There are pros and cons of being wealthy.
According to one survey, the most common answer people give when asked what would improve the quality of their lives is: make more money.We all know rich people who are unhappy.The cliché says that you can't buy happiness.
What is the truth of the matter?80,000 Hours published a piece on the relationship between money and happiness.They look at how much money matters to happiness.It is worth reading.
What is the ideal amount of money for a person to have?It is one thing to think about whether anIncremental X dollars adds to your happiness.If anIncremental X dollars above a certain amount can actually subtract from your happiness through the additional hassle it creates, it is another thing to consider.
The unimportance of pursuing another few million dollars of wealth is a great luxury.A billion people in the world live on a dollar a day or less, and in America the median household income was $54,000.A small percentage of the world population already earns well above those levels of income.
These questions about making money are relevant to a group of people who were fortunate enough to be born in rich countries.A lot of entrepreneurs, financiers, and general business people sacrifice a lot in order to try to make more money.More!More!More!Sean Parker's character in The Social Network said that a million dollars isn't cool.What is cool?A billion dollars.
The pros and cons of life at the "Super Rich" level are interesting because most people default to more is better.I've gotten to know people who need not work another hour in their life to maintain a luxury lifestyle, with all the sometimes-surprising advantages and, yes, hardship, that super wealth can involve.
Being rich is nice.Maybe not for the reasons you think.You will fly private jets.You will eat nice food all the time, you have aides and servants who will save you time.We quickly adapt to these comforts, which psychologists call thehedonic treadmill.You are more likely to compare it to other private planes you have been on, rather than marveling at the fact that you are on your own plane.This is not an anecdote that I am making up.I was on a private jet with a bunch of people and the Hollywood owner was talking about other people's nicer planes.The conversation turned to offshore tax shelters once he and his friends were done with that topic.I began taking notes on the conversation in order to not forget the stereotypically hilarious exchange.
You are more likely to feel like you led a life of meaning when you are rich, as far as I can tell.You will feel like your time on this earth counted for something if you aren't happy all the time.One way to tell if you're happy or not is to look at the day to day bounce of emotions and the meaning you feel when you step back.There is a post on meaning.It's happiness.
How so?The feeling of meaning and making a difference can be seen in concrete ways.Meg Whitman can walk the HP campus and see thousands of employees who support their families thanks to employment at HP, and she can read stories about the millions of people who use HP products every day to be better at their job.She has a sense that her life matters.Fear not, if you don't have a corporate campus to walk around on, you're an options trader and not a builder of things.You can still take actions with a supple bank account.You will get thank you notes from the children at the public school you helped if you write big checks to charity.Your charitable giving will last you a lifetime.Nothing is going to make you feel better.Philanthropy is the best drug I have ever taken.
You can meet anyone in the world if you are rich.The chance to meet other famous people is the best part of being famous.Larry Ellison can summon anyone to his office at will.Gary Becker believed that people are the most addictive thing on the planet.It is an addictive itch that rich people can easily scratch.
If you make it, I think you will get a better shot at meaning and happiness if you befriend cool people.
Youth who dream of vast wealth are often admonished by wise people to be careful what they wish for.One month ago, Kevin Kelly, one of the most interesting men in the world, said, "You don't want to have a billion dollars."You really don't.
There is always the question of whether Kelly and I are just being self-protective.We are not billionaires and will never be.We like to tell ourselves that we will never be able to get what we want.I think there is something to Kelly's advice.
Having money is not what it used to be.That is a fact of the modern age.Fresh food, medicine, information, a safe childbirth, and other privileges were enjoyed by the ultra wealthy just 100 years ago.There is a small difference between the rich and the middle class in terms of quality of life.Americans will not die in childbirth today.Virtually all of us have access to good cheap food, can fly anywhere in the world for less than a thousand bucks, and can use a click of the mouse to access everything.What average people in America share with Bill Gates is more significant than what we don't.Gates has a bigger house than you or me, but we are the same.
Any person you befriend while you are atop a perch of power is just trying to get something from you, and suspicion alone is enough to careen a relationship.President Obama declared "no new friends" upon entering the White House.An old friend who you considered a peer asks you for a loan to make a house payment, and suddenly there is a hard-to-ignore power dynamic.Something changes when you see jealousy in the eyes of people you know.
Changes in the nature of your relationships can make you lonely.Being rich can be lonely because people around you constantly project themselves onto you.You are merely an object that people project their ideals onto.Some young woman in Oakland, California will accuse you of self-pity if you talk about the perils of being rich and famous.
Expectations to lead a life are brought about by power and wealth.Every thinking person has a question about what to do with their life.If you are a good person, the weight and duty of being responsible with the billions you have becomes a burden.It almost becomes a crime to pass that burden onto your children.What do you do with it, but pay more attention to the billions?It's hard to not have it in your life.
Money can change your sense of morality.As you move up the class ladder, you are more likely to cheat, take candy from kids, and shoplift, according to Berkeley psychologist Dacher Keltner.Being rich doesn't allow you to see the vicissitudes that define the experiences of most of your fellow humans.If you don't remember the last time you waited in line at the airport or drove your own car to the supermarket, you're living in a different world than most of your fellow humans.It is not surprising that it is harder for the rich to empathise with people who are different from them.
Maybe wealth needs its own goldilocks story.The rest of the essay and my take on the ideal amount can be found here.Tim O'Reilly says that money is like gasoline.The point of life is not to go on a tour of gas stations.