You want to be rich. Perhaps very wealthy indeed. Who wouldn’t? Debating the pros and cons of being wealthy seems as one-sided as a boxing match between Warren Buffett and Muhammad Ali.

However I’ve given this some thought – inspired by a strange and unfounded fear I’d be the £195 million winner in the EuroMillions – and there are quite a few bad points.

Don’t get me wrong – it’d be a nice problem to have. If you’ve just searched out ‘the pros and cons of being wealthy’ as a sanity check before accepting a briefcase of cash from the Premium Bonds people, take the money!

You can come back later to tell us how hard it is being rich. But let’s begin with the good points.

The pros of being wealthy

Unless you’re very religious, contrarian, or you’re visiting our planet ahead of the full-scale invasion from Mars, you’ll know how great it is to have money.

The esteemed rap poet Nas sums up the general picture as follows:

Clothes that I buy, Ice that I wear,
Clothes that I try, close your eyes
Picture me rollin, sixes, money foldin
Bitches honies that swollen to riches…

Mr Nas is a bit weak in rhyming the clothes he’s trying with those that he’s buying, but then he doesn’t need to try too hard.

He knows we’ve all dreamed of being rich. He just has to flick that switch.

At the very least, being wealthy gets you:

• Financial freedom
• Holidays anywhere
• A great home
• Funding for your pastimes and passions
• Good suits
• Excellent health care
• A swimming pool full of beautiful people in their skimpies
• Gold teeth

Feel free to substitute your own desires. (Personally I’d like an island.)

However as Morgan Housel writes in The Psychology of Money:

“Money’s greatest intrinsic value – and this can’t be overstated – is its ability to give you control over your time.”

Self-determination is at the luxury end of the hierachy of needs. And when you’re very wealthy, within reason you can do what you want, where you want, when you want, and a lot of the time with who you want.

But beware! Just like the baddies level up in a video game moments after you get a new weapon upgrade, so your money problems can mutate and come back stronger when you get rich.

The downsides of being wealthy

When I said this article was about the pros and cons of being wealthy, I meant it. Having a lot of money has drawbacks, especially if you get rich overnight.

Just consider the lottery winner’s curse.

Even making your own money won’t necessarily make you happy. I’ve met a fair few rich people over the years, mainly through work, and I’ve also read widely on the subject. And I feel confident in listing these negatives.

(I’m mostly talking about being really rich here – at least £10 million / $15 million net worth.)

Money (probably) won’t make you happy

Once you’re earning a surprisingly modest amount of the stuff, researchers say making more money doesn’t make you happier. Rich people get depressed, just like the middle classes. True, there’s no evidence that money actually makes you unhappy, but it could distract you from fixing your real problems. That said, more recent research suggests earning more money can make you happier – so who knows? And being poor is definitely hard work. So some money is definitely better than none.

The end of your goals and ambitions

You see this with children born into money, as well as people who built a company up for several decades and sold it too late to start another. When you have the money, what next? The trick seems to be to find a substitute to your old goal of achieving financial security. That’s probably why you can’t walk far in Africa without tripping over a philanthropist.

Being judged unfairly

People are critical of the wealthy, especially in the UK. You might give nearly half your money to HMRC, but you’ll still read that you’re a freeloading leech who doesn’t pay their fair share. In the US, entrepreneurs are celebrated, but newly-rich Brits will find many people waiting for them to fall. I saw it a lot in my old career. A self-made man or woman leaves the room, and someone says “well, he was lucky” or “she’s out of ideas” or even “what a dick”. Not nice, but it happens. Then again I’ve also noticed newly-rich people can be terrible for a year or so, before reverting back to their old selves. So if you only got rich six months ago, perhaps you are being a bit of dick.

Someone is richer than you

Rich people are human, too. Your yacht isn’t as big as the one next door, or you had to buy your furniture, unlike your neighbours who had theirs passed down from the 17^th Century. Nobody is the richest person in the world on every measure. How many billions would Buffett give to be young again? And anyway, in an increasingly digital world many of the best things can be enjoyed equally as well by normal people as by billionaires.

Guilt

Money can’t buy the love of your friends and family. “Don’t feel bad about being rich,” they say. But do you believe them? One has a broken boiler, another has a child with special needs. And then there are distant relatives who can’t afford nursing care. Do you help them all? Can you? Should you give all your money away? Where do you draw the line?

Being rich is a big deal

Buy a country house and you need staff. Invest your millions and you need accountants. They might move your money offshore, and now you don’t understand the taxes. Perhaps you’ll go to prison for tax evasion? But you’ve no time to read up, because three different architects are coming over to quote on your summer home. You need to brief the security guy about that. Except he’s getting off with your disinterested wife in the boat shed. You think you’ll be different? So do I. Didn’t they?

Scams and fraudsters

One reason you’ll employ all those professionals is because you’ll need help warding off the crooks attracted to your wealth. Nobody was pretending to be you when you owed the bank money. But now you’ve millions parked away it’s a different story. Let’s hope your financial advisers aren’t swindlers, too.

I love you (and your money)

The big one. Does she really find you fascinating, or is it just your bank balance? Is he really won over by your beauty, wit, and experience, or does he just hope to bleed you dry while banging the French au pair?

Money can be all-consuming

The most surprising thing you’ll read in How To Get Rich by Felix Dennis is when he urges you to stop with money after you make a few million. Beyond that you’re wasting your life.

The incredibly rich founder of Maxim magazine wrote:

“Let me repeat it one more time. Becoming rich does not guarantee happiness. In fact, it is almost certain to impose the opposite condition – if not from the stresses and strains of protecting it, then from the guilt that inevitably accompanies its arrival.”

And he should know.

To conclude with the rapper’s perspective, what I didn’t tell you earlier is that the lyrics were from a song called Hate Me Now, in which Nas laments the ill-feeling his wealth inspires out on the streets.

The bard sums up his frustrations thus:

You wanna hate me then hate me; what can I do
but keep gettin money, funny I was just like you
I had to hustle hard never give up, until I made it
Now y’all sayin that’s a clever nigga, nuttin to play with

Of course, the single was a hit and it made Nas even richer. Just like Dennis’ How to Get Rich book is a bestseller.

Being wealthy has its rewards, but irony – that’s priceless.

Do you think the pros and cons of being wealthy are in balance? Would you rather be rich or just comfortable? Share your thoughts below.

A wave of early retirees are fuelling wage inflation according to Dame Sharon White, the boss of John Lewis.

The Great Resignation was not a myth and it’s contributed to the tightest UK labour market in 50 years. 

And White told the Today programme that the missing workers are “predominately people in their 50s” and that she would: “…encourage any government to really think much more about how we encourage more people back into work.”

This isn’t working

Mein Gott! Are happy early retirees about to be caught in a crossfire of high inflation and social coercion? 

Will we be forced at bayonet point to do routine data entry tasks, buy caramel lattes, and participate in thought showers in government re-orientation camps?

Probably not. Only 28% of White’s missing 50 to 59-year-olds dropped out of the workforce in order to retire, according to the ONS.

Rather it seems the pandemic itself, stress, caring for others, illness and disability, and being made redundant all featured strongly in the lives of those who bolted for the exit. 

And while the over-50s’ economic inactivity rate has certainly spiked in 2021, it’s only gone back to 2017 levels: 

Source: ONS. ‘Movements out of work for those aged over 50 years since the start of the coronavirus pandemic.’

The data Jedi at the ONS show that the over-50s actually increased their economic activity rate every year from 1971 to 2020. 

The pandemic was the turning point. 

So perhaps it’s premature to pin the blame for inflation on a section of the workforce who were vulnerable to Covid and may yet come back. 

The Institute for Employment Studies says that worker shortages are already easing. It also points out that the double whammy of Covid and Brexit has robbed firms of their ability to react swiftly to changes in demand.

We’re getting a more rounded picture now, eh?

But White does strike a nerve because retirees and aspiring FIRE-es know that endemic high inflation can undo their best-laid plans.

Gonna make you sweat

So let’s say your FIRE (Financial Independence Retire Early) sums stop adding up.

Could you face going back to work? What would be your terms? 

It’s worth all retirees thinking about this. Call it a backup plan. 

I’ve already confessed that strictly speaking I didn’t stop working after I called time on my career. 

Monevator doesn’t write itself you know. (Not until Blenderbot gets a bit less lippy anyway.)

I still consider myself retired, but I make some pocket money from my writing hobby. 

And here’s why that little bit of work has proven to be a good thing:

• I work when I want. 
• If I don’t want to do it then I don’t have to. 
• I enjoy the challenge. 
• It utilises a skill that would otherwise rust. 
• It helps me feel slightly useful. 
• I get positive feedback. Sometimes. 
• I enjoy the community – both interacting with the Monevator massive, and working behind the scenes with site founder TI to ensure Monevator remains a cult success that never hits the big time. (Coz money is for sellouts, yo!)

Let’s not forget the traditional work negatives that no longer apply either:

• No commute.
• No chronic stress. Only positive eustress. 
• No corporate BS.
• No politics. Bar TI’s need to be addressed by his full Monevator job title: Grand Supreme Presidente of Awesomeness for Life. 

The point is I didn’t FIRE so I could nod off to sleep in front of daytime TV. And I’ve still got plenty of playtime left to do other things. 

But the transformation in how work feels post-FIRE is akin to escaping an abusive relationship, and realising that it doesn’t have to be that way. 

I want you back

Others have gained a fresh perspective on how employment should be designed, as the ONS uncovered when it quizzed some 50-to-70 year olds who bailed during the pandemic. 

Fully 58% of the 50 to 59-year-olds would consider going back to work! And 31% of the 60 to 70-year-olds are open to returning. 

Here are the carrots a prospective employer would need to dangle:

Source: ONS. ‘Reasons for workers aged over 50 years leaving employment since the start of the coronavirus pandemic.’

The top three temptations all offer up more flexibility. Not a surprise.

These wise old retirees probably aren’t going to be selling their soul to Goldman Sachs anytime soon. They want a job that works around their life, not one that rules it. 

Only 9% of respondents said they wanted to return full-time. 

Here’s why they might make a comeback:

Source: ONS. ‘Reasons for workers aged over 50 years leaving employment since the start of the coronavirus pandemic.’

Money is always a temptation, but it’s interesting to see how many would go back for social reasons (54%) or to improve mental health (35%). 

On the income side, the benefit of bringing in a few quid now while I’m vulnerable to sequence of returns risk is overwhelming versus the nightmare scenario of struggling to make ends meet in my eighties. 

Still we needn’t speculate about the incentives retirees need to work because one country is already way ahead of us.

The Land of the Declining Birth Rate

The fuse on Japan’s demographic timebomb has already burned down to the detonator. It has responded with reforms to coax its older citizens back to work.

Apparently with some success:

The dystopian version of this would be chain gangs of octogenarians cleaning toilets for minimum wage, 60 hours a week. 

I can imagine that happening in the US. But the stories I’ve read about Japan’s ‘Silver Jinzai’1 are generally more heartwarming. 

There’s the 70-something who teaches English to primary school children. He keeps the kids entertained with his silly voices and by acting out the roles in the English-language stories he reads to them. 

Or the ex-finance worker who helps out at a support group for people with disabilities. Kasa sounds like she has life sussed:

“In order for me to have a meaningful life, I decided to start a job where I would be able to help other people. I don’t have any special skills, but I always work with a compassionate heart.”

The Silver Jinzai aren’t working for big bucks. But it doesn’t sound like it’s about the money anyway.

They’re making a difference. To themselves and others. 

Take it steady,

The Accumulator

1. Silver Human Resources. [↩]

What caught my eye this week.

One of the most popular posts we’ve ever run on Monevator was my co-blogger The Accumulator’s origin story.

In it we learned how the high priest of passive investing pursued financial freedom to retire early from the daily slog of slaving for a big corporation, for a life of slogging away writing for Monevator and me instead.

(Don’t worry, it’s summer and he’ll be too busy chasing cows to read this.)

Plenty of you shared your own stories in the comments to that article. Which highlighted both the multitude of ways it’s possible to achieve FIRE1 and also the breadth of our community.

So I got to thinking perhaps it could be a regular feature?

This is your life

I’d like to try running a case study focused on a Monevator reader every month or two, revealing the secrets of your financial success.

Don’t worry, you won’t need to wax as lyrical as @TA to be featured.

Rather we’ll follow an interview format. I’ll email you a set of questions, you’ll reply in as much depth as you can, and then I’ll run the edited copy past you before publication.

I imagine all the case studies will be anonymous – except for the Internet handles you use in our comments, of course – and I’m hoping people will feel comfortable sharing quite a bit of detail.

I know we’re (mostly) British and that talking about money still isn’t really the done thing.

But by opening up about the ways and challenges of getting wealthy, we can inspire others to do the same.

Also, it doesn’t matter how you did it.

Index funds, active trading, hardcore frugalism, crypto, fat company pensions, a win on the lottery or an inheritance from a long-lost uncle – all routes are relevant and will add to our archives.

How to get involved

I’m really hoping some of the Monevator regulars will step forward to get the series rolling, but consider this call for entrants open to all.

So if you’d like to get involved, either leave a comment below (with a valid address in the email field so I can contact you) or else let me know via the Contact form (top-right).

Or if you’re reading this after subscribing to get Monevator as an email, you can just hit Reply.

I can’t wait to hear how many of you made it – and your tips for others who’d like to do the same.

Have a great weekend!

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1. Financial Independence Retire Early. [↩]