Part 4/8:
This leads to the concept of a “decaying incremental unit of happiness” associated with money, effectively neutralizing the time value of money that is often glamorized in personal finance circles. In simpler terms, as one ages, the same amount of money can provide less joy and meaning compared to when they were younger. For someone with a net worth of $4 million, the prospect of a conservative withdrawal rate of 4%—translating to a comfortable annual income of $150,000—may not contribute to happiness if it restricts them from enjoying life in the present.