Hello beautiful people, i was attending my Economic lecture today in school. I must say that our lecturer is a very wise teacher and i can see that he has certainly experienced and realized a lot of life values.
When i turned 18, i told myself that i wanna be a rich girl when i grow up. I can do whatever i like and i will be the happiest person on Earth- cause i've got all the money that i want. I was dreaming about traveling to different countries, enjoying life, driving luxury car, owning properties and having like a really big business. My dream was this big that it forced me to study damn hard. I was so focus on getting more money, i started working non-stop when i turned 18. Fortunately i got introduced to some high-paying jobs at my age and i was glad. I was happy, for a period of time. Cause my income column keeps coming in. And i started spending- buying new clothes, eating at restaurants, traveling only by taxi and etc. I was really happy then because i have so much money to spend at this age of mine!
Well, this joy definitely didn't last long. Although money was still coming in, i realized that i wasn't as happy as before. I realized I had neglected my love ones. I became unhappy.
In addition, it has come to my attention that the world wasn't as beautiful as i thought it would be. I was disgusted by how people can react to certain things and do certain things. I didn't like what i was doing.
And then for these past 2 years, i was trying to find myself. What exactly do i want?
To be honest, this question made me think even harder these past 6 months. I asked myself everyday, "Do i want lots money but an unhappy life or just a normal but a really happy life? But money can buy a lot of things!"
Guys, don't answer this question too fast. Think about it first :)
And then my Econs lecturer was teaching us on the Chapter on Labour Supply. We use the utility curve to sketch the graph again.
And he said, "I know of many rich people. But they are not happy because they have a lot of burden- too much money. So i asked them 'Why not share your burden with me?' " (And the class started laughing)
He continued, "The richer they get, the less happy they are. Because to be successful, you have to be ruthless and do things beyond normal."
And this hits me....
It is true that the Substitution Effect is always bigger than the Wealth Effect unless one day you are earning 100k per month. You will feel the wealth effect. An increase in 1k pay per month for you will no longer make a difference to your life because money is no longer an issue to you. At this point of time, you seek for self-actualization- and that's the highest level of need in the Maslow Hierarchy of Needs.
But how many people can reach to the self-actualization point? We are too busy working all the time, trying to earn more money. Trying to fulfill what we dream about.
It takes damn lots of sacrifices, pain, and like what my lecturer says - to be ruthless, in order to be successful. The most ironic thing is that they are not happy now with all these money! Many people think they will be the happiest person on Earth when they have a lot of money.
It is not true anymore. From being poor to becoming super wealthy, you are gonna sacrifice a lot of things. I don't know if he has answered my question but at least i know now why some people just choose to lead a normal life- because they are already contented with what they have now. Just like my mum, she told me she is contented at this stage of her life. She don't aim to be rich, she just want a stable life with her love ones around. That's all she is asking for.
What about you? I'm sure some of you have big dreams. Are you ready for what's gonna come? Are you even up for it? Do you know what kind of sacrifices you are gonna make?
Some people might think that 5k per month is a lot, some people might think that 20k per month is not enough. It all boil down to only one question- How happy are you now?
Remember, knowing yourself in the beginning of all wisdom.
Good Luck :)