Ever heard of the expression itâs in the small things that count?
We all know investing in ourselves pays dividends for a lifetime because education is one of the few things that cannot be taken away from us but no matter how much money you may have, it doesnât mean youâll have the motivation to reach an optimal level of fulfillment so thatâs where the equation fits in.
Money provides a life of more comfort and a safety net in case something flops. Letâs say you loose your job, if you have money, you should be supported by your other income sources or if you get divorced, you still have your other assets such as intellectual property or real estate to keep you afloat.
Money helps relieve an unsettling feeling of becoming broke, lifeâs worst fear especially in America where the government isnât hear to support you. Money can also be powerful and get you closer to what you want but only if you put it to work in the right way.
Sure youâll become elated once you purchase that Ferrari or Gucci bag, but after a few days or even hours, you happiness will plateau because humans get used to things quick.
We crave scarcity but once itâs gone, we realize the grass isnât greener on the other side and material goods require more maintenance, work, cleaning, house keeping, safety and security than if we didnât have the item.
Itâs more of a pain so why keep it?
Money can buy you anything you want but then youâre left with junk to dust and store in a safe risking your privacy. Thatâs why living the stealth wealth frugal minimalist lifestyle isnât only the safest, it is the most reliable and generous.
No matter how rich you may be, you still want to be deserving of a discount but guess what, if you ride up to the furniture store in your Lambo you think youâre gong to get that discount on that RH coach?
Theyâll notice what you drive and although roughly 90% of luxury car drivers either bought their vehicle down with debt or couldnât afford it at all anyways, theyâll assume since you drive that lovely car, you donât need any discount.
Being frugal saves you from friendships too. No one wants to feel less worthy when they are with their rich spoiled friend. They want to be respected and on an even playing field.
As a result, down playing your wealth will help you in life.
If you want that bonus, show you want it. If you want that deal prove it.
Money will mess with your head and isnât what youâre missing. You are missing the game plan, the plan what money CAN really supply you.
Purchased Money
There are many ways money can make your life eaiser. For one, you have more of a security blanket. You are able to pay out of pocket for an expense or go on more vacations and possibly live a simpler life in peace if you choose to do so.
Yet on the other hand, if youâre working for every dollar you make because you have no concept of saving and live an inflationary lifestyle, then you arenât rich.
Rich is about having an appropriate lifestyle that translates into having a portfolio with a moderate risk tolerance, cash allocation, low-cost index and ETFs, diversity throughout and a balance of passive vs active holdings.
Essentially not putting your eggs in 1 basket and individual stock picking will keep you sound.
So before we dive into how money can buy real happiness not junk, letâs uncover how money can help other parts in life.
Relationships
Networking is everything.
After all, network = net worth. Companies are much more willing to hire candidates that were referred by an employee at the firm rather than a random applicant with stellar grades, experience and everything else.
If you want more clients, build up your brand and reputation, get a better job and snag those LinkedIn endorsements, itâs all through hanging out with the right people.
You are the average of the people you are with and money will let you get through the door easier.
The only way you can connect with high performers and industry leaders is either by paying to get into a networking session or fancy luncheon which could cost upwards of 20k, be lucky and sit next to them at a restaurant or in a plane or be friends with them which most of the time requires you to work in the same industry as them.
On the other hand, if you donât have the same profession, money letâs you skip that and can get you that country club membership or attend a special summer camp their kids go to to naturally build relationships from there.
This leads to more opportunities if you play it right.
Similarly to an Ivy League degree or top ACT score, money is hard to use but not if you know what you want and chasing after.
Health
To an extent, money cannot replace or reverse your health and no matter how rich you are, you cannot simply extend your life.
Sure you can look younger through paying $10k for Botox, fillers, surgical Kylie Jenner injections and buy all the green shakes you want but after that, health cannot be changed rapidly.
If youâve burnt yourself out drinking and smoking as a college kid, your lungs, kidneys and brain are already effected and youâll have to deal with the consequences later on in life.
Even if you do have medical impairments, with money, you can afford health insurance which skyrockets the unhealthier you are and also be able to buy premium wellness insurance, all the gym equipment and Pelotons and Weight Watchers and Sakara life diet plans you can get.
You can travel and breathe the freshest air while sipping the most organic low sugar orange juice from your orange tree in California but once again, if you want to be healthy, just eat less.
Money wonât tell you to eat less. It will most likely tell you to do the reverse.
Time
With money, you can skip the lines, order ahead, take those jets and be invisible beyond the crowds yet after a while, sometimes that can even get boring. Sure happiness does stem from getting your time back especially since it is our most precious asset that cannot be replaced and no one values it more than the rich but sometimes âwaisting timeâ by waiting for your turn in line or riding on a bus with others is comforting.
Just my take!
Money Machine
The top 10% usually accumulate their wealth from either building a business and scaling it through passive income and owning intellectual property or working for someone and simply rising the ranks to MD or partner while severely saving their money.
You donât have to be an entrepreneur to earn big you just have to know what you value in life and spend strategically. An IB banker in NYC who spends 90% of their salary on who knows what while paying high taxes has almost nothing left over to reinvest and save while a farmer living in a zero tax state of Florida earning less than half yet spending none is richer.
Itâs not how much you keep rather how much you earn.
Money making is addictive and once you get the hang of it, it doesnât stop. Youâve developed a routine that works and itâs time to just drill at it but donât get cocky.
Although there are countless other ways to earn from drop shipping to e-commerce, blogging, consulting, YouTube, etc., if you want to truly be in it for the long run, building a business that has impact, makes peopleâs lives easier and allows them to save money, time and energy will always win.
Once youâve mastered that, youâve mastered doing anything because after youâve earned your first dollar online, thereâs no going back.
Making money is always easier after youâve done it.
The hardest part is starting and you not only become more confident in what you do after a few iterations, people believe in you because they see your trajectory and sales prospects. They want to do business with you and learn from you even if you are the most boring individual with nothing new to offer.
People cling to those who have been in the business long enough, kept their reputation in tact, are honest and can prove theyâve made themselves out of something.
Brownie points if you started as an immigrant (read here).
Happy Pay
So after all of this networking and business dealings, how can you leverage money to make you genuinely happier?
Sure meeting new people is fantastic and Iâm sure youâll have a fantastic dinner conversation purchasing tickets to meet Ray Dalio, but after that, what about other sources of happiness and fulfillment?
Personally the most happy I get is from my hobbies, doing something that isnât for any purpose besides enjoying and getting better at an activity.
And lump sums or becoming an NFL/NBA player wonât cut it. Most research on this topic has claimed that these winners were significantly unhappier in a few years of winning mainly because 80%+ loose it all since theyâve never dealt with these large sums of money before! If you want to understand the drastic effects of too much money, read here.
Running Away
As humans, we naturally acclimate to new environments. Once we buy something, we immediately want something else and realize life is forever about chasing stuff instead of being grateful for what we already have.
This is called the hedonic treadmill, the idea we are constantly chasing the pleasure of the newest thing.
Thatâs why itâs almost impossible to buy happiness while purchasing bigger and better things always expecting more.
Sure it would be lovely to get that new shiny car or deluxe computer but down the line, joy doesnât stem from those things and thatâs exactly what needs to change.
#1 Donât Expect It To Bring Happiness, Let It Come Naturally
When we devote our time to doing things we enjoy without expecting something in return, we are much more fulfilled with the task and we feel satisfied and content every time. Happiness is more strongly associated with the frequency than the intensity of peopleâs positive affective experiences. Consistency matters. Find the daily moments that bring job and most of the time, they all lie in the free things.
#2 Itâs All Hidden
We are creatures of habit and quickly adapt to change. We are able to change our environments and ways of being if we wanted to but choose not to because we like to be comfortable. Thereâs no point in living if you donât enjoy at least one part of your day and most likely that part of your day where you do find joy is constant.
Identify what you do daily and why you do it. From waking up to putting your head down on the pillow, what captivates you to keep going?
There must be something you do that brings pleasure each and every day. Cling to that and make it prominent.
#3 Upgrade
Rewarding yourself with a treat each day will make you feel proud and keep going. When we give our pets a treat, they perform tricks and listen to our commands. Donât be so stern with yourself. Say thank you for where youâve come and the hard work youâre putting into something.
We regret the things we didnât do, not the things we did do so take the time to reward yourself for the uncomfortable things that you are doing to eliminate regret later on.
You wonât regret it.
#4 Less =Â More
Being grateful and appreciative for what you have is the best way to find true joy. The grass is rarely greener on the other side becuase you have no idea how much people are âfaking it itâll they make itâ and what they are really going through.
People love to go into debt for others in order to impress. Save your time, energy and money (the 3 things mentioned above that people pay for) and donât live to impress someone, impress yourself.
Being a minimalist and valuing less = more is powerful.
True happiness stems from letting go than buying more.
Value what you have and shop around in your closet. I guarantee you that shirt you are intending to buy is what you already have.
#5 Chase People Not Products
A clean space = a clear mind. Donât let products, the hottest trends, fashion styles and fads overwhelm you. You know what you need and are living your life no one elseâs.
Money will allow you to meet those people that you want to learn from and surround yourself with those that help you become a better person but even without that salary, you can still meet incredible people. It starts with taking action, putting yourself out there, being comfortable with the uncomfortable and not caring about what others think about you.
Worrying leads to the illusion of having control yet being helpless is usually better for your mental state. Understanding that what you can control is already inside of you should keep you grounded. Everything else, donât worry about because itâs not worth it.
Happiness is 100% in your control and stems from your mindset. If you think the world wonât become a better place, than it wonât. If youâre positive and understand what you ahem is plenty, then you will be satisfied.
Your trash is someone elseâs treasure. Donât loose sight of what you have because it is more than enough. Comparison is the theft of joy and believing money will solve all your problems is a problem. Let money propel you forward by working on yourself, getting into the right communities, focusing on what you already have and can give and prioritizing yourself is key.
Money is just an excuse. Use it wisely or else all will fail.