The Fallacy of Wealth

Being involved in the high-adrenaline world of professional accounting for 30 plus years has given me many realisations.

The fact that our tax laws are incomprehensible to the average person (and indeed a lot of above-average accountants in some cases).

The fact that governments will generally never get it when trying to understand businesses and what it’s like to run one (whether large or small).

And sometimes the extent to which psychology and self-awareness impact the decisions we make.

It’s this last point that’s provided the biggest realisation I’ve ever had.

Nobody gets richer.

Sure, their business may increase its performance through measures such as net profit, cash and net wealth.

But I’ve very rarely seen people who are significantly happier for it.

Don’t get me wrong.

Getting ahead in Australia is a worthwhile goal and sure beats the alternative.

It’s why we strive to improve our businesses by providing more value and solutions.

But there comes a point where an increase over and above a certain level of wealth doesn’t equate to a corresponding increase in happiness, joy, contentment .. whatever you want to call it.

Plenty of studies have examined this exact point.

Maybe it’s because we live in a consumer society where economic, monetary and societal policies pressure you to consume all the time.

Or because in trying to achieve our financial goals, sacrifices generally have to be made in other areas of life which can negatively affect our emotional, mental and physical welfare.

And even when we do attain our financial goals, we then tend to worry more about keeping our wealth, which is a point I mentioned in I’m Different … Deal With It.

So we lose out on richness in many areas of life.

• Richness in our financial lives because we spend our time worrying about keeping the money we’ve made or spending it as quickly as it’s made.

• Richness in our physical lives because we sacrifice the care of our body in the pursuit of attaining a monetary goal.

• Richness in our relationships because we shun the people who care for us and can help us.

• And richness in our own mental and emotional well-being.

I remember once hearing something that I believe is very profound.

“Nobody ever gets richer … they just attain a higher level of relative poverty”.

I think there’s a lot of wisdom in that saying.

So why are we talking about this?

Wondering what on Earth an accountant is doing by talking about something that has nothing to do with tax?

Perhaps it’s because by knowing people more, you can understand their fears and concerns more and can then be in a better position to help them.

And sometimes that has nothing to do with their business … but can end-up helping their business.

Agree with what I’ve said in this article? Disagree?

Either way, let me know at www.sculptaccountants.com.au/contact/.

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Until next time.

Please Note: These articles are provided for education purposes only and should not be construed as specific advice. Always seek professional advice in relation to your personal and business circumstances.