In a world with mounting pressure to reach financial excess, let's unravel the myths surrounding money and explore practical steps to foster a more balanced financial mindset. As a Gen Z financial advisor with a critical perspective of capitalism, I invite you to reconsider common misconceptions and embrace actionable advice for a healthier (and. more realistic) approach to finances.
Myth: More Money, More Happiness
Reality: Only you can decide what brings you happiness. Yes, more money might be able to solve the problems that you are facing right now, and that would probably make you happy. Studies have also proven that, for most people, happiness levels plateau after a certain income level. As cliche as it may sound, the more control we give wealth and money on our personal happiness, the more influence self-interested economic gain will have on our decision making. Also, we are even more likley to fall victim to anxiety, depression, and unhappiness when economic tides turn, or we encounter financial trouble - a time where we'd arguably need to maintain our mental health the most. Globally, we are suffering from severe income and access inequalities, which are issues that must be solved on a systemic level and are very different than the individual pursuit to a higher salary. The world isn't suffering from a lack of money, we are suffering from an inequal distribution of it.
Myth: More Money, More Problems (See where I'm going with this?)
Reality: As much as we can sit here all day and act like we are enlightened enough to reject modern pressure to glorify material wealth, more money most likely won't cause you more problems. More than 60% of Americans live paycheck to paycheck as of September 2023, according to a LendingClub report, and this includes more than 50% of individuals who earn 6 figures or more a year. So, if you are apart of the global majority, a bit more money would most likley solve more problems than it would create. That's just the reality.
Myth: The Market is Always Fair
Reality: We know that in a profit-driven society, despite common idealogy suggesting that free markets self-regulate and allow equal opportunity, our modern economies foster and maintain the unfair subjugation of many. Although it may feel inescapable, acknowledging the systemic issues within capitalism will allow us to advocate for greater economic justice. Engage in conversations that challenge the status quo and promote a fairer economic system.
Myth: Debt is Always Bad
Reality: You have to differentiate between good and bad debt (most commonly, "bad" debt is debt with interest rates higher than what you would expect to return in the market, like 7-11%, while "good" debt has a lower rate - thus your money is better spent invested and the debt is wise to take on). Most good debt is associated with borrowing for education or a home, while bad debt is usually expensive consumer debt (i.e. credit cards). Develop a strategic plan to manage and eliminate debt, focusing on financial wellness and sustainability.
Myth: Endless Growth is Sustainable
Reality: Endless growth is not sustainable for the planet nor for individual humans. We are not machines and most of us cannot sustain a grindset forever. Embrace sustainability in your financial decisions. Invest (your time and money) in taking rest. Support eco-friendly initiatives. Explore alternative economic models that prioritize both people and the planet. Contribute to a future where financial success aligns with spiritual, emotional, and ecological well-being.
By challenging money myths and adopting actionable advice, we can redefine our relationship with finances. Your focus determine your reality, so let's prioritize holistic well-being, ethical practices, and sustainable growth, paving the way for a more responsible and equitable financial future.
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