Of course, I’d do all the obvious things, such as getting a bigger house, a newer car, and quitting work, but beyond that, I have no interest in an extravagant lifestyle—or at least that’s what I tell myself.
By a bigger house, I mean one typical of upper-middle-class living. I’ve watched plenty of videos of people touring million-dollar mansions, and they all look too big, open, and sterile to me. I’ve seen cozier tiny homes than those. And by a newer car, I mean a 2017 model or so instead of the 2007 one I drive now.
Really, give me a nice cottage by the lake with some land and a big garage for all my tools and toys, and I’m all set. I much prefer the idea of “hidden wealth” over showing it off. I’m just kind of worried that I wouldn’t be able to live up to my own expectations if push comes to shove, and there’s really no way of testing that. Am I just kidding myself here?
I feel the same way about fame. Many people aspire to become successful YouTubers or such, but the idea of people recognizing me on the street sounds awful.
Being rich turns you greedy. Not you in particular, rather: any of us. Almost everyone. You become more worried about hanging on to what you have and less concerned with the welfare of others. The good news is that you can be reminded to be compassionate and it will help. If you are asked to imagine yourself in another’s place, you can become more aware of how others feel. If, however, you are left to your own devices, you are likely to change for the worse without even noticing. I am thankful Melinda Gates married Bill and got him to engage in charities. I think a lesser woman may have allowed him to be a horrible person.
There’s lots of studies out there, but here’s a quick link with the summary of a few of them: https://blog.ted.com/6-studies-of-money-and-the-mind/
The way I think about it is that being “rich” means having a lot of money in the bank, whereas being “wealthy” means having enough investments to live off passive income indefinitely. Rich people can still live effectively from paycheck to paycheck, while a wealthy person’s wealth is tied up in assets. This means they can’t necessarily splurge a ton of cash on a yacht or similar luxuries, but they can live comfortably off the interest without having to work. Billionaires, on the other hand, are a whole different animal because they can afford to do both and much more.
Wealthy people can use their wealth to secure low interest loans when they want to splurge. They just don’t tend to do it as much as rich people because the mindset that leads to long term wealth involves splurging less offen and only when it is affordable without negatiely impacting their wealth.