Derek Hagen, CFA, CFP®, FBS®, CFT™
“A successful marriage is about compromise. She wanted a cat, I didn’t. So we compromised and got a cat.” -unknown
Life isn’t about maximizing happiness in every area—it’s about balancing priorities and learning when to compromise. But that’s easier said than done. Every decision we make pulls from one area of life to give to another, and it’s not always clear which trade-offs are worth making.
What if we stopped chasing perfection in every part of life and instead focused on making smart compromises? By adjusting the “sliders” in our lives, we can optimize happiness across the board.
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Satisfaction in Various Life Domains
Happiness isn’t a one-size-fits-all experience. We have multiple life domains, such as work, family, health, leisure, and relationships. Often, we’re more satisfied in some areas than others. For instance, you might feel content with your family life but frustrated at work. Or maybe your health is thriving, but you’re not spending enough time with friends.
As humans, we tend to strive for maximum happiness in all areas—a perfect score across the board. But life doesn’t work that way. Each domain demands time, energy, and resources, and there are only so many hours in a day. Trying to maximize every slider is not only unrealistic but also exhausting.
Balancing Life Domains
Achieving balance requires compromise, and compromise often involves giving something up. This is where the concept of loss aversion comes into play. Loss aversion is the idea that losing something feels worse than gaining the same amount feels good. For example, losing $20 feels worse than finding $20 feels good.
When faced with a compromise, the idea of giving something up can feel painful. It’s easy to focus on what we’re losing rather than what we might gain. But compromise isn’t about loss—it’s about trading something of lesser importance for something of greater value.
Imagine you’re deciding between spending more time on your hobby or with your family. You might need to pull back on leisure satisfaction to invest more in your family life. While this might initially feel like a loss, the larger gain in family happiness can more than make up for it.
Compromise requires seeing the big picture. When we focus too narrowly on one life domain, we lose sight of how our choices impact our overall happiness. Instead, think of it as a balancing act: by lowering one slider, you free up resources to raise another.
Compromise is not about settling; it’s about optimizing. The goal isn’t perfection; it’s finding a balance that works for you. Sometimes, giving up a little in one area can lead to far greater happiness in another.
Life is about choices. While it’s tempting to chase maximum happiness in every domain, true satisfaction comes from knowing where to invest your time and energy. By embracing compromise and seeing trade-offs as opportunities, you can create a life that’s not perfect in every area but deeply fulfilling overall.
Next time you face a tough decision, ask yourself: What am I gaining? What’s worth the trade? When you take the time to adjust your sliders with intention, you’ll discover that compromise isn’t a sacrifice—it’s a strategy for optimizing happiness.
Want to Learn More?
Money Quotient trains financial professionals in the True Wealth process and helps them implement the concepts into their practices. The first step is to learn about the Fundamentals of True Wealth Planning.
This post originally appeared on Meaningful Money.