What's it like having and earning loads of money??

74jax

fred246 said:

Some people seem to have a link between their earnings and their spending. So if they earn more they spend more. I have never had that. I just buy what I need and save the rest. Even when I inherited a lump sum I didn't spend a penny extra. If you have savings then you always have money to buy what you need.

I completely agree. I'm so lucky my husband and I are of the same mindset. We still live in the house I bought as a single mam, we could afford a much bigger house, more flash cars etc, but we really aren't into that. We have a nice home for us. We love travelling so will spend extra on upgrades etc, but we also go camping (however do have a nice awning etc with it).
There's nothing wrong with either a flash lifestyle or the one we have as long as the person is happy. 

AskAsk

fred246 said:

Some people seem to have a link between their earnings and their spending. So if they earn more they spend more. I have never had that. I just buy what I need and save the rest. Even when I inherited a lump sum I didn't spend a penny extra. If you have savings then you always have money to buy what you need.

some people spend money they don't have by raising debt.  they buy expensive things on credit cards and loans, thinking that their earnings will increase with time and they can pay it off then.  live now pay later mentality, or buy now pay later.

John_

Mr_Maths said:

@Sandtree for me it's been the opposite, some of them have been very talented but most have been a complete waste of space. 

As for working hard and being the best I can, that was my plan when I started out and I thought if I did that the money would follow. Somewhere along the way I realised that I hated my job and only cared about the money. After being rated significantly above target at my appraisals and getting a minimal pay rise even though my managers themselves would tell me I'm underpaid and then ending up being made redundant, its made me think what's the point.

When that happens it’s time to move on.

Working intelligently, and hard, tips the balance in your favour, but it can take a long tone to bear fruit, and you also need to make sure that you are moving at the appropriate time.

It helps of course to pick a career where pay is related strongly to performance, which I why I left the civil service and moved into banking.

[Deleted User]

Iamdebtfree said:

Marcon said:

Iamdebtfree said:

John_ said:

Iamdebtfree said:

I don't earn a huge amount. I don't want or need to earn more. I haven't got work on my mind 24/7 and I'm not uber stressed by relentless demands from management and subordinates alike. Not ambitious in the slightest and don't see anything wrong with it. 

You also posted;

” . I'm just tired, full of anxiety, on meds for insomnia and depression. ”

Which doesn’t really tie in with what you are posting now.

Which is it, you’ve chosen to live a contented, low stress life rather than one of worry by trying to do well at work, or you’re suffering from anxiety and depression?

Both. Up. Down. Happy. Sad. All over the shop. Up. Down. Again and again. Mood swings. Major mood swings. 

I'm a functioning nutcase, to put simply.

If that's the case, why (purely out of interest) do you post on this forum?

Because I managed to get myself out of debt about 1.5 years ago.

We're talking major debt. Years of it, 35 plus grand 16 years ago.

I know I don't belong here.. trust me, I do.

I don't see any reason why you shouldn't be on this forum along with everyone else.

John_

Mr_Maths said:

@John_ I spent 8 years trying to leave but kept getting rejected everywhere. Another reason why I've become disillusioned by it all.

I’m sorry to hear that. 

bobthelog

The problem is the law of diminishing returns:
In simple terms to explain the economic theory: let's say you go for a walk on the beach, you walk past the fish and chips shop. You're cold and starving and you really REALLY fancy some fish and chips. So you go in and get some. That first munch of food is like the best fish and chips in the world as you're so hungry. (AKA The return on you eating the fish and chips is "ginormous"). You eat more and by the 5th mouthful you are still really enjoying the fish and chips but it's not as good as that first bite (AKA: The return on eating the fish and chips has gone from "ginormous" to "brilliant", let's say). After you have eaten them all the fish and chip owner gives you some more as he's finishing for the day. By the time you have finished the second lot (if you can eat that much) you are thinking, "I never want to see another portion of fish and chips again!!" (AKA: The return on eating fish and chips has diminished to "rubbish", there are no returns and the only way you would eat any more is if your life depended on it.).

Swap this to you have won the lottery and buy a Ferrari - wow! Cool, right! Your first drive is awesome! You can't believe you are driving your very own Ferrari! Within a relatively short space of time, maybe a few weeks or months, "it's just a car".

This is the law of diminishing returns and it's a uniquely powerful concept of how the human mind works.

So to relate to your example. You earn £20K. You live wherever you live and spend money on whatever you spend it on. I will make a wild assumption that you have nothing left of your wage the day before pay day. I will make another wild assumption that your friend, on £45K per year, also has nothing left the day before pay day. I will make an even wilder assumption that someone on £250,000 per year ALSO has nothing left in the bank the day before pay day. This is due to the law of diminishing returns. You earn more, you spend more, you go out more, you buy posh clothes/car/house and load up your credit cards. Earning more money gives you more stress as buying more valuable things is expected of you, "you can't turn up to work in that! We pay you good money! Buy some clothes!" for example. You earn £250,000 per year and are invited out for dinner. You can't exactly go to Tesco for a suit  and turn up in your 5 year old Renault Clio, can you?

People say that "money is the root of all evil" but that is incorrect. The bible actually says, "the LOVE of money is the root of all evil". 

So, never worry about the money, worry about how you spend your time, because time is a much greater commodity than money. Do things you love, find a job that you can't believe they actually pay you for, as you'd do it  for free anyway, you love it so much. Then you will realise that your friend can keep his £45K and mine can keep his £250K and his Ferrari. 

In my life I have sipped cocktails from the top of the Rockefeller centre at a VIP function. I have partied in a roof terrace overlooking the Thames. I have drank fine Sancerre and eaten lobster in Easter Island. All of these things combined are not even close to eating a bag of chips on the beach with my best friend.

Kantankrus_Mare

bobthelog said:

The problem is the law of diminishing returns:
In simple terms to explain the economic theory: let's say you go for a walk on the beach, you walk past the fish and chips shop. You're cold and starving and you really REALLY fancy some fish and chips. So you go in and get some. That first munch of food is like the best fish and chips in the world as you're so hungry. (AKA The return on you eating the fish and chips is "ginormous"). You eat more and by the 5th mouthful you are still really enjoying the fish and chips but it's not as good as that first bite (AKA: The return on eating the fish and chips has gone from "ginormous" to "brilliant", let's say). After you have eaten them all the fish and chip owner gives you some more as he's finishing for the day. By the time you have finished the second lot (if you can eat that much) you are thinking, "I never want to see another portion of fish and chips again!!" (AKA: The return on eating fish and chips has diminished to "rubbish", there are no returns and the only way you would eat any more is if your life depended on it.).

Swap this to you have won the lottery and buy a Ferrari - wow! Cool, right! Your first drive is awesome! You can't believe you are driving your very own Ferrari! Within a relatively short space of time, maybe a few weeks or months, "it's just a car".

This is the law of diminishing returns and it's a uniquely powerful concept of how the human mind works.

So to relate to your example. You earn £20K. You live wherever you live and spend money on whatever you spend it on. I will make a wild assumption that you have nothing left of your wage the day before pay day. I will make another wild assumption that your friend, on £45K per year, also has nothing left the day before pay day. I will make an even wilder assumption that someone on £250,000 per year ALSO has nothing left in the bank the day before pay day. This is due to the law of diminishing returns. You earn more, you spend more, you go out more, you buy posh clothes/car/house and load up your credit cards. Earning more money gives you more stress as buying more valuable things is expected of you, "you can't turn up to work in that! We pay you good money! Buy some clothes!" for example. You earn £250,000 per year and are invited out for dinner. You can't exactly go to Tesco for a suit  and turn up in your 5 year old Renault Clio, can you?

People say that "money is the root of all evil" but that is incorrect. The bible actually says, "the LOVE of money is the root of all evil". 

So, never worry about the money, worry about how you spend your time, because time is a much greater commodity than money. Do things you love, find a job that you can't believe they actually pay you for, as you'd do it  for free anyway, you love it so much. Then you will realise that your friend can keep his £45K and mine can keep his £250K and his Ferrari. 

In my life I have sipped cocktails from the top of the Rockefeller centre at a VIP function. I have partied in a roof terrace overlooking the Thames. I have drank fine Sancerre and eaten lobster in Easter Island. All of these things combined are not even close to eating a bag of chips on the beach with my best friend.

What a fantastic post!! Love it!

[Deleted User]

steampowered said:

Am I the only one who finds this thread a bit depressing? There is a stark lack of ambition! What happened to working hard and being the best you can be? 

Perhaps this is because I am still in my thirties. I suppose I might be looking for a quiet life by the time I get to my fifties !!!!

I do not see £45k as a large salary at all, though my attitude is probably skewed by living in London.

Became extinct a long time ago 😕

Sandtree

Mr_Maths said:
After being rated significantly above target at my appraisals and getting a minimal pay rise even though my managers themselves would tell me I'm underpaid and then ending up being made redundant, its made me think what's the point.

There will always be exceptions of cause but you get promotions by staying with a company (at least until you get to a Head Of type level) but you get pay rises by switching companies.

[Deleted User]

Mickey666 said:

AskAsk said:

it is a balance between comfort, security and enjoying your life.  everyone loves to doss around doing what they want, so you could decide that you will only work so much to earn enough to live on and spend the rest of the time doing what you enjoy and spending time with your family and friends.

but to some people, having nice things and being to buy things, to go on big holidays, to send their kids to private school etc is more important than enjoying themselves daily dossing around.

Yes, it is a balance, but I'd say it's also a matter of timescale.  You could aim for (more-or-less) the same lifestyle over your entire lifespan or you could plan for major changes.  In my experience most people seem to drift into a steady state over their entire lifetime, or at least their working lifetime. . . sometimes described as being stuck in a rut because they actively avoid change.

I've done the 'high-powered' job thing - big salary, responsibility for around 50 people, tough targets, jet-setting around the world on expenses, board-room battles, etc - but I never envisaged sticking with it forever.  I probably couldn't have stayed the course anyway, even if I'd wanted to, and was always plotting my escape from this 'rut'.   Along with the stress and long hours came the rewards you mentioned, which were fun and undoubtedly valuable at the time but which I knew would not last. So, as the saying goes, I made hay while the sun shone.  Most importantly, knowing I was planning an early exit made it all fairly stress-free.  Board room battles could be ruthless on the surface but underneath it was all just a game to me and even the worst case of being fired didn't really bother me because I'd built up significant financial security - mortgage-free, no debts, school fees covered etc) and had already negotiated a decent severance package in my employment contract - the sort of thing you can do in a 'high-powered' job. 

Long story short, I never anticipated living that lifestyle forever, it was just one period in my life.  A means to an end.  It was fun while it lasted but more importantly it bought me the freedom to retire before my 50th and then spend the rest of my life in financial security and pursuing all my main interests.  I liken it to being at uni, totally broke and living in a slum-like HMO - it's only bearable because you know it's temporary and an investment for the future.  Plus, when you're young, fit and enthusiastic you can more easily withstand such deprivation, especially when you know it's only temporary.  OK, a 'high-powered' job is hardly deprivation, but it's not easy either . . . unless you plan for it to be temporary, which is where - in my view - most people fail to plan.   It's too easy to fall into a 'rut' when there is no alternative ambition or 'life-plan'. This thread contains the proof.

Of course, hindsight is a wonderful thing and I don't pretend I had everything planned down to the fine details.  That would be almost impossible.  But having a few key ambitions and objectives gives you a plan against which to rate your progress in life and to make more informed decisions about the various opportunities we are presented with throughout our lives.

The following quote or saying has always struck a chord with me: "Some people make things happen, some people watch things happen and some people wonder what happened" 

It's true.