Earn more or save more? The reality of wealth and savings
Ask any child what they want to be when they grow up, and you’ll find there are several children who claim what they want to be is rich. Wealth is a common aspiration, though it is not without its own pitfalls. This article is going to overview some of the reasons you might be a more grateful than you think that you’re making less.
Bye bye discounts
There are a lot of discounts available, from healthcare cards to cheap movie nights and more, that are available to people from a low income bracket. This may not be a huge deal if you’re ‘Richie-Rich Rich’ but it will effect you if you’re merely a cut above being in desperate need of those discounts.
Nobody tries to borrow off of some one they know is broke, or some one they know is “making it”. If you’re viewed as the rich one amongst your friends, they’ll all be more than aware, and expect to see some of that wealth – whether in the form of picking up the tab for drinks or being asked for private loans. This is one reason not having as much can be handy, it really simplifies the whole process.
Australia works off of a bracketed income tax system, meaning that the more you earn, the more you will be taxed. This can really kick in in the higher brackets, and if you have over $180,000 you could be paying a high percentage of your wealth to a government that can do whatever it wants with it – no checking with you necessary! Being in the lower brackets yields significantly lower tax rates meaning taxes is one reason you should be happy if you’re earning a bit less.
Money doesn’t make you happy
Many people fondly imagine that “if only they were wealthy” they’d be happier people. The reality is that although money does make some things easier, it makes a lot of things more difficult – you’d likely be as happy (maybe even less happy) than before. Issues with happiness are more likely to be related to job satisfaction, relationship success, and health, things that all bear looking into – but that have little to do with wealth itself.
This is just a brief look at the negative aspects of how “the other half lives”. I’m not saying it’s terrible to be wealthy, but it’s not the best either. There are pitfalls to both having and not having wealth, it’s important to be aware of both.