Hello all. My name is Zed Berlin and I just joined up to MoneyConfessions. I uploaded a heap of videos on Status Anxiety for you folks.
View Videos.
Although this is a forum about money, I thought I should bring up the popular topic of how much money is enough? Does having loads of money make us happier?
These videos are based on a popular concept called Status Anxiety. The basic idea behind Status Anxiety is that money won't make us any happier as long as our friends, family and those around us are as wealthy or, worse, wealthier than ourselves. If our immediately circle of friends own bigger houses, more luxurious cars and nicer clothes - then on the whole we will be rather miserable (regardless of how much money we actually have).
The reason for this is that we judge our position in life - our achievements, and our bank balance - on how much they differ from those around us. We don't view money in absolute terms. We don't think 'well I earn $65,000 a year and that means that I can afford to eat out once a week and send my kids to private school. How great is that.' We think, well I earn $65,000, but the guy sitting next to me at work earns $80,000 and my best friend from high school just sold his company for a squillion.
The problem with our society today is that we think that we are equal. And in thinking that we are equal, we get upset and jealous when our friends and colleagues are (or appear) to be wealthier. It makes us feel and look bad in comparison. We get down on ourselves.
The video contrasts this scenario to society hundreds of years back; at a time where class divisions did exist and people born in the working class belonged and accepted their fate in the working class, and the same for those in the upper class. This was actually a good thing. It meant that Joe Blow didn't get down on the guy down the road who just bought up massive tracks of land, because this guy (the landowner) wasn't a point of comparison.
But today, we all think that we have equal opportunity to become successful and wealthy. And we get down on ourselves when we don't live up to our highest expectations.
But the really scary part about this scenario is that there's always someone out there (a friend, a neighbour, a golf partner) with more money than us. So can we ever feel fulfilled and happy?
Zed.