Better off broke: Why some choose poverty over wealth
A shocking truth -- Not everyone craves the trappings of the American Dream
By Erica Sandberg
A shocking truth: Not every
American craves a high-powered job, big house, luxurious vacations and
stockpiled cash. In fact, some not only eschew such things, they've consciously
chosen to both earn and spend far below their capabilities. For them, living on
the economic edge is neither a brutal nor shameful experience. It's a
preference.
Here are just a few who have willingly -- and
happily -- ignored the dangling financial carrot. Unencumbered by debt and
excess, they now enjoy freedom and contentment. Sound appealing? A flat net
worth can be positive as long as it's done for the right reasons.
Exchanging hubris for
humility
Movies such as "Wall Street" ("Greed is good!" pronounced the infamous Michael Douglas character Gordon Gekko) and "Glengarry Glen Ross" ("I made $970,000 last year. How much you make? You see pal, that's who I am, and you're nothing," said Blake, played by Alec Baldwin) defined the late 20th century.
Movies such as "Wall Street" ("Greed is good!" pronounced the infamous Michael Douglas character Gordon Gekko) and "Glengarry Glen Ross" ("I made $970,000 last year. How much you make? You see pal, that's who I am, and you're nothing," said Blake, played by Alec Baldwin) defined the late 20th century.
With the booming stock market and bloated
property values, such platitudes and attitudes were so common that a new term --
affluenza -- was coined. According to the book, "Affluenza: The All-Consuming
Epidemic," by John de Graaf, published in 2001, the U.S. had succumbed to the
"socially transmitted condition of overload, debt, anxiety and waste resulting
from the dogged pursuit of more."
Since then, however, public sentiment has
shifted radically. The housing bubble burst in 2007, launching a recession whose
side effects continue to linger. Millions of Americans lost their homes and
jobs, but others just gave them up.
As a result, many turned to a simpler
lifestyle -- either out of necessity or borne out frustration. Today, the
simple-living movement extols the virtues of being satisfied with the bare
minimum. According to The Simplicity Collective, a grassroots network
embracing downsizing, "Never before have so many people had the option of
casting off the chains of consumer culture, stepping out of the rat race and
living (and spending) in opposition to the existing order of things." Meanwhile,
the freegans (a subculture espousing "waste reclamation" where
foraging goods is a common practice) are bucking the system to such a degree
that they intentionally eat from dumpsters. Money? Who needs it?
J.T. Mathis
|
Not all who adopt a more basic lifestyle dine
on trash, however. Some, including Enterprise, Ala., resident J.T. Mathis, just
felt there was a better way to live that what he was taught. "I was part of the
herd to live the American Dream," says Mathis, who holds an MBA and spent 10
years in the business world. "When terminated from my recent job two years ago,
I realized that all that this dream is a chase. A chase for more and more and
more."
Mathis looked to the lessons of the ancient
Greek philosopher Epictetus, whose teachings also inspired Thomas Jefferson. As
Epictetus wrote in the first century, "Wealth consists not in having great
possessions, but in having few wants." Which is pretty much the polar opposite
of Gekko's ode to avarice.
"I wanted humility, to become more humble,"
says Mathis. He sold most of his belongings, turned over his apartment key,
became an author and "went nomadic." With nothing but a backpack and his dog,
Mathis walked across the Oklahoma plains, which was experiencing drought and
record high temperatures. "There was nothing in sight," he says. "I knew there
was a likelihood that I could die. If I was offered a million dollars or a glass
of water, I would have taken the water. That was an important moment."
In Occupy Wall Street, a movement retaliating
against corporate abuse, Mathis found affinity in the bartering system and using
only what's necessary. "I found people who felt like me, who rejected the idea
that financial wealth is everything."
I
opted to just barely pay my bills by creating things by hand one at a time
rather than pursuing a vastly more lucrative endeavor.
|
--Joel Selmeier Peace-poles.com |
Trading material goods for the greater
good
Joel Selmeier, from Cincinnati, was raised in an affluent household and he, too, turned his back on the established definition of success. His aim was to serve, create and spread a powerful message.
Joel Selmeier, from Cincinnati, was raised in an affluent household and he, too, turned his back on the established definition of success. His aim was to serve, create and spread a powerful message.
Selmeier suffered from chronic, serious
depression. Though he majored in political science and tried a career with the
United Nations, by the time he reached his late 40s, he felt crushed and needed
to start over. "By luck I stumbled into a need for an unused skill I happened
to have," says Selmeier, who is now a sculptor of peace poles -- monuments inscribed with a plea for world
peace. He makes them individually and slowly. Not to get rich, but to break
even.
"I opted to just barely pay my bills by
creating things by hand one at a time rather than pursuing a vastly more
lucrative endeavor," says Selmeier. Today, his life is simple. He has a
15-year-old car that runs fine, and though he doesn't make or have much, neither
does he owe. Instead, he gains from the experience of dealing with people as
they come, creating things that make them happier.
Joel Selmeier
|
Doing work that benefits others, even if it
pays poorly (or not at all) is inherently gratifying. Selmeier recounts a
physicist friend who complained about not doing work that benefited anyone
directly. "He never had the experience of doing something for an individual that
made things better for that individual, like making a physical thing for them,"
says Selmeier. "When I began doing what I am doing, he said I was lucky, even
though I was earning a fraction of what he earned."
Why money doesn't (always) buy
happiness
It is important to distinguish the difference between crushing, inescapable poverty and electing to live sparingly. The former often leads to a sense of desperation, but the latter can result in a sense of liberation and joy.
It is important to distinguish the difference between crushing, inescapable poverty and electing to live sparingly. The former often leads to a sense of desperation, but the latter can result in a sense of liberation and joy.
Robert Biswas-Diener is a psychologist, author
and instructor at Portland State University, whose research focuses on income
and happiness. Not surprisingly, he's found that money can enhance a sense of
well-being as it can lead to comfort and convenience, but being materialistic
creates the opposite feeling. In essence, says Biswas-Diener, "money in itself
is not toxic to happiness but desiring the things that it buys is."
Additionally, says Biswas-Diener, economic
abundance can negatively complicate a life. "Like lottery winners. But it's not
just them. I know some very wealthy, famous people who are profoundly
miserable." Wealth can be either perceived as a burden (what do I do with all
this money?) or produce feelings of guilt (I don't deserve this money).
I
see a movement toward voluntary poverty. That shift is already taking place in
the private sector as homebuyers re-entering the market are opting for smaller,
efficient homes.
|
-- Bruce Specter Advisory mortgage planner |
"Money
needs to be managed and that's a stressor," says Biswas-Diener, and that can
make a life with little cash and few responsibilities alluring.
Biswas-Diener recounts a story about a
colleague living in Thailand. "He and his friends used to see a guy they
nicknamed 'hammock guy,' and for a long time they made fun of him because he was
always there. But then they all realized that they were working themselves like
dogs so they could take vacations and lay in a hammock. This guy was doing it,
but getting rid of the middle man!"
And those McMansions that surged in popularity
when the housing market made overnight millionaires? Many owners found them to
be more of a pain than a pleasure. "I see a movement toward voluntary poverty,"
says Bruce Specter, an advisory mortgage planner from Reno, Nev. "That shift is
already taking place in the private sector as homebuyers re-entering the market
are opting for smaller, efficient homes."
Specter and his wife participate in the trend.
"We have paid off all our consumer debt and are moving into a smaller home with
a mortgage one-third that of our current house."
Finding balance
between
Ultimately, while funds in the bank and cards in your wallet can reduce anxiety, they can also elevate it. You've got to pay attention to how your money is spent and invested and that requires at least a rudimentary amount of acumen. Running a household means nonstop bills. As for that cell phone and computer, keeping up with the latest technology also becomes increasingly expensive and for some, more of a headache.
Ultimately, while funds in the bank and cards in your wallet can reduce anxiety, they can also elevate it. You've got to pay attention to how your money is spent and invested and that requires at least a rudimentary amount of acumen. Running a household means nonstop bills. As for that cell phone and computer, keeping up with the latest technology also becomes increasingly expensive and for some, more of a headache.
Is the solution all out rejection? For some,
yes. "To not want or fret over a bill or upgrade, well, this is one less
stress," says Mathis. "Instead of the massive wardrobe and watch for each day, I
now don't wear a watch and my wardrobe consists of three outfits. I no longer
have credit cards."
Biswas-Diener, too, believes it's important to
also review your goal to exist on a substance level with a professional who can
help you plan for your later years. "Sit with a financial planner. Let them help
you establish the amount you need to live the life you want. That's healthy. You
don't have to pursue more and more to no end. Paint your own
aspirations."
See
related: Over your head in debt? 5 extreme budgeting
ideas, Stretching a food budget to the extreme
Published: September 23, 2013
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