The Earth Becomes Damp
February 19–23, Amherst, MA USA
Seasonal Memoir #58
In praise of “enough”
What is the point of amassing a small fortune? I’m not talking about the uber-wealthy, who for the most part hide their fortune, and are largely invisible to society. These are the old-money types in old jeans, loafers, and a beat up Volvo. Nor do I mean the nouveau riche, who go out of their way to show you what they’ve accumulated. Both of these castes can have their worlds, which frankly, sounds awful. I’m referring to the solidly middle class who strive to be rich, or at least give the appearance of being monied.
I think we can all agree with The Beatles statement on money and love, but we are nevertheless still fixated on the idea that money can buy us happiness. There have been numerous studies that show that after a certain level of income, happiness doesn’t correlate with additional income or wealth. In fact, there are researchers who study the unique dysfunctions that come with affluence. And if you follow Eastern philosophies, well, they figured this out nearly three thousand years ago.
Think about two hypothetical married couples in their retirement: the first spends like they were still in university, with no money in the bank, despite a healthy pension. They save, save, and save, fretting over nearly every purchase, worrying about an impending global financial collapse. The second couple, still needing to balance the checkbook each month due to meager pensions, happily give away their monthly buffer (and sometimes part of their modest nest-egg) to family near and far away. Success is about sustaining a happy retirement. Each month is a reset.
Wealth has been described by The Psychology of Money author Morgan Housel as a liberator, giving people the freedom to do what they want, when they want, and with whom. But is it really? It depends, I think, on mindset. The first couple lives in a bit of a prison, worrying about protecting actual wealth and perceived safety and security. The second couple, also with a support network in place, draws satisfaction from helping others in need, or simply gifting to family who are getting started in their lives. Having money is necessary to keep the lights on and food on the table, but that’s it. So one is left with the question, “Who has a hold on whom?” Them on the money, or the money on them?
There are a few classic traps that come with a fixation on building wealth:
- Attachment. Attribution theory explains how if we are successful investors, we usually credit ourselves (and our intellect) for the success, when luck is more likely the reason. On the flip side of the coin, when we make poor choices with our money, we take it to heart, and can sink into depression (or worse). Self-worth is attached to financial success.
- Striving. We are notorious for looking for happiness in all the wrong places: possessions, prestige, celebrity. Think of the wasted time, not to mention what is lost (such as time with family and friends), by pursuing wealth.
- Anxiety as a default. We would eye-roll toward anybody who viewed climate change watch as a day-to-day exercise: freaking out when temperatures are higher than average on a given day, or being overly relaxed when going through a cold stretch. The same emotions, however, happen when people ride the fluctuations of the markets, overreacting to the ups and downs, and losing sight of the decade-long overall upward trend.
- Judgment, leading to exclusion. Are people with less, or even those in poverty, somehow less worthy as humans? Is it because they just don’t have the smarts that others have, or because they are lazy? Hardly. Poverty is a cycle, and discrimination is real. And don’t forget that up to 45% of wealth is inherited, rather than self-made, according to The Brookings Institute. Categorizing people according to wealth erodes community.
- Hereditary burden. Do your children really want a big inheritance? I suspect this generation looks at money differently than my generation does. Why burden them with the implications (see above) of a small fortune, one that they neither earned nor had the chance to accumulate themselves and learn how to handle money and wealth through trial and error?
I’m only speaking for myself, but my hope is that I can reach a place in our retirement portfolio where I can say, “that’s enough”. How sad it must be to keep working well beyond your interest in your vocation, or having lost your mojo, just to sustain a lifestyle that is hardly needed, and won’t give you happiness or satisfaction?
We all need to define enough on our own terms. Here’s my shot at it:
- We have plenty of quality and active years left in our lives
- We have adequate food, shelter, clothing, and a safe place to live: the basics
- We are able to live in a way that contributes to environmental sustainability
- We have the ability to splurge on a meal or experience
- We can take on work that invigorates us
- We can travel occasionally
- We can focus on localized philanthropy
- We can buy whatever books I want
- We can treat family and friends to random acts of generosity
- We can leave our children and grandchildren a little something to help with college and getting started in life
Full stop.
