The following post is by MPFJ staff writer, Marie. You can read more of Marie’s articles over at her own blog, Family Money Values. Enjoy!
Let’s face it, most of us aren’t part of the elite 1% financially. Many of us live paycheck to paycheck. A lot of us using part of that paycheck to service our debts.
As of 2014, in Canada, the median income was $78,870. However, the average salary in Dec of 2014 was just over $49,000 (Statistics Canada). Canadian consumer debt topped out at $21,348 in early 2016 (CBC News).
Forty Nine Grand isn’t a lot to cover the cost of housing, food, transportation, education, health care and entertainment for the typical family of four, let alone trying to get those debts paid off and put something aside for old age.
Perhaps we struggle through our daily lives, rising groggily for that 5 AM buzzing alarm to hit the road to hang onto that 9-5 job; searching all avenues to find the best prices on the items we need or want to buy; choosing between paying down the credit card or the mortgage; and shopping that garage sale instead of buying retail while wondering how life would be different if we were rich.
Who hasn’t bought a lottery ticket, knowing the odds against winning are substantial? The mere possibility of having gobs of money raises visions of luxury and abundance in our minds.
A Vision of what it is like to be Rich
Just think about it! You would not have to work for a living, someone else would clean your house, mow your grass, and worry about paying the bills. Vacations would be a blast – whether staying at your own vacation villas in different parts of the world, touring the world from the deck of your condo/cruiser or taking off in your private jet for a dinner meeting in another city.
You would never again have to decide whether to pay down the credit card or beef up your savings; wait to buy the latest tech toy; or dream about having your own swimming pool.
The vision is tempting, but is real life as a rich person really going to match that vision? Probably not.
There is a reason that old saying ‘The grass is always greener on the other side of the fence” is still around. Even Royals may wonder – as in the musical Camelot when GUENEVERE sings:
” What else do the simple folk do To help them escape when they’re blue? and King Arthur answers:
“They sit around and wonder what royal folk would do And that’s what simple folk do”
Wondering how the other half lives is a prime pastime, allowing folks like Robert Frank (CNBC & Secret Lives of the Super Rich host) to even make a good living from exploring the topic publicly.
What being rich can mean
Becoming rich won’t make you a new person. Being rich won’t fix most of the things you feel are wrong in your life. Rich or poor, we all have issues. We all make good and bad choices. The rich just have more opportunity to make the bad ones!
What can be good about being rich
You have financial independence – no more trudging to that boring 9 – 5 job each day. You can do what you want, when you want (as long as you know what you want!). Riches usually bring a level of comfort to your situation. It reduces stress to know that you have the backing to keep your life from tanking if a few things go wrong.
You have the financial ability to pursue multiple interests.
Lets face it, sometimes pursuing opportunities, hobbies or interests costs money. You can set yourself up in your own business, move to that elite neighborhood so the kids can team up with neighbors in the know; start that charitable organization to help out your favorite cause or buy and restore that vintage auto.
Being rich provides opportunities to help others. Money can help you make a difference in your world – allowing you to sponsor the education of a child in your area; helping out that senior who can no longer get out to maintain her home; or even just shoot off a check to your favorite political candidate.
Money helps you make more money.
It can be a great passive income generator if you invest smartly – allowing you to maintain your new level of wealth and perhaps even pass it along to your next generation.
Riches can solve problems.
Having plenty of money may help alleviate some stress and help you sleep better – no more staying up worrying about paying the bills.
Wealth allows you to get where you need to be. You don’t have to plan months ahead to catch a flight or get to that event – you have the backing needed.
If you have medical issues, wealth can help. You can afford that special medicine or ignore the constraints of insurance. In fact you may decide to enlist special health care, such as concierge doctors.
Some of the potential negatives rich people may experience
No matter how rich you are, it is probable that you can’t have all of the things you want all of the time. Like the rest of us, you are limited to enjoying some of the things you want (but maybe all of the time) or all of the things you want (but maybe just some of the time). Rich people still have to make choices about what they spend.
Being rich might make you a target.
Many really wealthy folks try to hide their wealth, attempting to avoid situations where relatives, friends and strangers ask for money.
Rich folks may have security issues.
Depending on wealth level and general public knowledge of their wealth, the rich may need to have safe rooms, bodyguards and may worry about their children being kidnapped and held for ransom.
Wealth can make you subject to lawsuits.
It is an unfortunate fact that the world is full of unscrupulous folks who might make unjustified accusations about you – filing lawsuits to try for some of your wealth.
Some rich folks work long hours at high stress jobs.
If you earned your wealth, there is a good chance you have been and will continue to put in long hours to keep the money flowing. Work life balance remains out of kilter and health issues can result. Time away from home affects family life and relationships. In fact, it can be a major complaint for children of first generation wealth producers. They don’t really develop typical relationships with the earning parent. That parent is not there. The child is raised by surrogate parents, like nanny’s or sitters and can only see the parent from afar.
Having money may result in behavioral expectations.
The sad story of Princess Diana comes to mind. The Queen, the Prince and others in the royal household had definite expectations about how she should look, speak and behave as well as the kinds of activities in which she should engage. If expectations don’t match your desires, problems result.
Privacy may be at a premium.
Not only may you be surrounded at all times by household or other employees, you may also be subjected to pestering by the press, or the public. What you do, say, spend on or wear may become news!
Managing household employees may not be your cup of tea.
Although it might be great to never have to dust or clean out a toilet bowel, I doubt if it is much fun interviewing or managing maids, gardeners, butlers and the like. Having to let someone go is a stressful event, yet you can’t allow shoddy work, right?
You may lose your sense of worth or purpose.
If you become rich, you may find that striving for money and having it are two different feelings. While you are striving, you are working towards a goal, making an accomplishment happen. Once you are there, you may look around and say, so – now what.
Your kids may grow up spoiled.
Giving children everything even before they think of wanting it can lead to a sense of entitlement. How do you raise grounded kids when you are rich? What is your logical stance for having them learn the value of work – when you pay other people to do yours?
People may treat you differently.
Stories of lottery winners losing life long friends abound. People knowing about your wealth can make them treat you differently, or cause them to expect you to behave differently (like pick up the tab for everything!). Former friends may start to exclude or ignore you. You may be treated with (undeserved) obsequious behavior by strangers in hopes of favors.
You may either give up some control over finances or spend a lot more time managing investments.
Having money brings the responsibility for making sure it is managed well. Doing it yourself may eat up more time that anticipated. Having someone else do it results in a loss of control and a less than desirable sharing of private information.
You aren’t inhibited financially from making really bad life choices.
If you have a propensity for drinking, gambling or drugs, finances are no longer an issue. You may find yourself deep in an addiction cycle.
Likewise, you can’t blame a lack of funds for avoiding pursuit of opportunities that come your way.
Although many of us think we want riches, having them isn’t all cake and pie. Money is only a tool. It won’t make you a better person, give you everything you want or make your life paradise.
So, are you sure you really want that the rich life?
***Photo courtesy of https://www.flickr.com/photos/jayphagan/8610311915/
