A friend is retiring next month and was calling to talk about his retirement plans. She is a senior manager in a big bank and will get a decent pension for the rest of her life. She has two flats in the city where she lives. Her children have gone to work and settled elsewhere. And his only concern throughout the conversation was—do I have enough money to see me? Our relationship with money is quite complex.
How much money will make us happy and secure is not math the equation, Nor is it true that higher revenue Makes us feel safe. Our childhood experiences are an important factor in this equation. I grew up with parents who are so obsessed with keeping accounts that the day ends with fights about expenses or expenses that aren’t accounted for. They would not go to bed without balancing the books. I resolved to never write an account!
On a more serious note, our sense of accomplishment and satisfaction about money can be guided by these implicit lessons as we get older. We can resolve to wear nice clothes or jewelery if we are teased about not having them; Owning a home can be important for someone who has faced a lot of moves and evictions; And so on. Psychologists point out that we can conform to certain behaviors that affected us as children; Or we can simply rebel against them. But our attitude towards money decides how much is enough in our mind.
One of the most talked about factors about feeling rich or poor is peer group comparison. Oddly, studies have shown that neighbors of lottery winners have a higher incidence of debt pile-up. They were trying to live it like their lucky neighbor.
Research says staying in one’s league can be a sensible personal finance choice. We can feel secure and successful if the people we live with earn and live like us, he says. In this age of social media, the definition of companions and companions has changed. Capable of seeing and envying a very large group mainly exhibiting their lives, homes, food, clothes and travels. a feeling of inadequacy about someone Property And these comparisons lead to an increase in income. Social groups address this issue by keeping it somewhat homogeneous so that they celebrate or praise similar issues. One of the dangers of income inequality is the unrest in the society. How does one deal with the question of adequacy of wealth and income? Here are some things to consider.
First, what we do with the income and money we have is more important than how much we have. Pay attention to how you are using your money and take the time to see if it matters to your well-being and satisfaction. Instead of trying to get it all, see if you can allocate money to uses that are important to you. For example, families that prioritize children’s education are happier with their sacrifices when they know the money is being used for something important.
Second, identify safety markers for yourself. allocation of Fund For those uses, even if it doesn’t seem very sensible or important to others. I have met many people who feel satisfied and secure with their bank balance. i will advocate Investment Those passive balances. But I realized that there is some surplus lying there, which shows up everyday while transacting at ATMs or using their phones, which makes them feel safe. The funds invested are stacked elsewhere and do not give the same sentiment. It can be your home or your jewellery; Don’t overdo it, but go ahead and put the money in forms that make you feel secure.
Third, take some time to consider the big expenses and question whether they bring you a sense of satisfaction and happiness. Many of us don’t stop to consider the use of money that really pisses us off and doesn’t offer bang for the buck. Spending is a difficult decision and we tend to repent after spending. From going out for a film to spending time with family, every decision to spend can be dismissed as a waste. Some simply refuse to spend; Some live in denial. There’s a middle ground where you ask if you spend on things that are important to you. Engage in that introspection.
Fourth, it is a good habit to keep money separate in the form of savings and investments. But accumulated wealth may not always bring a sense of well-being and adequacy. Many people have reported that worrying too much about losing what is left, rather than feeling secure about it. Suspicion and miserly behavior among the very wealthy is also well documented. Money that is not used is wasted and money earned without effort can become a source of tension, discord, ill-will and violence as established by many cases surrounding inheritance. Consider the merits of earning and using your money over your lifetime. Do not overdo the will and provide the temporal for seven generations.
Fifth, studies about money and happiness have repeatedly shown that giving is a lasting source of joy and happiness. Seriously consider donating. Even if it is among those who are near and dear to you and in real need you appreciate. You may be able to reach this stage only after you have addressed the other issues we listed regarding your relationship with money. But make it a goal to get there. It’s a purposeful journey to go about having enough to give for security for fear of not having enough money. What you have does not determine whether you have enough or not. What you do with money will inspire feelings of security and satisfaction. If only I had more then that search would be mostly the wrong place to start.
(The author is chairperson of the Center for Investment Education and Learning.)