Let's talk about money

1. How much is enough? 

In 2013, Robert and Edward Skidelsy wrote a book "How Much is Enough?" highlighted that most of the people are already blinded by greed and this has already compromised their quality of lives.

2. How will your wealth affect your next generation?

Your wealth will have a direct impact on your life, it will have an effect on your choice on your spouse, senses of happiness and life expectancy. Your wealth will also have an impact on your next generation.

a. Spouse
According to a 2013 survey conducted in China for online dating services, 52% of the man will focus on the looks and 63% of the woman will focus on income level and wealth of the man. 

b. Level of Happiness
In 2015, the average GDP of Americans stands at 55,600. Most of the people feels that an annual income of USD 110,000 will be the happiest.

c. Life Expectancy
The rich can afford better medical health treatment than the poor. In 2013, there was a study conducted in 2002 in South Korea, the highest 20% man income level group has an average life expectancy of 77.1 years old whereas the lowest 20% man income level group has an average life expectancy of 67.4 years old. That is a difference of about 9.7 years. The highest 20% woman income level group will be 82.6 years old whereas the lowest 20% woman income level group will be 78.8 years old. There is a small age difference of 3.8 years old. 

d. Effect on next generation
If the parents are poor, they won't be able to afford tuition for the children and their results cannot compete with the classmates, affecting their ego and confidence level. Except for a few minority who are self motivated, most of the children from low income family will be faced with disadvantages and challenges.This will create a vicious cycle in poverty. 

3. If your money is not enough, what will you do?

a. Part time work
Most of the people will like to make additional income and they tend to trade time for money. There are people who held two jobs to make ends meet. However, as time goes by, it will take a toll on the body and affect the health. In addition, most part time work only pays miserable hourly rate. I do know friends who will drive Grab and Uber to supplement their income.

b. Wealth Management
76% of the wealthy people are the first generation entrepreneurs, investors and top management. The remaining 24% inherited their wealth and they belong to the 2nd or 3rd generation business owners.

In next post, I will touch on how investment will help to shortcut this journey to achieve financial freedom.