So you’ve just got a raise from work, what happens next? Are you happier? Does the quality of your life get better? Why is it that so many people who earn higher incomes still struggles with life and happiness?
For one, money doesn’t appear from thin air; it has to come from somewhere. Just like the stock market, someone has to loose in order for you to gain. When you do receive a pay raise, either management sucks it up and take the loss from their profits, or they extend that loss to their customers. Usually the company will increase their prices to cover for the pay raises, and suddenly, like a buttefly effect, everywhere else that’s linked to the company will have to also increase their prices to reflect initial price increase. In the end the raise you received doesn’t cover the increase in overall prices, which then cycles back to you wanting more money.
Let me give a quick example. A group of hardworking healthcare workers asks for a well deserved payraise, especially because another group of healthcare workers already got one from the previous year. But where does the money come from for their raise? Well, it will have to come from either city, provincial or federal grants and budgets. Where does the Province and the Federal government get their funding from? They get it from tax payers by collecting taxes. Of course this is a very simple analogy, but in the end we all end up paying for our own raises whether it be increase in property taxes, incomes taxes, or the general overal increase in consumer price indexes. By increasing salaries doesn’t actually increase the buying power or the overall wealth for the people, it will only hurt the middle and lowers class once it loops around.
Futhermore, does having more money actually make you happier and content with life? If there was a void in your life and you thought making more money will help fill it, then you are most certainly wrong. There is even a new diagnose called “sudden wealth syndrom”, where people who get rich overnight get depressed, sad, or even lost hope of life. You probably wonder why, and think they should be overjoyed, not depressed! It’s because they are overwelmed and don’t know what to do with the rest of their life anymore, as they have enough money to not have to work anymore. They lost the meaning of their lives. Money creates more opportunties but it doesn’t solve all your personal problems, sometimes it actually creates more problems if you are ot mentally or emotionally ready for it. It’s really about being financially intellegent and knowing how to manage the money you do have. Moreover, it’s about knowing what’s important to you and what you really need in life, and focusing on fulfilling yourself mentally and emotionally by doing the things you love and spending time with the people that are most important to you.
Having more money isn’t the answer to being happy nor can it solve all your problems. In a perfect world, we wouldn’t have any inflations or increase in CPI’s, for these are all man made phenomons. But of course we are not pefect, but we can start focusing inwards and change ourselves, and maybe our actions will influence others around us, and create the effect of Indra’s Net.