"Money often costs too much"
- Ralph Waldo Emerson
One of the perennial struggles of mankind has been the seemingly impossible ability to balance financial wealth with emotional contentment. In other words, does possessing a great deal of money automatically equate to higher levels of personal satisfaction and happiness? This is a rather interesting question and it can be argued that no single answer will suffice. However, it is equally important to address a component within the larger concept of a sustainable income: the methods employed to reach financial freedom and how they can exert a very real psychological impact. Let us examine this topic in greater detail.
Is Money the Root of All Evil?
According to biblical scholars, the answer to this question would be a resounding "yes". However, this is a difficult notion to digest when we consider the fact that the church has always been a source of inestimable wealth. What is more essential is appreciating how the act of obtaining money can affect the human psyche. For example, one study conducted by the University at Buffalo concluded that greater levels of wealth correlated to anxiety, stress and lower levels of perceived personal autonomy. From this perspective, it would appear as if living a Socratic lifestyle would represent the best option.
A Matter of Perception
It is just as important to appreciate the other side of the financial spectrum. A research project carried out in 1974 found that there was a very real correlation between per capita income and perceived mental stability. This only stands to reason, as those who are able to account for their material needs are less likely to experience issues such as health problems, debt and family conflicts. The primary takeaway point here is how personal income is perceived as opposed to the ways in which it is used to procure goods and services.
Those who are under the presumption that financial freedom is the wellspring of happiness are bound to be disappointed. Furthermore, having constant access to an unfettered amount of liquidity will often lead to poor decisions such as bad spending habits and irresponsible investments. It is therefore clear to see that the relationship between money and psychological health represents a double-edged sword.
Is Technology Changing this Perception?
It is pivotal to recognize that the majority of these studies were carried out before the potential of the Internet was understood (or fully appreciated). Therefore, we need to add another factor into the happiness equation. No longer does independent wealth necessitate working 50 hours or more per week. Indeed, the concept of working smart as opposed to hard now supersedes "slaving" for a daily wage. It is therefore no surprise that on-line investing has taken center stage in regards to generating a lucrative side hustle.
It is now possible to invest in a host of lucrative stocks from the comfort of one's own home or even while traveling back from the office. Checking the latest brokerage rates and fees online will enable novice traders to encounter the most accommodating platforms. This is the very same reason why CMC Markets has enjoyed such success in recent times. While there is no substitute for happiness, personal wealth can never hurt.