There’s no doubt about it—money is impactful.
It can change your life in a variety of ways, especially when you come into it suddenly or if you start out with “nothing” and become wealthy over time.
While there are many positives to the way money can shape your life, there are also some red flags to be aware of. In particular, if you’re not careful, money may start to change your identity or sense of self.
Having a lot of money can influence the way you think about yourself. It can change your sense of morality, and it can even have an impact on your relationships with other people.
With that in mind, let’s take a closer look at this hidden cost of wealth and how money can skew your vision of who you really are.
The Struggle of Being Independent
If you were born into a wealthy family and you’ve never had to worry about your finances before, that might seem like a good thing. In a sense, you could say that you were born independent because you’ll always have what you need.
But there are some drawbacks that come with being affluent your whole life. Many children who grow up in exceedingly wealthy families have a harder time learning responsibility and becoming independent adults.
Money tends to create a lot of pressure. Indulgent behavior isn’t uncommon, which can lead to problematic issues like addiction down the road. There are many struggles wealthy families face, and they have more to do with internal problems rather than financial ones.
If you have money from the moment you’re born, you may not be able to handle life’s “everyday tasks” as well as someone who has had to work for their successes.
The Trauma of Coming Into Money
There are many reasons people experience sudden wealth. Perhaps they came into a financial windfall when their company went public. Or they inherited money after the death of a loved one. Some people may have even won a contest or the lottery.
It doesn’t matter how you come into money quickly, it matters how you handle it.
Having a lot of money all of a sudden will force you to change some things in your life. For example, you’ll have to think more about money than you may ever have before. How are you going to save it? How are you going to protect it? Money can quickly consume your thoughts when you have a lot of it.
Others may also start to look at you differently. Some might automatically assume you think you’re “better” than they are because you're affluent now. Some may also treat you better in the hopes of getting a piece of your wealth. People aren’t inherently “bad” when it comes to money, but there are stereotypes in place about wealth for a reason.
Because money creates a lot of pressure on a person’s life, it can also create a lot of stress. That’s one factor among several that can contribute to higher rates of addiction in the wealthy. Even wealth itself can become addicting—if you have a lot of money, you might start to crave more.
When money becomes your focal point, you also may be more inclined to act immorally. Studies have shown that people with an extreme amount of money are more likely to do unethical things. Wealth tends to endow a sense of power. You might feel as though you’re “untouchable,” so you try to get away with more than you normally would.
Keeping Yourself Grounded
Money will significantly impact you emotionally if you become extremely wealthy. There’s no getting around that. But, as noted above, it’s how you handle this impact that can make a difference in your mental and emotional well-being.
If you’re struggling with the hidden cost of wealth and you’re looking for some direction, please feel free to contact me.