Money and its connection to a better life

 Money and its connection to a better life

Content 

S.N

1. Introduction

2. Objectives/Purpose of the study.

3. Our relationship with money

4. Findings/Observations of the study.

5. The right balance

6.     Conclusion

Introduction

Money, the only thing without which you can’t survive in today's world.All the essential needs for a human to survive is bought and traded for with money. So obviously everyone is working, stressing, dictating their thoughts and time over earning more money and improving their living standard; in a way the world revolves around money. In addition to the materialistic needs the thing most humans desire; social prestige is also determined by where you belong on the paycheck hierarchy. You might be a terrible person, your values and ethics might be distorted but if you have money most people abide by you and will want to sever ties with you for their own benefits.

Saying that money doesn't make you happy is ludicrous. It costs money to buy food and have a place to live. Ask someone who has received a bonus at work and is now able to take a vacation if the extra money has made them happy.

But there must be a limit, right?

Giving someone who is hungry enough money to buy lunch will have a profound effect on their wellbeing. But if you give Bill Gates an extra million pounds, he probably won't be much happier as a result. There must be a tipping point, the point at which an extra fiver won't make anyone happier, somewhere between these two extremes.

But the real question here is does money solve all the problems of a person? Does a person’s emotional, physical and mental wellbeing increase linearly with increased income? The answers to all these questions are not as simple as we think they are.

Purpose of the paper

1.Investigating the relationship between money and a better life is the focus of the paper.

2.The goal of the writing is to make readers aware of how complicated and subtle the connection between wealth and pleasure actually is.

3.The paper places a strong emphasis on the requirement for knowledge of competent and impartial financial management and handling

4.The essay focuses on the significance of being aware of responsible and ethical financial management practices.

5.Learning more about how money functions in our life and how it affects our general wellbeing is the main goal.

6.The goal is to help readers to focus on balanced use of money.

Our relationship with money

Every time we talk about personal finance issues, I hear folks lament their predicament by saying, "If only we had more money." Many genuinely think that not having enough is what's causing their issues. Surely, that is a blatant oversimplification. 

Ask around to see how much is sufficient. There is extensive study that examines this issue in depth and defines a minimal standard for every nation. Money is surely a source of anxiety and concern if there isn't enough to meet basic demands. But it's typical to see wealthy individuals who have a lot of money who are nevertheless agitated, worried, and apprehensive about not having enough. They really really think they're going to run out of money.

A friend of my dad came to our house to discuss his retirement preparations because he will be retiring in one month. He is a senior manager at a sizable bank and will receive a respectable pension for his entire life. He has two houses in the city where he resides. His children are now adults who live and work elsewhere. Do I have enough money to get me through, was his only question throughout the entire chat. Our connection to money is a complicated one.

There is no mathematical formula for determining how much money will make us content and secure. It's also untrue that having more money makes us feel more safe. Our early life experiences have a significant role in this equation. My parents were so preoccupied with keeping track of money while I was growing up that arguments over expenses incurred or not accounted for would wrap up the day. They always balanced the books before retiring for the night. I vowed never to write accounts again!

On a more serious note, these implicit lessons we learned as children might help us feel successful and content with money. If we were made fun of for not having nice clothes or jewellery, we could decide to start wearing them; if we were subjected to too many moves and evictions, we might decide to buy a house; and so forth. Psychologists note that we may emulate behaviours that had an impression on us as youngsters, or we may outright rebel against them. Yet how much is enough in our minds depends on how we feel about money.

Peer group comparison

Peer group comparison is one of the most frequently mentioned aspects of feeling wealthy or impoverished. Interestingly, research has found that those who live close to lottery winners tend to accumulate debt more frequently. They simply wanted to enjoy life like their privileged neighbour.

According to research, living within one's means may be a wise personal finance decision. They think that if the people we live with earn and live like us, we may feel prosperous and secure. The notion of peers and cohorts has evolved in this social media age. One can see and feel envious of a much larger group that is largely showing its way of life, residence, cuisine, attire, and travel. With these comparisons, one's sense of inadequacy regarding their wealth and income grows. Social organisations help with this problem in certain ways by bringing the homogeneous people together so they can celebrate or lament over shared experiences. The disruption it causes in society is one of the dangers of income disparity.

How much money is enough?

How much money do you therefore need to survive?

D. Kahneman and A. Deaton conducted a study in 2010 to determine whether income has an impact on how well-being emotionally and personally is assessed.

They divided emotional health into quantifiable areas like joy, stress, sadness, rage, and affection as measures of how enjoyable your life is or is not.Personal life evaluation was used to describe how someone views their own life.The study found that stress, feeling down, melancholy, and worry—all components of emotional wellbeing—decreased as household earnings rose.The study found a sweet spot of $75,000 gross annual income where emotional health and personal life appraisal soared.

They discovered that well being stopped increasing after $75,000 and started to level off, showing that larger salaries did not enhance the sample group's enjoyment or quality of life.

So, how much cash is sufficient? Can we rely on research?

Although the aforementioned study provides us with a general idea of how much we need to live at our highest possible level of comfort and enjoyment, it is crucial to remember that each country is unique.Country-to-country differences in taxes and cost of living are significant. Thus, earning $75,000 a year will buy you a much more modest lifestyle if you reside in the USA than it would in Nepal.

The study also discovered that after a certain point, subsequent income rises tended to be linked to poorer levels of wellbeing and life satisfaction. This may be due to the fact that, up to a point, money is necessary to meet basic necessities, buy conveniences, and possibly even make loan repayments. People might be motivated by wants such as pursuing more material success and participating in social comparisons after the optimal point of demands has been satisfied, which, ironically, could reduce well-being.

You can use a cost of living calculator to see how much money you would need to earn in a different country to maintain the same standard of life as you do today.

The right balance

Instead of viewing money as a direct pass to a perfect and problem free life we should see it as a tool, a tool which gives us freedom from all the day-to-day chores like paying bills, working a 9 to 5 job just for the sake of money, children’s education, family’s health care and all other stuffs. This freedom then allows us to find and get what we truly want from life which will differ from person-to-person.

So, how does one approach the issue of sufficient money and income? Here are some things to consider.

First, it's more essential how we use our wealth and income than how much of it we have. Consider how you are spending your money and whether it is important for your happiness and well-being. Instead of attempting to have it all, try to allocate money to the things that are important to you. For instance, families who place a high priority on their children's education are willing to make sacrifices when they are aware that their financial resources are being put to good use.

Then, determine the security indicators that apply to you. Even if others do not find these purposes to be very vital or sane, allocate funding to them. I've met a lot of people who are content and secure with their bank accounts. I'd suggest investing those unused amounts. But I came to understand that they felt secure because of some excess that is left there and is always evident whether they use the ATM or their phones. Invested money is hidden away and does not give the same feeling. 

Give the big purchases some thought and ask yourself if they make you feel happy and satisfied. Many of us don't stop to think about how spending money can actually drain us and be ineffective. Spending is a difficult choice, and we become tired of feeling guilty after we spend. Every expenditure decision, including going to the movies or taking the family on a tour, may be defended as not being wasteful. Some people just won't buy anything; others live in denial. There is a medium ground where you consider your spending priorities. Do that self-reflection.

Fourth, it's a healthy habit to set aside money for investments and savings. Yet, increasing money might not always result in a feeling of contentment and sufficiency. Many claim that instead of feeling secure about what has been saved, they worry excessively about losing it. There is also ample evidence of suspicion and frugal behaviour among the exceedingly wealthy. As so many situations involving inheritance have shown, wealth that is not used is a waste, and wealth that is gained without effort can cause tension, quarrels, animosity, and bloodshed. Think about the advantages of accumulating and using your wealth during your lifetime. Don't leave excessive bequests or fund the proverbial seven generations.

Lastly, donating is a consistent source of delight and happiness, according to research on money and happiness. Take charitable giving seriously. Especially if they are among your loved ones who are truly in need and who you respect. Only when you have dealt with the other problems we identified regarding your connection with money may you be prepared to go on to this step. But set a target for getting there. Moving from worries about not having enough money to confidence that you have enough to give out is a deliberate process. You don't need what you have to know if you have enough. Your actions with the money will determine how secure and content you feel.

Invest in people. Try the following test on yourself: Pick up a Rs 1000 and help someone else today. You may give a friend a token of your appreciation, assist a total stranger in need at the store, or contribute to a cause close to your heart. Despite the temptation to use this money for yourself, a decade of research indicates that you're more likely to be happy if you use it to benefit someone else. In fact, those who are having a hard time taking care of their own basic needs show signs of this "warm glow" from helping others.

Giving, however, does not entail that recipients will always be content. It matters how and why you contribute, not what you give. It's crucial that you feel as though your decision to donate was done voluntarily, that is, that you choose to do it rather than feeling compelled to by a pushy coworker requesting yet another donation to their favourite charity. Seek out charitable opportunities that will let you observe the impact your generosity is having on a person or cause you sincerely care about. You can also begin modestly. According to research, even a small donation might improve your mood.

If only I had more is generally a wrong place to start.

 

Conclusion

Despite the fact that there are other factors that also play a part in leading a better life, it is indisputable that having money helps people meet their fundamental necessities, have possibilities for personal development, and feel secure and stable. People may aim toward a more meaningful and rewarding existence while limiting the negative repercussions connected with the desire of riches by handling money wisely and having a balanced outlook on life.

So it's important to keep a balanced view of money and what it can and can't do in life. People can work towards a more fulfilling and satisfying life while minimising the negative effects connected to the pursuit of wealth by managing money responsibly, setting financial goals, and giving other aspects of life such as social relationships, personal growth, and spiritual fulfilment priority.

The fact that money is a tool, not an end in itself, must also be understood. In the end, a balanced attitude to money may help you achieve a more purposeful and happy life along with other areas of it.