Comparison is the thief of joy.
The United States is the global leader in despondent millionaires.
The root of this unnecessary misery is a psychological phenomenon called relative deprivation.
Wealth satisfaction correlates with local comparisons. This means if you live near a place like Greenwich, Connecticut your local wealth comparison are billionaire Hedge Fund Managers. Using this as a benchmark will make your $5 million seem like chump change.
Why is this insane? When all else fails, let’s take a look at the facts.
UBS created a Global Wealth Pyramid to put things into perspective.
Here are some fun facts for those crying over their multi-millions.
- You’re in the top 1.6% of all humanity with a net worth of $1 million. That is equivalent to being in the top 60 million of a global adult population of 3.8 billion.
- The global wealth median is $8,800. Someone with a $2 million net worth has roughly 225x the wealth of a typical adult.
- In most countries the top 1% has a net worth of $1 million or less.
- Relative Deprivation is real. Comparing yourself to US tech billionaires is a loser’s game since they make up the top 0.001% of global net worth.
Looking up to a tiny, hyper-visible elite instead of taking in the actual global wealth distribution is hyper charging relative deprivation.
Doing this is similar to playing in a local softball league and hitting a HR but being disappointed because the ball didn’t travel as far as one of Aaron Judge’s moon blasts.
If you did this, your friends would tear you apart for your lack of self-awareness and inability to enjoy yourself playing a kid’s game.
Why should this be any different concerning your money?
The other day I was volunteering at a local Community Garden. I got to talking with someone while planting and she told me her son gave her a large garbage can full of compost for her birthday.
It wasn’t just regular compost , it was garnered from a local horse farm and was literally black gold for gardeners.
She was ecstatic! I told her I would love that gift and she was so lucky she had family who really understood her.
Maybe that’s the solution.
How about doing things because you enjoy them. Life isn’t an Instagram post designed to impress others. You will never approach real happiness if you grant that power to the actions and approval of strangers.
My colleague, Nick Maggiulli, offers some great perspective.
Looking down instead of up provides invaluable perspective on most things, especially your money.
Wealth is infinite when measured upward, and extraordinary when measured downward.
If a pile of dirt makes you happy, you’re on to something.
Millionaires aren’t losing the game, they’re just looking at the wrong scoreboard.
My advice – Go find your own special pile of dirt and ignore everything else.
