Stealth Wealth Secrets: 10 Tips for Living a Rich Life in a Low-Key Manner
Stealth Wealth Secrets: 10 Tips for Living a Rich Life in a Low-Key Manner
Crystal Maye Thu, July 27, 2023
Stealth wealth, as explained by Experian, is all about financial privacy. In today’s society, broadcasting wealth on social media or even just among coworkers and friends can make you a target for exploitation. Whether bad actors attempt to hack your accounts or loved ones come with their hands out, showcasing your earnings may have unfortunate consequences. Keeping information about your income and assets private can help protect you from a wide range of uncomfortable and potentially unsettling situations. Individuals who practice stealth wealth often have significant amounts of money, but few people know about it. They keep it under wraps in order to safeguard their assets.
Stealth Wealth Secrets: 10 Tips for Living a Rich Life in a Low-Key Manner
Crystal Maye Thu, July 27, 2023
Stealth wealth, as explained by Experian, is all about financial privacy. In today’s society, broadcasting wealth on social media or even just among coworkers and friends can make you a target for exploitation. Whether bad actors attempt to hack your accounts or loved ones come with their hands out, showcasing your earnings may have unfortunate consequences. Keeping information about your income and assets private can help protect you from a wide range of uncomfortable and potentially unsettling situations. Individuals who practice stealth wealth often have significant amounts of money, but few people know about it. They keep it under wraps in order to safeguard their assets.
For many people, stealth wealth may be one of the best ways to handle your money and create a stable financial future. Here’s what you need to know about the money trend.
What Is Stealth Wealth?
It’s unclear when the trend started, but in 2008 at the height of the Global Financial Crisis, the Tampa Bay Times reported on the effect that the downward economy had on recently minted millionaires.
As it noted, millionaires weren’t as ready to flaunt their riches as their predecessors. Many of them were living more reserved lifestyles, patiently waiting for the economy to turn around. They held onto their wealth instead of spending it on material things and those that did were greatly rewarded.
Fast forward 15 years and many of the OG stealth wealthers have kids who are coming of age or entering adulthood. They have likely learned from their parents’ financial practicality and played coy with their net worth. Whether they have established a name for themselves in business or simply live off of family money, they aren’t as willing to showcase their wealth to the world.
Why More People Are Choosing Stealth Wealth
As during the Global Financial Crisis, we currently find ourselves in a period of economic instability and uncertainty. To avoid financial hardship, people must take a long look at their lifestyles and how they spend money. By living a more fiscally responsible life, they can ensure stability in the future when the economy begins to turn around.
Practicing stealth wealth now can help you withstand any market fluctuations. It can help you provide for your family and allow you to live comfortably without the worry that people will come to you when they need money. Stealth wealth takes a different mindset, but it is not impossible to achieve.
To continue reading, please go to the original article here:
Top 3 Family Money Disputes — And How To Solve Them
Top 3 Family Money Disputes — And How To Solve Them
Heather Taylor Wed, July 26, 2023
I’m a Will and Trust Attorney: These Are the Top 3 Family Money Disputes — And How To Solve Them
As the United States enters one of the greatest wealth transfers in history, it is not unusual to hear about families experiencing money disputes. Family members may let their emotions get the better of them and find themselves stuck in arguments, fights and disagreements regarding a wide range of financial issues. In worst-case scenarios, these disputes can lead to acts of physical violence or never reach a resolution.
Top 3 Family Money Disputes — And How To Solve Them
Heather Taylor Wed, July 26, 2023
I’m a Will and Trust Attorney: These Are the Top 3 Family Money Disputes — And How To Solve Them
As the United States enters one of the greatest wealth transfers in history, it is not unusual to hear about families experiencing money disputes. Family members may let their emotions get the better of them and find themselves stuck in arguments, fights and disagreements regarding a wide range of financial issues. In worst-case scenarios, these disputes can lead to acts of physical violence or never reach a resolution.
GOBankingRates spoke to Mitch Mitchell, associate counsel, estate planning at Trust & Will, about the primary sources of contention that lead to money disagreements among family members. Here’s how families can solve these top money disputes.
Distribution of Inheritance
Money disputes often arise during the estate planning process, particularly with the distribution of an inheritance. If a loved one passes away and leaves behind assets, family members and siblings may disagree on how to divide an estate. And if there’s no clear will or estate plan, it only adds to the confusion and increases overall disputes among family members.
Another aspect to consider is the role of family dynamics. Mitchell said siblings might have different interpretations of their parents’ intentions, which can lead to disagreements and conflicts over how assets should be properly managed and distributed. Some parents also distribute their assets unequally among their children. Even if they have their own reasons for doing so, Mitchell said unequal distributions can create tension and animosity among family members.
Incapacitated Family Members
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/m-trust-attorney-top-3-184913381.html
CFPB Fines Bank of America What That Means For You
CFPB Fines Bank of America What That Means For You
Tue, July 25, 2023
The Consumer Financial Protection Bureau on July 11 fined Bank of America for three types of transgressions against its customers, each costing consumers money and time. We've seen similar transgressions at many other banks over the years, and we are likely to see more in the future.
Here are a few simple steps consumers can take to help them avoid being victimized by their banks.
CFPB Fines Bank of America What That Means For You
Tue, July 25, 2023
The Consumer Financial Protection Bureau on July 11 fined Bank of America for three types of transgressions against its customers, each costing consumers money and time. We've seen similar transgressions at many other banks over the years, and we are likely to see more in the future.
Here are a few simple steps consumers can take to help them avoid being victimized by their banks.
Avoid NSF/Overdraft Fees
The first BofA transgression cited by the CFPB involved non-sufficient funds (NSF) fees. An NSF fee occurs when there's not enough in an account to cover a transaction. Banks will typically decline a transaction because of insufficient funds and charge the customer an NSF fee.
The problem with what BofA did wasn't that it charged an NSF fee, but that is charged multiple NSF fees for the same transaction. BofA's NSF fee was $35. When this charge was unfairly applied multiple times, the total fee amount quickly rose to a burdensome level.
NSF charges and overdraft charges — the fee applied when an account is overdrawn and the bank covers the transaction charge on the customer's behalf — are common fees at banks.
The good news is that many banks, including BofA, have made their NSF/overdraft fee policies more consumer friendly in the last few years. So if you make a mistake by not having enough in your account to cover a transaction, the fees shouldn't be as costly as what BofA customers experienced. Nevertheless, NSF/overdraft fees can still be costly, and it's important to avoid them.
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/cfpb-fines-bank-america-means-172224126.html
If a Family Member Dies, Which Debts Will You Be Responsible For?
If a Family Member Dies, Which Debts Will You Be Responsible For?
Vance Cariaga Mon, July 24, 2023
One thing to know about debt is that it doesn’t go away — even after the death of the person holding it. When someone dies, their debts and assets typically pass to their estate, according to the Consumer Financial Protection Bureau (CFPB). The estate is responsible for paying any unpaid debts. If there is no money or property left, then under most circumstances the debt will not be paid. As a general rule, no one else — including family members — is required to pay the debts of someone who died, according to the CFPB. That’s not always the case, however.
If a Family Member Dies, Which Debts Will You Be Responsible For?
Vance Cariaga Mon, July 24, 2023
One thing to know about debt is that it doesn’t go away — even after the death of the person holding it. When someone dies, their debts and assets typically pass to their estate, according to the Consumer Financial Protection Bureau (CFPB). The estate is responsible for paying any unpaid debts. If there is no money or property left, then under most circumstances the debt will not be paid. As a general rule, no one else — including family members — is required to pay the debts of someone who died, according to the CFPB. That’s not always the case, however.
In some cases, surviving family members might be responsible for paying certain debts of the deceased. This largely depends on the type of debt and where you live. For example, shared debts might fall on the shoulders of survivors in the following scenarios:
You were joint account owners.
You borrowed the money as a co-signer.
You are a surviving spouse and live in a community property state where spouses share responsibility for certain marital debts.
Your state has “necessaries statutes” that make parents and spouses responsible for certain necessary costs such as healthcare.
In community property states, spouses are “considered joint owners of nearly all assets and debts acquired in marriage,” according to a 2022 blog on the Experian website. The vast majority of states use a different “common law” model that allows spouses to own property individually. The type of law your state follows dictates how property is divided upon divorce or death.
Experian lists only nine community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. Three states — California, Nevada and Washington — also have community property law for domestic partnerships that might not involve marriage.
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/family-member-dies-debts-responsible-121502138.html
The Dark Side of Money
The Dark Side of Money
Jacob Schroeder Jul 24, 2023
What we can learn from the ways money brings out the worst in us
Last year, the YouTuber Mr. Beast posted a Twitter poll that revealed an evilness lurking in our relationship with money.
As you can see, almost half the respondents said “Yes.” Yes, to the death of a person – who could be a devoted parent, an innocent child, the world’s leading cancer researcher, or Tom Hanks – for $10,000, about the worth of a used Honda.
It’s proof that money has power. The power to take our lives – with diligent saving and patient investing – to great heights. But also the power to lead us to some dark places.
The Dark Side of Money
Jacob Schroeder Jul 24, 2023
What we can learn from the ways money brings out the worst in us
Last year, the YouTuber Mr. Beast posted a Twitter poll that revealed an evilness lurking in our relationship with money.
As you can see, almost half the respondents said “Yes.” Yes, to the death of a person – who could be a devoted parent, an innocent child, the world’s leading cancer researcher, or Tom Hanks – for $10,000, about the worth of a used Honda.
It’s proof that money has power. The power to take our lives – with diligent saving and patient investing – to great heights. But also the power to lead us to some dark places.
Perhaps, that’s where the best financial lessons lie.
When discussing how dark experiences acted as life’s greatest teacher, endurance athlete and former Navy SEAL David Goggins said: “There are no answers in the light… knowledge comes from the muck.”
The same rings true for money; financial knowledge often comes from unfortunate events — job loss, market crashes, bankruptcy, fraud, et al. Most finance books and articles tell us we deserve financial success. Less frequent are those that help people identify their own toxic relationships with money as a route to personal growth. Fortunately, we can learn from the experiences of others.
For instance, I’ll briefly tell you why I don’t gamble. It’s not that I think gambling is a waste of money (which I do), or that I think the “games” are boring (which I do), or that I think of casinos as pitiful dungeons soiled with the stench of stale cigarette smoke and desperation (which I also do). It’s because it reminds me of the tragic death of a family.
When I was 18, my best friend called me one day to tell me that a family had been found murdered in their home nearby. This was a quiet, upper-class neighborhood where such tragedies never happened. Out of shock, we drove by the family’s once comfortable home that now resembled the set of a cop show with telltale props and extras – yellow tape, detectives, reporters, coroners.
It turned out the killer was the father. He had been a successful businessman who started to gamble and gamble some more, and then he started to lose and lose some more, until he inevitably lost almost everything. Distraught and at rock bottom, he decided to cash in the last thing he had left, the lives of his family and his own.
The experience taught me how a potentially big financial windfall could influence our psyche, like a siren call toward the rocks and cliffs of financial ruin. And at times, much worse.
I don’t believe money is not inherently evil. But research shows that it can trigger the worst parts of our nature if we let it.
The surprising thing? Unfortunate consequences can arise through both financial strain and abundance. Go too far in either direction, and you end up in the same miserable place.
So, when does money transform from an illusory store of value to an accessory to evil? How do we keep it from ruling over us?
How does this relate to our own financial lives?
Humans may have an inherent sensitivity to fairness, which explains why inequality can feel so stressful and damaging.
Consider a video of an experiment with two capuchin monkeys, our distant relatives often used in psychological tests as human stunt doubles. The capuchins perform the task of giving the experimenter a rock in exchange for a slice of cucumber.
To continue reading, please go to the original article here:
https://rootofall.substack.com/p/the-dark-side-of-money?utm_source=substack&utm_medium=email
First Year of Retirement: 7 Money Moves You Absolutely Must Make
First Year of Retirement: 7 Money Moves You Absolutely Must Make
July 13, 2023 By Nicole Spector GoBankingRates
If you’re near retirement or fresh in it, it’s critical to understand how to manage your financial life, and how it differs from when you were making a salary. To do this, you should make these seven money moves in your first year of retirement — per the suggestions of experts.
Start Tracking Your Expenses
Hopefully, you’ve already made a strict budget and have been tracking expenses leading up to your retirement. Now is the time to really pay attention.
First Year of Retirement: 7 Money Moves You Absolutely Must Make
July 13, 2023 By Nicole Spector GoBankingRates
If you’re near retirement or fresh in it, it’s critical to understand how to manage your financial life, and how it differs from when you were making a salary. To do this, you should make these seven money moves in your first year of retirement — per the suggestions of experts.
Start Tracking Your Expenses
Hopefully, you’ve already made a strict budget and have been tracking expenses leading up to your retirement. Now is the time to really pay attention.
“Take the first few months of your retirement to diligently track your expenses, so you understand where your money is going, and how much you need a month,” said Mark Henry, founder and CEO of Alloy Wealth Management. “It will likely be much different than your pre-retirement expenses, especially if you move. There may be places you can cut back and others where you want to splurge a little more.”
Secure Healthcare Coverage
You may have already sorted out your healthcare coverage, but if not, you need to figure that out sooner than later.
“If you are not eligible for Medicare yet and your employer does not offer continued access to healthcare coverage, you will need to look into alternative options,” said Larry Roby, president and CEO of SFA Wealth Management. “For example, you may use the Health Insurance Marketplace to find a new insurance plan or you might qualify for Medicaid coverage. No matter which route you go, it’s important to get your healthcare coverage in order. Otherwise, you may be one emergency away from depleting your retirement income savings.”
Make Sure Your Retirement Money Is Allocated Properly
To continue reading, please go to the original article here:
The Math That Explains Why Lifestyle Inflation is a Wealth Killer
The Math That Explains Why Lifestyle Inflation is a Wealth Killer
Lifestyle Inflation Is A Wealth Killer By Zach January 24 2019 Four Pillar Freedom
Investopedia defines lifestyle inflation as:
Lifestyle inflation refers to increasing one’s spending when income goes up. Lifestyle inflation tends to continue each time someone gets a raise, making it perpetually difficult to get out of debt, save for retirement or meet other big-picture financial goals. Lifestyle inflation is what causes people to get stuck in the rat race of working just to pay the bills.
Two of the most common reasons for lifestyle inflation include:
The Math That Explains Why Lifestyle Inflation is a Wealth Killer
Lifestyle Inflation Is A Wealth Killer By Zach January 24 2019 Four Pillar Freedom
Investopedia defines lifestyle inflation as:
Lifestyle inflation refers to increasing one’s spending when income goes up. Lifestyle inflation tends to continue each time someone gets a raise, making it perpetually difficult to get out of debt, save for retirement or meet other big-picture financial goals. Lifestyle inflation is what causes people to get stuck in the rat race of working just to pay the bills.
Two of the most common reasons for lifestyle inflation include:
The desire to impress peers and flaunt your success. After that big pay raise or promotion, it’s common to upgrade your house, car, wardrobe, dining habits, etc. to show your peers how well you’re doing in life.
The feeling of “I worked hard so I deserve this.” After all that time spent studying in the library or putting in extra hours at the office, it’s common to feel that you “deserve” to treat yourself with your increased income.
No matter what you believe is the true reason (or combination of reasons) for lifestyle inflation, one fact remains undeniable: lifestyle inflation is a wealth killer.
Here’s the math that explains why.
The Math That Explains Why Lifestyle Inflation is a Wealth Killer
Consider our friend Bob. In his first year out of college, Bob has a net worth of $0, a yearly income of $35,000, and yearly expenses of $30,000.
Let’s assume Bob is able to increase his income by 6% each year while only increasing his expenses by 2% each year.
Here is how Bob’s net worth will grow over the course of 20 years:
To continue reading, please go to the original article here:
https://fourpillarfreedom.com/the-math-that-explains-why-lifestyle-inflation-is-a-wealth-killer/
4 Best Money Lessons From Elon Musk
4 Best Money Lessons From Elon Musk
July 10, 2023 By Yaёl Bizouati-Kennedy
Paris: 2023 Elon Musk Vivatech, France - 16 Jun 2023JEANNE ACCORSINI / SIPA / Shutterstock.com
Elon Musk — still the world’s richest man, with a $243 billion net worth as of July 10, according to the Bloomberg Billionaires Index — is at the helm of several companies. From Tesla to SpaceX, and from Neuralink to The Boring Company — and most recently, Twitter — Musk is no stranger to controversy and is known for speaking his mind. Not everything Elon Musk has done, financially speaking, has been exemplary. However, Musk’s best money moves are at the center of many commentaries, however, and four follow.
4 Best Money Lessons From Elon Musk
July 10, 2023 By Yaёl Bizouati-Kennedy
Paris: 2023 Elon Musk Vivatech, France - 16 Jun 2023JEANNE ACCORSINI / SIPA / Shutterstock.com
Elon Musk — still the world’s richest man, with a $243 billion net worth as of July 10, according to the Bloomberg Billionaires Index — is at the helm of several companies. From Tesla to SpaceX, and from Neuralink to The Boring Company — and most recently, Twitter — Musk is no stranger to controversy and is known for speaking his mind. Not everything Elon Musk has done, financially speaking, has been exemplary. However, Musk’s best money moves are at the center of many commentaries, however, and four follow.
PayPal: An Early Mind for Bold Investing
Musk founded X.com, later named PayPal, and sold it to eBay for $1.4 billion in 2002, according to The Wall Street Journal. He collected $100 million from the deal.
“One of Elon’s best financial moves was placing most of his net worth into Paypal, at a time where the ‘.com’ world was seriously taking off,” said Sebastian Jania, owner of Ontario Property Buyers.
Upon successful growth of this company, he sold it and was paid handsomely — but instead of cashing out of the “entrepreneurship game” and living on the proceeds, he recycled his money into three more businesses which also took off as successes, said Jania.
“This was a very wise decision as he was able to take his successes in the tech industry and diversify across solar, automotive, and space industries. This move protected him in case the tech industry or other industries would crash.”
Musk Reinvests Profits Into his Visions
Elon Musk has made billions of dollars from his ventures but doesn’t all profits on lavish lifestyles or frivolous things, said Anna Koval, co-founder and CMO at Tarotoo.
“Instead, he reinvests his profits into his vision of making humanity a multi-planetary species and advancing clean energy and transportation. This shows his passion, dedication, and long-term thinking, which are essential for any successful entrepreneur.”
8 Ways To Alleviate Your Retirement Anxiety by Fixing Your Finances
8 Ways To Alleviate Your Retirement Anxiety by Fixing Your Finances
Cameron Huddleston Fri, July 21, 2023
If you’re stressed about your retirement plans, it’s probably for a good reason. With economic uncertainty, rising living costs and the ever-changing landscape of retirement benefits, ensuring a comfortable and secure future can feel overwhelming. If you’ve woken up in the middle of the night thinking about your finances, you’re not alone. A recent survey conducted by Allianz Life Insurance found that “61% of Americans say they are more afraid of running out of money than they are of death.”
8 Ways To Alleviate Your Retirement Anxiety by Fixing Your Finances
Cameron Huddleston Fri, July 21, 2023
If you’re stressed about your retirement plans, it’s probably for a good reason. With economic uncertainty, rising living costs and the ever-changing landscape of retirement benefits, ensuring a comfortable and secure future can feel overwhelming. If you’ve woken up in the middle of the night thinking about your finances, you’re not alone. A recent survey conducted by Allianz Life Insurance found that “61% of Americans say they are more afraid of running out of money than they are of death.”
Still, worrying about your money problems won’t make them go away. In fact, it can cause more stress and lead you to make mistakes, said Scott Bishop, partner and managing director at Presidio Wealth Partners.
When you’re drowning in financial uncertainty, it’s time to take stock and make a plan. To rest easier at night, you should try to understand what it is exactly that you’re afraid of. This will empower you to get your finances on track and stop worrying about money. Read on to identify which of the following fears is troubling you.
1. You’re Afraid That You Don’t Understand Your Money Situation
The first step to take to stop worrying about money is to identify your assets — house, investments, savings — and your liabilities, or debts, said Michael F. Kay, a certified financial planner and founder of Financial Life Focus. Once you know what you have and what you owe, you can identify your biggest problem and assess what needs to change. For most people, it’s too little savings and too much debt, he said.
“Before you can stop worrying, you need to know where you stand financially,” Bishop said. “The best way to do that is to get a handle on or snapshot of your current situation.”
2. You’re Worried That You Don’t Know Where Your Money Is Going
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/8-ways-alleviate-retirement-anxiety-170002929.html
7 Costliest Mistakes People Make When Planning Vacations
I’m a Travel Agent: 7 Costliest Mistakes People Make When Planning Vacations
June 5, 2023 By Jacob Wade
It’s vacation season!
With summer in full swing for most of the U.S., you might be putting the finishing touches on your vacation plans. Or you might be planning a winter getaway for later this year. Either way, before you take off on an epic road trip or fly to a desirable destination for some rest and relaxation, you might want to make sure you avoid making these massive travel mistakes.
We tapped Greg Johnson — expert world traveler, travel blogger at ClubThrifty.com and owner of Travel Blue Book Travel Agency — to share his insights on the costliest mistakes travelers make when planning vacations.
I’m a Travel Agent: 7 Costliest Mistakes People Make When Planning Vacations
June 5, 2023 By Jacob Wade
It’s vacation season!
With summer in full swing for most of the U.S., you might be putting the finishing touches on your vacation plans. Or you might be planning a winter getaway for later this year. Either way, before you take off on an epic road trip or fly to a desirable destination for some rest and relaxation, you might want to make sure you avoid making these massive travel mistakes.
We tapped Greg Johnson — expert world traveler, travel blogger at ClubThrifty.com and owner of Travel Blue Book Travel Agency — to share his insights on the costliest mistakes travelers make when planning vacations.
Not Planning Ahead
Failing to plan is planning to fail. Having a plan in place can help alleviate travel headaches and save you money at the same time.
“Most travelers book their vacations a few months before traveling,” Johnson said. “By that time, availability is usually low — which causes prices to rise. Depending on the trip, this can increase your costs substantially.
“To get the best deals, consider booking your trip as early as possible. Prices for flights, resorts and cruises are typically near their lowest when they first become available. By booking 11 to 12 months in advance, you can literally save thousands.”
Being Inflexible With Dates and Destinations
Flexibility is key to saving money while traveling.
“One of the best ways to save on travel is to be flexible with your dates and destinations,” Johnson said. “If you don’t know exactly where you want to go, consider choosing your destination based on the price of flights. Likewise, being able to fly on a Tuesday could save you big money compared to flying on a Friday. The same goes for resorts and cruises.”
He also said, “Do a little price shopping and play with dates before committing to specific travel dates, hotels or cruises. It’s not always possible, but being a little flexible can go a long way.”
Traveling During Peak Times
Peak travel means high prices, period. Johnson advises against it, if possible. “If you can avoid peak travel season, do it. Traveling during shoulder seasons and off-peak times can save you up to 50% on the cost of your trip. Plus, you won’t have to fight as many crowds, which can make your trip much more enjoyable.”
Using a Mobile Phone Without an International Plan
Staying connected when traveling overseas can be costly.
“When you are traveling internationally, be sure that your mobile phone plan offers coverage at your destination before using it,” Johnson said. “Not doing so can be an enormously costly mistake, potentially costing you thousands.
“If you already have an international phone plan, make sure that the country you are traveling to is covered under your plan. If you don’t, call your mobile company and inquire about adding one during your trip.”
Johnson also said, “Cruisers should be sure to turn off their data when not docked in port, as many international plans don’t cover you while sailing in international waters. You could easily rack up thousands of dollars in accidental bills if you’re not careful. We like to flip our phones to airplane mode and use the ship’s Wi-Fi throughout the cruise instead.”
To continue reading, please go to the original article here:
The Economics of Happiness By John Robbins of Baskin-Robbins
The Economics of Happiness By John Robbins of Baskin-Robbins
Research is clear: Money doesn’t buy happiness, reports best-selling author John Robbins. So why do we continue to think that it does?
By John Robbins of Baskin-Robbins JULY 20, 2010
When I was 21, I told my father that I didn’t want to work with him any longer at the ice cream company he co-founded, Baskin-Robbins, and I didn’t want to depend on his financial achievements. I did not want to have a trust fund or any other access to or dependence on his money. I wanted to discover and live my own values, and I knew that I wasn’t strong enough to do that if I remained tethered, even a little, to my father’s fortune.
The Economics of Happiness By John Robbins of Baskin-Robbins
Research is clear: Money doesn’t buy happiness, reports best-selling author John Robbins. So why do we continue to think that it does?
By John Robbins of Baskin-Robbins JULY 20, 2010
When I was 21, I told my father that I didn’t want to work with him any longer at the ice cream company he co-founded, Baskin-Robbins, and I didn’t want to depend on his financial achievements. I did not want to have a trust fund or any other access to or dependence on his money. I wanted to discover and live my own values, and I knew that I wasn’t strong enough to do that if I remained tethered, even a little, to my father’s fortune.
I left Baskin-Robbins and the money my father had made selling ice cream because I didn’t want to live a life of affluence based on a product that could harm people’s health. I also recoiled at the idea of inheriting a life of privilege while so many others had to struggle for their basic livelihood.
I didn’t take the steps I did because I thought money is bad. On the contrary, I believe money is good and important. Without it, it’s impossible to thrive in the modern world and difficult even to survive. But money isn’t a god. It’s something to use. Not something to crave or to worship, and certainly not something that should rule our lives.
There seem to be two schools of thought about the relationship between money and happiness: On the one hand, there are those who say money isn’t that important. “You can only become truly accomplished at something you love,” writes Maya Angelou. “Don’t make money your goal. Instead, pursue the things you love doing, and then do them so well that people can’t take their eyes off you.”
In her camp is the environmental advocate John Muir, who once said that he was better off than the billionaire E. H. Harriman. “I have all the money I want,” Muir explained, “and he hasn’t.”
On the other hand, there are those who say that money is essential, and that there is something spiritually pretentious and elitist about pretending otherwise. It’s not the love of money that is the root of all evil, they would say, but the lack of money.
Maybe money can’t directly buy happiness, but it certainly can buy lots of things that contribute tremendously to happiness. While it is possible to be happy with less, it is far easier to be happy with more. They would argue that those who believe money is not important have probably never watched their children go hungry.
I believe there is truth in both camps. Up to a certain point, money is vital to happiness for almost everyone. It can buy food, clothing, and housing and provide for other basic needs. Once a person’s basic needs are met, though, money takes on a different meaning.
For a family barely scraping by, $500 could be the difference between paying the rent or being evicted—between having a place to sleep and being homeless. To someone more affluent, $500 might simply mean a few hours spent shopping for clothes, or that much more financial security and increased savings.
But what does science tell us about the relationship between money and happiness?
To continue reading, please go to the original article here:
https://greatergood.berkeley.edu/article/item/the_economics_of_happiness/