More money, more problems
Tell me can the hateful chain be broken?
Production and consumption define our hollow lives.
Avarice has led us ‘cross the ocean,
Toward a land that’s better, much more bountiful and wide.
–How much is enough by Bad Religion
“More money, more problems” is probably a phrase you’ve heard before. It’s used a lot in popular culture but it’s one of those sayings few people seem to believe. Most people assume that if they had enough money then they wouldn’t have to worry about anything. Well in some ways it certainly helps to have more money, but it definitely isn’t the solution to all a person’s problems.
There is some truth in more money more problems. The issue is that as a person starts to acquire more money they also start spending more money. When that big promotion or new job comes through it usually is accompanied by new expenditures as a celebration. A new car, a bigger house, a new wardrobe. And since one is making more money, they feel free to spend more as well. Their needs rise to meet their means. Instead of being happy with the $10 meal out once a week now its $30 and its a few times. It’s not that there are more problems with more money, it’s just the same problems that haven’t gone away.
A little math to illustrate the problem:
A person makes $40,000 per year and they have a home with a mortgage payment of $1,000 per month.
Now when they get that big new job and are making $60,000 and have bought a new house which they are paying $1,500 for. Their new style of life suits their new means.
The percentage of money going to rent is staying the same. And the extra dollars are likely going to nicer food, clothing, and entertainment. A person’s lifestyle seeks its own level of balance when not focused on. I’m guilty of that myself - when I got a large raise I ended up spending a third of it on my wine cellar (one of my hobbies). So in reality I didn’t get any more money… I just got one more expense to keep up with.
It’s not great to be increasing expenses like this, but along with the increase in money it’s not terrible. The issue comes when for some reason the money is cut off. It could be anything - layoffs, medical expenses, economy shifts (hello housing market), or retirement. But once a person becomes used to a standard of living it’s very difficult to move backwards. I would have trouble going back to my top ramen days myself. Now all that money a person had been making really is leading to more problems as the expenses stay the same. Trying to keep up a lifestyle without the means is what leads so many people into the whole of debt.
The trick to avoiding “more money, more problems” is to know that we all seek a balance between our desires and our means. The solution isn’t to increase our means… that will never end up satisfying us. We can always want something more and would always want more means to bring those wants into our grasp. The trick is to lower our level of wants to that which is easily attainable or free. Enjoying things like reading, being outdoors, and the company of friends are all things that we can have at any income level. Also those things can’t be taken away. That’s a solid balance of wants vs means instead of a precarious one.
If we can make more money then that’s great. But to avoid having more problems as well we have to be focused on our own internal personality. Don’t let things that were once just a “want” become a “need”.
