Self Determination Theory: Money Isn't Everything

A big reason to go 1099 is to make more money.

But the money itself really won't make you happy, at least, long term. You quickly revert to your normal level of happiness, perhaps with a nicer car and a few other lifestyle upgades.

So what will make you feel happy and the sense that your life is meaningful?

Sebastien Junger, writes about exactly this topic his book Tribe.

"The psychological effect of placing such importance on affluence can be seen in microcosm in the legal profession. In 2015, the George Washington Law Review surveyed more than 6,000 lawyers and found that conventional success in the legal profession—such as high billable hours or making partner at a law firm—had zero correlation with levels of happiness and well-being reported by the lawyers themselves. In fact, public defenders, who have far lower status than corporate lawyers, seem to lead significantly happier lives.

The findings are in keeping with something called self-determination theory, which holds that human beings need three basic things in order to be content: they need to feel competent at what they do; they need to feel authentic in their lives; and they need to feel connected to others. These values are considered “intrinsic” to human"

-Tribe: On Homecoming and Belonging by Sebastien Junger

Competence, authenticity, and connection are critical to feeling satisfied and happy.

The modern corporate world has a lot of BS work in it: work that no one wants to do, that doesn't really serve a purpose, and doesn't line up with who you are and who you want to be. The depth of your friendships with your colleagues is likely shallow. If you don't hang out with them outside of work, they aren't truly friends.

My instinctive feeling, when I was a W2 employee, and even now when I'm doing billable work, is to GET OUT!!!

I've never surfed in my life but the idea of opening up a surf shop holds endless appeal as I sit in an office moving things around on a PowerPoint.

We shouldn't just quit like that, but that feeling is important. It means something needs to change.

Going 1099 can be one of those changes. It gives you more flexibility financially and with your time to do what you'd like.

But once you have those things you need to deliberately pursue competence, authenticity, and connection.

Get good at something you like doing. It doesn't have to be the skills you use at work.

Be authentic. Vow to pursue your own hobbies and interests and don't cover up your personality (unless you're a jerk).

Cultivate deep relationships. Spend more time with your family and friends. Become engaged with your community.

Ultimately, those things matter far more than your billable rate.

Want the full playbook? Check out Going 1099.