You’re Richer than you Think

Here’s a little thought exercise. If a person makes $200,000 a year, do they have more in common with the person making $50,000 or the person making $2,000,000?

2,000,000 is ten times more than 200,000, and 200,000 is only four times more than 50,000. So there’s your answer, right? Wrong. Even though the dollar amounts might be closer, the lifestyle is not. A person making $200,000 has way more in common with the person making $2 million than they do with the person making $50,000.*

On a certain salary, there are things you flat out can’t do. You can’t pay for multiple streaming services. You can’t order whatever you want off the menu. You can’t travel to Italy. But once you reach a certain level of income, you can do all of these things. That’s why there is a bigger divide between the haves and have nots than the haves and have mores.

On a 7-figure salary, you could fly first class, and you could stay in a nicer room at the hotel. But the person making $200k is flying on the same plane, going to the same place, and staying in the same hotel.

Making more money when you’re already making enough doesn’t provide additional happiness. At least not real happiness. There might be moments here and there, but they’re fleeting.

When you view money this way, it makes you realize that you’re probably richer than you think.

*I know there are a million caveats to this. Where do you live? Do you have a family? And on and on. I’m trying to make a broad point that does not apply to everybody’s individual circumstances.