Many people think life would be peachy if they were rich. They wouldn’t have to work or worry about money or anything else, because there’s no problem their money couldn’t solve. But is it really all that great? I thought about it and I’m not sure being rich is all it’s cracked up to be. The research backs this up: once you’ve achieved a minimum level of financial well-being, accumulating more money doesn’t make you any happier. In fact, studies show even the wealthy are obsessed with keeping up with the Jonses and are equally depressed when they fail. It’s all relative. As you can see from my little brainstorm session below, it seems like wealth actually INCREASES financial worries instead of alleviating them.
Pros
- Freedom to do what you want when you want to do it
- Access to better health care
- Greater creature comforts
- Nice house, nice car
- Send your children to prestigious private schools
- Higher social status
Cons
- Increased fear of lawsuits and identity theft*
- Boredom (for those who retire early)
- Fear of not being able to teaching their children to appreciate the value of a dollar*
- Not being able to get ahead (ironically, the biggest fear of the wealthy is not being able to improve their current status)*
- Balancing family and business: it’s hard to spend time with your children if you’re busy running the family empire 7 days a week*
- Paranoia of losing it all*
Can you think of any Pros or Cons I’ve missed? I’m sure there are many.
*Source: Forbes
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3 responses so far ↓
1 ericabiz // Mar 27, 2008 at 1:08 am
Hi Kyle!
I actually wrote a blog post about this phenomenon when I sold my business and “temporarily retired” last year.
http://www.erica.biz/2007/hitting-the-jackpot-doesnt-mean-instantly-becoming-happy/
I did buy a new car (mine was old) and some nice artwork, but besides that, little in the way of “creature comforts” has changed. I still spit a 960sq.ft. 3BR duplex with my boyfriend, and, in fact, went through a huge “stuff purge” since I hadn’t done a huge cleaning spree in ages.
As far as “retirement” goes (which I put in quotes because I now do a lot of blogging and am organizing a conference), I think the best thing about it is that it really gave me time to focus on what I wanted out of life. Taking 6 months completely off, with little fear of how to pay for things, has changed my perspective and I’ve grown immensely. At first I found myself bored, but now I buy a ton of books on Amazon, work out 3x a week, blog, go to conferences, go out to lunch and dinner with interesting people, and plan my conference. I have more freedom now and I hope to never have to trade that for a job I don’t love.
To me, the pros far outweigh the cons. If I do start working full-time again, it will be for something (some thingS?) that I am truly passionate about, instead of just for a paycheck. I will work because I love what I do, with no obligation other than to myself, my goals and my commitments. It is a feeling that is unmistakably bliss, and something I strongly believe that others should strive for. To that end, I’m encouraged to see you striving for financial freedom as well. Keep it up…you won’t regret it.
P.S. I decided to not buy a house until 2010 (most likely) since the market here in CA is tanking and it would be twice as expensive to own as to rent. I’d rather invest my money and live off the proceeds.
-Erica
2 Weekend Link Love 3-29-08 | Amateur Asset Allocator // Mar 29, 2008 at 8:20 am
[...] Jackpot Doesn’t Mean Becoming Instantly Happy by Erica Douglass I wrote a short post on the pros and cons of being rich earlier in the week. Well, Erica actually managed it. Her post is much better than mine. You should [...]
3 Sairah // Apr 4, 2008 at 3:08 pm
I’ve always felt that being ultra-rich is more of a pain than a help. I just don’t want to worry about money- gaining or losing it, equally.
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