No. 9: Really rich people understand that net worth is not self-worth

Posted Dec 5th 2008 2:15PM by Daniel Solin
Filed under: Getting Started, Rich in America, Personal Finance

This post is part of a series where personal finance expert Dan Solin looks at money secrets that help the rich stay rich. See more.

It always seemed to me that most people who said that money can't buy happiness didn't have much money.

It would be more accurate to say that if your unhappiness has nothing to do with money, wealth won't make you happy.

The harsh reality is that most of us need a certain amount of money to pay the bills and hopefully provide for retirement with dignity.

Investors who follow the basic lessons that rich people know will be taking a positive step in the direction of responsible, intelligent investing that will help them maximize their returns.

Really rich people understand that money can't buy health. It also can't buy meaningful relationships with family or friends.

This is not just idle chatter. Studies have shown that people who are isolated from society, without meaningful relationships in their lives, have a risk of death comparable to cigarette smokers.

Really rich people invest intelligently and responsibly. They are are also deeply concerned about their physical, spiritual, intellectual and emotional health and about their community.

This kind of "wealth" is worthy of your best efforts.

Dan Solin is the author of The Smartest Investment Book You'll Ever Read (Perigee Books, 2006) and The Smartest 401(k) Book You'll Ever Read (Perigee Books, 2008).

Tags: happiness, health, secrets of the rich

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Reader Comments (Page 1 of 1)

12-03-2008 @ 1:44PM

heidi said...

i have been rich and I have been poor. I am much happier now that i am poorer than when i was rich altough now poor and happy can think of all that i could do with the money to be rich and unhappy again!

1-07-2009 @ 4:50AM

Kate Phillips said...

Nice post, Daniel. I agree with you completely that it's not an either-or game. "Really" rich people practice self-care physically, emotionally, mentally, in relationships, AND financially.

I see the recent suicides and the Madoff scandal, and I think those people have completely confused self-worth and net-worth. Very sad, but I don't think typical (although people without money love to think that wealthy people are miserable).

I wrote a peice on Madoff yesterday, titled "Heroes, Villains, and Slippery Slopes":

"It's fundamentally a Scarcity of Spirit.... It's a lie that equates our financial worth with our self-worth, and tells us it is better to be dishonest (but admired) than honest (and scorned)."

blog at http://thegardenofplenty.com