“Ah, the prices are shooting up almost every day, the pay is stagnant. Result? I am running out of money. Expenses are ready to sweep away my cash, thanks to debts I owe to get by. I am struggling to keep up with payments, and lenders are chasing, threatening and warning me. All of a sudden, this all has become a nightmare, and I do not know when this will end. I wish I were rich. If I were moneyed, such problems would not rise.”
Money, money and money: the only solution to all problems. Well, if you think so, you are all wet. While facing financial problems, you eventually realise the importance of money. A single penny seems worth thousands of pounds. When you start struggling with money problems, you dream about being rich.
It is a common idea that being rich is always better – at least you do not have to worry about your finances. There are no worries like the rising cost of living, outstanding debts, and how to get by in the absence of income.
However, this could be true only in your imagination. The proof is in the pudding. Ask those who are really well-off.
The downsides of being rich
One of the downsides of being rich is that you cannot complain about any problem ever. Since you have become rich, most people assume that you will no longer feel frustrated about anything. You cannot do it in the public. You will stay calm and composed and show that you are as happy as a clam even though your inside is screaming. Many people feel like they are not being treated like human beings as they become rich.
Another downside of being affluent is that more and more people will be nicer to you, and it will be harder for you to figure out if they are nice to you because they admire you or if they are into your money.
Some people are addicted to money to the extent that they keep making money and money and do not mind if they manage to build such whopping wealth at the cost of family relations. When they lose something precious, they realise that money can buy only comfort but not happiness.
Does that mean being rich is not better at all than not being rich?
No, being rich certainly has few benefits. It is true that you do not have to worry about money anymore. You do not need to take out loans to fund your small emergencies, or you do not have to worry about stretching your money to get by. If you are jobless, you do not need to rush to take out loans for the unemployed. Yes, there will be some expenses you cannot afford, but most of them are done without considering how much they would cost you. This will actually make you feel better, undoubtedly.
Another benefit of being rich is that you can spend money frivolously. You will spend here and there throwing your caution to the wind, yet you will remain stable. When you have a lot of money, you will have the freedom that others will not have. You can take a long vacation, for example, and you do not have to think about your job or business or how you will manage your expenses when you come back home. This might not be a chance for others who are forced to take out instant cash loans to finance emergencies due to a lack of money.
A lot of wealth will bring forth higher expectations
In the beginning, you like to roam in BMW, eat in fancy restaurants, and plan expensive international trips, but then you become addicted to it, and everything below that standard falls out of your favour. Setting up higher expectations could also lead to frustration in you. You will tend to make more and more money to achieve satisfaction one level up each time.
You can tackle your money problems even though you are not wealthy
You might want to become better off, but that is what is in the lap of the gods. Do not assume that those who live in the lap of luxury will never ever face any financial problems. There are certain things that they will struggle to pay for and wish they could. If you are not rolling in money, it does not mean that you will always be up to your neck in debt or cut corners to get along.
Here are some of the tips to be in command of your money:
- Keep tabs on how much money you spend for one full month, and it adds in even the tiniest expenses, such as newspapers, magazines, lunches, cups of coffee and drinks. To stay on top of your money, you must know how much your lifestyle costs you.
- Pay all your bills on the due date. It makes sense to choose a direct debit system. However, your account must always have sufficient money to make it successful. Find out how much your salary will go toward your debts and fixed expenses so you know how much you can utilise for other expenses like food, travel, entertainment, shopping and utilities.
- Make a record of every month’s expenses so you can track which month you spent the maximum amount. Find out the reason and balance your savings if you dip into it.
- Do not take out a loan if you do not need it. If you have to borrow money, shop around in search of attractive interest rates.
- If money is tight, your debts must be the priority to anything else. Talk to your lender if things are not in control.
The bottom line
Being wealthy can actually bring a lot of comfort, but there are still some expenses that could be beyond your buying power. However, it does not mean that people who are not well-heeled cannot stay on top of your expenses.
Anna Johnson has more than 11 years of experience in direct lending industry of the UK. She is the Senior Content Editor at 24cashflow where she is leading a large team of loan experts. During her career, she has helped the loan aspirants to use the particular loans in the best way and improve their financial lives and status.
Anna Johnson is known for her in-depth research of the UK loan marketplace, as she has worked with many major lending firms in her career. During her educational phase, she has done a research on ‘Finance Fundamentals for Growing Business’.