All Things Money
Jim Dahle is an American medical practitioner and blogger who writes under the mantle The White Coat Investor. The headline on his latest post — “Ten Ways to Feel Rich” — almost put me off, as did his insistence that only those with half a million dollars should read further (unless you’re rich, you shouldn’t worry about feeling rich — eek).
But I persevered and found some useful nuggets.
For those who don’t like the word “rich” because it makes them think “filthy rich”, Dahle suggested substituting “wealthy”, “comfortable” or “financially independent”.
His was not a blog about how to become rich, but rather how to feel rich, whatever your net worth. Like Dahle, I’ve met people who, based on their net worth and/or income, should feel rich, but somehow didn’t.
His tips are commonsense but, like a lot of sensible advice, are often forgotten or overlooked.
You can’t argue with his first tip — to insure against financial catastrophe. Insurance can stop your wealth being ripped away from you; Dahle recommends disability insurance, term life insurance, professional and personal liability insurance, and of course property insurance for home and buildings.
This may be overkill but we Kiwis are not great with insurance, with Treasury estimating that underinsurance across the country amounts to some $184 billion.
According to Treasury research, up to 85 per cent of New Zealand homes are under-insured, by an average of 28 per cent.
Dahle is spot on when he suggests we recognise the power of anxiety and take the time to understand our financial position, in order to not feel anxious about it.
As a physician, he notes that onethird of his patients suffer pain and discomfort, due not to a medical condition, but from anxiety.
Anxiety can undermine the sense of wealth; the downside of being rich is having something to lose. But the solution for anxiety is not seeking to make more money, it’s dealing with your mindset.
Once you know exactly what your net assets are and your required spending level, versus your desired and “enough” spending levels, you will remove a lot of stress and worry.
Dahle also advises hanging out with a “different set of Jones” and travelling internationally.
It’s straightforward, really; if you