Written by:
Menu
Written by:
In a world where the gap between the wealthy and the less affluent seems to be widening, individuals who find themselves on the higher end of this spectrum face unique challenges, especially when their financial success is different from their loved ones. The common belief that more money equates to more happiness is something that many affluent individuals discover to be far from the truth. Achieving financial success can bring about its own set of complex issues, particularly in maintaining relationships with family and friends who may not share the same level of wealth.
This blog explores the challenges of navigating wealth among less affluent loved ones, offering practical advice and strategies to foster healthy relationships and use wealth in a manner that supports happiness and fulfillment.
Understanding Your “Money Temperature”
Just as we have comfort zones with physical temperatures, our spending habits can create a “money temperature” – a range within which we feel comfortable and accustomed to living. Adjusting this set point, especially downwards, can be a difficult task. It’s easy to increase spending as income rises, but reducing it can feel jarring and uncomfortable, impacting not just the individual but also their relationships with others.
Potential Issues of Financial Discrepancy
When there’s a significant income gap between you and your loved ones, it can lead to misunderstandings and strained relationships. The assumption that financial wealth eliminates all forms of stress or responsibility is a common misconception. This gap can also lead to false assumptions about the ease of providing financial support, potentially harming relationships rather than helping.
Strategies for Navigating Wealth and Relationships
The Importance of Intention
With all of these strategies, the underlying theme is intention. Every action, whether it’s spending, offering support, or setting boundaries, should be guided by thoughtful consideration of its impact on relationships. Wealth, when used wisely, can be a tool to enhance happiness and relationships, but it should never replace the foundational elements of human connection.
Navigating wealth in the context of varying financial backgrounds among loved ones requires a delicate balance. By understanding the psychological impacts of wealth, practicing empathy, and fostering meaningful experiences, affluent individuals can build and maintain healthy relationships that overcome any financial differences. Wealth can indeed support happiness and fulfillment, but it requires a conscious effort to align financial resources with the values and relationships that truly matter.
In just 15 minutes we can get to know your situation, then connect you with an advisor committed to helping you pursue true wealth.
Add me to the weekly newsletter to say informed of current events that could impact my investment portfolio.
Important Disclosures:
Securities and advisory services offered through EWA LLC dba Equilibrium Wealth Advisors (a SEC Registered Investment Advisor).
* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value. However, the value of fund shares is not guaranteed and will fluctuate.
* Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.
* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.
* All indexes referenced are unmanaged. The volatility of indexes could be materially different from that of a client’s portfolio. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. You cannot invest directly in an index.
* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.
* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
* Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.
* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
* The Dow Jones Industrial Average (DJIA), commonly known as “The Dow,” is an index representing 30 stock of companies maintained and reviewed by the editors of The Wall Street Journal.
* The NASDAQ Composite is an unmanaged index of securities traded on the NASDAQ system.
* International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
* The risk of loss in trading commodities and futures can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. The high degree of leverage is often obtainable in commodity trading and can work against you as well as for you. The use of leverage can lead to large losses as well as gains.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
* Past performance does not guarantee future results. Investing involves risk, including loss of principal.
* The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee it is accurate or complete.
* There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
* Asset allocation does not ensure a profit or protect against a loss.
* Consult your financial professional before making any investment decision.
In 15 minutes we can get to know you – your situation, goals and needs – then connect you with an advisor committed to helping you pursue true wealth.
EWA, LLC dba Equilibrium Wealth Advisors, is an SEC-registered investment advisory firm providing investment advisory and financial planning services to clients.
Investments in securities and insurance products are not insured by any state or federal agency.
To view EWA’s public disclosure, registration, Form ADV and Part 2B’s, click here.
To view EWA’s Client Relationship Summary (CRS), click here.
*See reference 1 and reference 2 for more information about the above-mentioned statistic.
COPYRIGHT 2024 EWA, LLC. ALL RIGHTS RESERVED
In 15 minutes we can get to know you – your situation, goals and needs – then connect you with an advisor committed to helping you pursue true wealth.