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Why Aren’t Rich People Happy With the Money They Have?

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Re: Why Aren’t Rich People Happy With the Money They Have?

#161

Post by 10122018 »

icebraining wrote: post #157
10122018 wrote: post #141

Earlier quoted context omitted.

Yes. What has become clear to me in this discussion is that some people, when talking about being "comfortable", are talking about maintaining a much more lavish lifestyle, funded by passive income, than many people like myself, are used to or feel that they need. For many, comfort is simply feeling like they aren't at risk of starving or becoming homeless. That's the definition I'm working with, but it's clear to me…

I think one of the disconnections here is that you are talking about extra cash (over what you currently earn), whereas rgbrenner (and probably others) are talking about all income. And I think they have a point: $100k is a lot of money, but what if you got sick and couldn't work anymore, ever? Wouldn't you be at the risk of starving or becoming homeless if you had to stretch that over 30 or 40 years?

> I think one of the disconnections here is that you are talking about extra cash (over what you currently earn), whereas rgbrenner (and probably others) are talking about all income.

Agreed.

> And I think they have a point: $100k is a lot of money, but what if you got sick and couldn't work anymore, ever?

That's a fair point. I don't really worry too much about getting sick and never being able to work again ever. I think some of this comes down to the level of risk that each individual is content to live with. If I had children or a family, perhaps I would be a lot more worried.

Re: Why Aren’t Rich People Happy With the Money They Have?

#162

Post by badpun »

IllusoryReverb wrote: post #58

I have had the sense that guilt plays a part in dissatisfaction with wealth, whether consciously or subconsciously. The way the economic system is set up, a person can only have money, wealth at the expense of others. I only have what I have because someone else has been deprived of it. Its difficult to enjoy something when at the back of ones mind, it is earned off the suffering (real or imagined) of others. I came…

> I only have what I have because someone else has been deprived of it.

This is clearly incorrect. If you made something and now own it, the thing did not exist until you made it - hence no one could have been deprived of it.

Re: Why Aren’t Rich People Happy With the Money They Have?

#163

Post by hudibras »

brazzy wrote: post #108

> Where did Norton find his rich people? For that particular study, an investment bank connected him with some of its high-net-worth clients. But Norton also told me that he had previously consulted with a pool of Dutch millionaires willing to respond to researchers’ questions Sounds like that would impose a pretty hefty sampling bias. I'm fairly sure there is a large pool of people who are very quite and quite happy…

>Dutch millionaires willing to respond to researchers’ questions

The researchers didn't tell them what the questions were about ahead of time.

Re: Why Aren’t Rich People Happy With the Money They Have?

#164

Post by fabricexpert »

10122018 wrote: post #133
JamesBarney wrote: post #92

Earlier quoted context omitted.

> If somebody were to give me a hundred thousand dollars to invest, I am quite certain I could live comfortably for the rest of my life This shows a pretty big disconnect. And is something no one in their 30s+ would say. The common rule of thumb is you can live off of an investment at 4% indefinitely(assuming 6% return and 2% inflation). This gives you $4,000 a year. Crappy insurance: $4,200 a year. Crappy 300 sq ft…

> This shows a pretty big disconnect. Yes it does. That was my point. For starters, you're assuming I'd want to live off the investment, instead of continuing to work. Regardless, I shouldn't have mentioned the arbitrary figure of $100K, which has made it so much easier for people to ignore my point, that many people are comfortable with much less than $10M.

You're presuming you can continue to work.

$10M means you don't have to work, even when you can't.

Re: Why Aren’t Rich People Happy With the Money They Have?

#165

Post by keithwhor »

10122018 wrote: post #152
keithwhor wrote: post #134

Earlier quoted context omitted.

$10M is a pretty standard “set for life” goal based on a 3% annualized rate of return. It’s obscenely difficult to get there, but an entirely reasonable and well-defined goal for people who are willing to compete (and, with high likelihood, fail) in the market to get there. It’s up to you to decide if you’d like to pursue that path. There are plenty of paths to stability without setting that goal; you’ll just find yo…

> you’ll just find yourself arguing with a self-selected subset of people targeting it when you post on a place like HN Very true, and thanks for my first chuckle of the day. I certainly don't wish ill on anyone. I've suffered a lot, in various ways, but that has made me more compassionate, and I think therefore there has been value in that suffering. I have learned how to make do with very little. Again, I appreciat…

No worries. Thanks for the appreciation.

Ten years ago I was a broke college student doing lab grunt work. I couldn’t really afford coffee in the morning. I know what it’s like. He might not like me sharing this, but I watched my father who didn’t have a whole lot to begin with lose everything to his name just as I was preparing to enter the working world. That wasn’t even the worst of it for me personally, shit just happens.

I am very fortunate now to be able to work alongside some absolutely mind-blowingly talented people. Hit me up in ten years and see if I’m in a a cohort of people who have reached their dream amounts, but I’m not sure how much absolute numbers matter anymore. I’m happy. There’s a really big world out there. Don’t discount yourself and don’t sweat being broke in college. It’s part of the experience, humbles you, and grows something special that will allow you to relate to others more freely in the future.

I bring this up because: keep it up, keep asking questions, and when people tell you “$100k isn’t much,” work on figuring out what they know that you don’t yet. If you know it’s possible there’s a chance you’ll get there sooner than they did. Stay humble, but be hungry. Good luck in the future.

Re: Why Aren’t Rich People Happy With the Money They Have?

#167

Post by murukesh_s »

10122018 wrote: post #46
antognini wrote: post #32

There was a well written comment on Reddit a few years back about how your life changes at different levels of wealth: https://www.reddit.com/r/AskReddit/comments/2s9u0s/what_do_i... The main gist was that in the $10-30 million range you can live a comfortable life without having to worry about finances again. In the $30-100 million range you can start doing "rich people" things like have a private jet (though this m…

> in the $10-30 million range you can live a comfortable life without having to worry about finances again This statement strikes me as very disconnected from the reality that the vast majority of people on this planet live in, and honestly, a little bit irritating. I'm well aware that many here on HN would be millionaires, but as somebody who grew up in poverty and is now a full-time uni student with no savings in t…

I feel you are having this thought process because you are still a student where you can afford to live frugally. Once you get a job, your social status get raised and you would need 100k a year to live comfortably. So even $1MN is not going to take you far if you stop working, i would even suggest $10MN is also a risky bet, unless you invest it wisely as inflation can easily wipe out a large chunk of that value in few years.

Re: Why Aren’t Rich People Happy With the Money They Have?

#168

Post by hycaria »

ForHackernews wrote: post #137
JamesBarney wrote: post #92

Earlier quoted context omitted.

> If somebody were to give me a hundred thousand dollars to invest, I am quite certain I could live comfortably for the rest of my life This shows a pretty big disconnect. And is something no one in their 30s+ would say. The common rule of thumb is you can live off of an investment at 4% indefinitely(assuming 6% return and 2% inflation). This gives you $4,000 a year. Crappy insurance: $4,200 a year. Crappy 300 sq ft…

This depends where in the world you're thinking of living. $4,000/year goes a lot further in the developing world.

Unsurprisingly, very few seem to want to go there (otherwise financial independance would be easily achievable for lots of people).

Re: Why Aren’t Rich People Happy With the Money They Have?

#169

Post by hycaria »

lordnacho wrote: post #112
10122018 wrote: post #46

Earlier quoted context omitted.

> in the $10-30 million range you can live a comfortable life without having to worry about finances again This statement strikes me as very disconnected from the reality that the vast majority of people on this planet live in, and honestly, a little bit irritating. I'm well aware that many here on HN would be millionaires, but as somebody who grew up in poverty and is now a full-time uni student with no savings in t…

This is a fairly interesting comment for me. I was exactly in your situation. I had no money in Uni. My parents were boat people with no money either. Not long after Uni, I had 100K in my account. Comfy, no mansion, no car. The first thing I spent more than a couple of grand on ever was dental work. Felt great to fix the crossbite. But here's the thing. You could just be alone your whole life, no wife, no kids. I've…

>You'll need a bigger place to live. You'll want to send the kids to private school. You'll need a bigger car.

Maybe it would be more correct to say You'll want a bigger place and a bigger car too, because there's no real need there.

Re: Why Aren’t Rich People Happy With the Money They Have?

#170

Post by drjesusphd »

IllusoryReverb wrote: post #58

I have had the sense that guilt plays a part in dissatisfaction with wealth, whether consciously or subconsciously. The way the economic system is set up, a person can only have money, wealth at the expense of others. I only have what I have because someone else has been deprived of it. Its difficult to enjoy something when at the back of ones mind, it is earned off the suffering (real or imagined) of others. I came…

You might really enjoy this essay. It changed my life.

http://webcache.googleusercontent.com/search?q=cache:Ph7Enkr...

I came to terms with ideas like this by changing careers to a profession which, at least abstractly, benefits humanity. I've taken upon myself a modern/global idea of "noblesse oblige". The fortunate have an obligation to use their vast resources in a way that benefits others. We are fortunate to live in the West during this time, but that also means we have access to tremendous knowledge and ability that we are uniquely equipped to make good use of.

Of course, I may just be fooling myself and the resources I consume would still be better spent directly helping others.

I try to be clear that I'm far from a saint in this respect, but it's difficult to discuss these things with others without inducing guilt and defensiveness. I think these kind of things needs to be discussed though, so I'm glad you brought it up.

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