Wealth: When is it ‘Enough’?

Wealth, Who Decides How Much Is Enough?

I often think about how much wealth is enough. A study done in 2010 that stated the amount after which happiness plateaus is USD 75000. Then there was recent research that pecked the number at 500,000 USD. But then this is for the happiness of someone living in the USA. For someone in India would the amount be its Indian equivalent of 62 lakhs(6.2 Million Rupees)?

Well this is wrong, then exactly how much wealth is enough?

It Is Impossible To Generalise Wealth

I think getting to a number that covers everyone is impossible.

Any amount of wealth that covers your needs is sufficient. I would define my needs as food, a place to stay, healthcare, and access to loved ones. Also water, electricity, and internet. Access to loved ones can be defined as sufficient wealth to reach your loved ones in their time of need. You might think there are plenty who live without electricity and internet across the world. The thing to keep in mind is that these are the needs I defined for myself. None of the things I mentioned is something I need to impress others. It is for what I need to live a happy life, and I think that is the key. These needs are not one size fits all and could be different for different people.

We buy things we don’t need with money we don’t have to impress people we don’t like.

Buying Things We Don’t Need

The capitalist markets of today have blurred the line between what we need and what we have.

Let me tell you a story about a couple who used to live in a village.

Happy Couple

The couple used to work in their little garden. They ate whatever they grew and sold whatever extra they had for some extra cash. Daily morning the wife used to walk a couple of miles to the nearby lake for fresh water. They were content and happy with their sustainable living setup.

Capitalism knocks

One day a wealthy merchant visited the said couple and said to the wife,

‘ It must be so tough, walking so far daily to fetch fresh water for the house’.

The merchant offered to build a pipe. The pipe would run from the freshwater lake to her house. This was to ensure that she would no longer have to walk all the way to fetch water daily. Although the wife personally had never thought of this being a problem, the businessman was able to convince her otherwise. She asked the merchant ‘What is in it for you?’. The man replied all you have to do is pay me a rent for water being supplied to your house. Initially, the woman was hesitant but then agreed because of the way it was presented to her. The husband was okay too since he believed they made enough money to afford this convenience.

A few months passed. The couple went on with their lives and got used to the convenience of water reaching their home. The merchant became a regular visitor and they formed a friendly relationship. On one such visit, the merchant brought a dishwasher and a washing machine. He successfully leased it out to the couple as he had gained their trust. A few months passed, and the couple got used to the convenience.

Wealth Without Happiness

The merchant returned in a few months. He wanted to set up a new factory in the same village. For this huge investment, he would have to increase the rent on appliances and the water supply. Otherwise, take the appliances back to give to someone who can afford it.

The couple were distressed. They were used to the convenience of these appliances, it had become a need for them. But they just had enough to pay rent as it was.

The merchant said that is alright, you can work in my factory and I will pay you for labor. He added if they joined they would be able to afford the said conveniences. They would have a surplus for buying food from his new market. The couple bought into the idea and started working in the factory 10 hours a day. Life became a bit of a struggle. Now they had less time for each other also they became dependent on the merchant for their well-being.

What do you think, are they better off now, or were they so before?

Creating A Need From Wants

This is how capitalism works. It creates a demand for things you may not need, and make you work for it. This does not mean I am not entirely against capitalism. I believe capitalism has led to the growth of the world in much of the last 100 to 200 years. But sometimes even when we are satisfied with the life we are living, we get enticed by new things. A potential upgrade in lifestyle.

There is nothing wrong with gaining wealth and upgrading your lifestyle, but you should always do a cost analysis. The cost in this case is not just money but the sacrifices you have to make to upgrade. Only after proper analysis should you work out if it is time for you to increase the enough you seek.

Conclusion

It is impossible to get to a magic number that tells you. If you earn this much per year, then you will be happy. This limit varies a lot. It depends on the country you are in, the life you have lived so far, your passions, etc. Some people are happy living a quaint life in the countryside away from the noise of the city. For others like me, life in the city is what motivates you. Some people are happy to work all their lives and keep earning and buying new things. Some are planning on retiring early, reducing their needs, and traveling the world instead of hoarding materialistic things.

Now it is only you who can decide how much is enough. Make sure to account for what sacrifices you would be making to increase your circle of needs.

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