I know many people who have way more money than they need; I’ve never met someone with more time than they need.
Abundance is usually seen as a positive. That certainly applies for an ‘abundance mindset’ rather than a ‘scarcity mindset’. But does it translate to money?
The more we have of anything, the less its value.
- For some people, ten dollars is not material
- For some people, a thousand dollars is not material
- And for some, every single dollar is material
The value we ascribe to anything is relative to how much of it we have.
Scarcity creates value.
Hermes could make plenty more Birkin bags. Ditto Lamborghini and cars. They choose to limit supply to make them more popular and increase demand.
With way more money than you need, is yet another Birkin or Lambo going to fulfil you?
The more you have, the less you have.
Now consider the anomaly that is death.
It is the most certain thing in the world – in statistical terms we can say the lifetime risk of death is 100%. That’s fancy for “everyone dies”.
Yet discussing estate and succession plans in families is one of the hardest things, especially for wealth originators (G1).
Why? Because
- Our strongest emotion is fear
- Our greatest fear is of the unknown
- The greatest unknown is … death
Death means life has limits.
Death brings a scarcity to life.
And, as Brigitte (personifying death in Collateral Beauty) said …
“Death gives time all of its value”
When money is abundant, its value diminishes.
Time is scarce for everyone, which increases its value.
What would you pay for a 1963 Ferrari 250 GTO?
What would you pay for an extra five years of life?
No matter how much money we have or don’t have, our most precious thing in the world is our time.
I learned this the hard way.
It made me far more conscious about how I ‘spend’ my time.
That doesn’t mean I’ve given up Candy Crush; it means I enjoy it and play when I want to.
We can take two things from this:
- Understanding what is truly abundant, and what abundance leads to diminishing values. Non-financial family capital – human, intellectual, social & spiritual – are forms of capital whose value has no negative side effects.
- Looking at scarcity to find true value & wealth – time and experiences.
Conversation Starters:
What is a dollar worth to you?
What is your most precious ‘thing’? Why?
What is your most memorable experience? Why?
What would you do with an extra hour each day?
Further Reading:
U.S. Billionaires Are Living Longer, Making Heirs Wait
Unlocking true wealth
How Generation Pledge Helps Affluent Heirs Chart Their Giving Course
Baby Boomers Embrace ‘Die With Zero,’ Passing On Less Money To Their Kids
