More Money More Problems: How True is This?

finance money mindset Dec 16, 2020

“Mo Money Mo Problems” Notorious B.I.G’s chart-topping single back in 1997 wasn’t just a song, but a message.

A message about the futility of making more money since it just brings more problems.

But this assertion has always been questioned by people who wonder “does more money equate more problems?”

Almost everyone asks this question about money, but the truth is that this is a question often asked by the average man who associates negative feelings to money.

The truth is that, depending on which side of the divide you are on, when it comes to more money, it could be more problems or less problems!

With more money comes the ability to fix more problems but conversely, we tend to raise our standard of living when salary goes up or income increases - a tendency known as “lifestyle creep.”

This lifestyle creates more problems of overspending, debt, and ultimately poverty.

The ability to solve more problems with money can be exhilarating but it can just as well create more problems.

Therefore, it is extremely important that we understand the concept of what more money more problems really mean.

 

Is Life Better with Less or More Money?

Money, without a doubt, makes life easier. Money will get you a house, a car, and a life of luxurious comfort, however, it may not make your life better.

Shocking right? Here’s why.

While food, shelter, entertainment and other essential purchases are non-negotiable needs that make life easier, would a diamond-encrusted car worth millions make your life any more meaningful?

This is not to say you will not have a great life with more money but it’s what your money is deployed to that makes life better and worth living.

While less money could make people more content, this will not make life any better, as affording the basic things that make life worth living become difficult and nearly impossible.

Money makes life better when invested wisely to yield more and when used not just to fulfil your personal desires and dreams but those of others within the time you have on earth.

More money is often more problems when used for satisfying selfish reasons, which only bring ephemeral happiness.

 

Surely, More Money Means Financial Freedom?

The truth about money is that it solves life’s biggest problems - the lack of it!

In a way, money brings happiness because not only does it buy you the things you want, but it frees up your mind and takes away most of the stressful concerns we have in this world.

Therefore, it makes sense to say with money, comes less worry about money.

We all need to survive and support our hobbies and other activities by using money.

And since this a fleeting material, we are always budgeting, trying to calculate what we can and cannot afford.

This mental process can be draining and stressful which takes a toll on our overall happiness.

More money guarantees financial freedom, ensuring you never have to worry about the basic things that people with less money would typically worry about.

This financial freedom comes from not only being able to buy anything but frees up your mental capacity to be devoted into other meaningful things like spending time with your family, friends, donating to charity and having a vibrant social life.

 

Lifestyle Creep- Why Do We Increase Our Standard Of Living As We Earn More Money

We mentioned the problem of lifestyle creep earlier, which is a phenomenon that occurs when an individual’s standard of living improves with rise in discretionary income.

This behaviour comes from a change in thinking that sees us spending on nonessential items as if they were essential rather than a choice.

We convince ourselves that we deserve it rather than thinking of the many ways saving the money would be more beneficial.

Budgeting and being committed to that budget allows us to not only discern wants from needs but make sensible buying decisions that ensure we avoid a lifestyle that has the potential to derail our financial freedom and throw us into the burden of debt.

 

It’s a wrap

In the end, whether having more or less money would lead to a life of more or less problems mostly boils down to other factors that go beyond the money.

These factors include your attitude towards money, your money mindset, your financial status, and what boundaries you have created around your finances.

It is essential to get more knowledge with regards to getting money to achieve financial success and living a life that is rewarding and complete.

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