Eddie from Finance Fox writes an intriguing post entitled, “Money Will Change You“. I salivate at the picture he uses because it is my dream to one day never have to fly commercial again! Having a matching Aston Martin waiting for me with Kate Upton in Monaco wouldn’t hurt either!
When Eddie was in serious debt, he writes, “My mood sucked. I was edgy, worrisome, desperate and a nut case. Our moods are strongly tied to our earnings. I know this first hand.” Who can blame him, given not being able to do what you want due to a lack of money, or worse yet, doing things you don’t want to do because you need the money is a horrible way to live.
Thankfully, Eddie now has three income streams: 1) A commercial cleaning business, 2) A full-time job, and 3) Blogging income. Rock on! No longer does he suffer from money anxiety. Instead, he describes money as a “high“, a type of “laughing gas” if you will that lets him breathe easier and not be in constant worry. In a large way, I agree with him. Sometimes I pinch myself when I realize that I no longer have to work at McDonald’s for $3.25 an hour, or work at all for that matter!
WHAT HAPPENS IF YOU MAKE MONEY TOO QUICKLY?
The speed of wealth accumulation is what makes people go bonkers. Nobody is really jealous of Warren Buffet because 1) He is a humble guy, 2) He’s in his 70’s, and 3) It’s taken Warren decades to make his wealth! Warren is an extreme example of course. You can use a 60 year old doctor who went to school until 35 and makes $700,000 a year as another example. Most people would say the doctor deserves everything if not more given all the dues he’s paid.
But, let’s say you’re a couple years out of college making $35,000 a year. You’re a good looking, affable young adult who gets poached by a competitor who offers you triple your salary to work for them. You’re now 25 years old and making $100,000 a year. Suddenly, your old colleagues and probably your friends will start becoming jealous of your success. Who makes $100,000 a year at 25 years old? Not many!
Finance Fox asks a very important question,
“If money engenders admiration, why does having an enormous amount of money also cause a tremendous amount of envy?”
Great question that I’d like to tackle.
THE REASON FOR MONEY ENVY
Money envy is not only due to our inherent jealous tendencies. Those who are suddenly rich play an ENORMOUS part in shooting themselves in the face. Making money too soon destroys you because you end up destroying yourself. Let me explain.
If you’re that recent college graduate who makes $35,000 and suddenly start making $100,000 at 25 years old, you are going to be hard pressed to contain your excitement. As a guy, you will undoubtedly buy some fancy car that’s way outside your budget because that’s what guys do, buy cars! You think the good times will last forever, so you end up purchasing or leasing a $50,000 BMW 335i coupe. You’ll probably get some new threads and a nice respectable watch as well.
As a gal, you will undoubtedly buy some multi-thousand dollar Louis Vuitton or Hermes handbag. As accessories, you’ll go to Tiffany’s and get yourself a matching bracelet. Of course, no fine lady is without a pair of Christian Louboutins or Manolo’s for $500 a pair! You’ll start posting on Facebook how fabu it was to go to the spa, as well as pictures of you and your girlfriends renting a limo up in wine country. One girl I know loves panties. When she got a nice $20,000 bonus she went out and spent $1,000 just on undergarments! Nice!
Remember, these are 20-something year old recent graduates who can’t help but spend their newfound money until they blow themselves up. I see this all the time, and I know you do too.
ANNOYING THINGS NEWLY WEALTHY PEOPLE DO WITH THEIR MONEY
Eddie uses The Real Housewives Of Vancouver as an example. Every time he sees them on TV or in a magazine he admits to thinking to himself, “Gold diggers“! Ouch, but perhaps very true!
Let’s say one of the Real Housewives was very unnattractive, served in Iraq for three years away from her family, has an autistic child, and is now in charge of a homeless shelter for veterans. Do you think Eddie and others would despise this Real Housewife of Vancouver? Of course not! This housewife would probably be the most favorite housewife of all!
Instead, the Real Housewives are all talking about their mansions, boob jobs, charity events, and fine clothing. It’s way more fun to hype up their riches for reality TV, and the ratings prove it! There is a massive love/hate relationship with the Real Housewives in America and in Canada, just like there’s a real hot cold relationship with Keeping Up With The Kardashians. People hate ‘em, but they just can’t stop watching them!
Annoying Things Newly Rich People Do:
* Constantly updating their Facebook status with pictures of themselves in exotic places.
* Highlighting pictures of themselves with other rich people or celebrities. Once in a while is fun, but not all the time.
* Repeatedly telling everybody how much money they make with immature adjectives to describe their excitement.
* Driving to work in a car worth more than their colleagues and managers.
* Talking about how wealthy their parents are, providing double insult to the observer who now thinks they are only wealthy due to connections.
* Wearing inappropriate clothing at work, accompanied by ostentatious jewelry.
* Keep on reminding your colleagues that your uncle is the CEO. Screw you!
MONEY CHANGES YOU NO DOUBT!
In the wrong hands, money changes people for the worse. Those who suddenly go from little wealth to lots of wealth end up doing things they regret later on. How many times have you seen athletes make millions only to end up broke? How many times do you see people win the lottery or inherit loads of money only to admit spending it all in a short period of time and having to go back to work when they never had to again?
When it comes to money, it’s better to make it slowly and with all your effort. Everybody’s maturity and definition of “slowly” is different. But I tell you more harm will come out of fast new wealth than slow steady wealth. You’ll learn to appreciate money more and it will therefore go a much longer way.
If the newly wealthy can learn to stay humble and be more adept at hiding their wealth, there wouldn’t be such such a conflict between classes and between emotions.
Check out Eddie’s post and share your thoughts. I’ll be commenting over there.