Maya, a young journalist with support in her research for this great video on inflation. No clue what inflation means? Allow May to explain using something pretty sweet: chocolate!

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