Cry.
That’s right. If — when — you don’t win Friday’s $900 million Mega Millions jackpot, let it all out. It’s a healthy emotion and an alternative to watching a sad movie or jogging in the rain. More than half of people say they’ve cried at some point in their life because they didn’t have enough money, according to a recent report, “The Secret Lives of Americans,” by market researcher NonFiction and co-authored by Gunny Scarfo and Ben Zeidler. Psychologists say crying is good for your mental health. Money worries are stressful. Failing yoga or meditation, tears can set you free.
Isn’t that why people spend money on lottery tickets in the first place? At some level, they feel dissatisfied with what they have and/or would like more. Numerous studies suggest that people who play the lottery are from low-income neighborhoods and should probably not be spending their money on scratch cards or other lottery tickets, given the slim chances of success. It’s gambling, after all. Americans in the lowest fifth socioeconomic status group had the highest rate of lottery gambling (61%), research in the 2011 Journal of Gambling Studies research found.
Why do people spend money on lottery tickets in the first place? At some level, they feel dissatisfied with what they have and/or would like more.
Obviously, you don’t need $900 million to be happy, but millions of Americans are stressed out living paycheck to paycheck. Psychologists from Purdue University and the University of Virginia recently analyzed World Gallup Poll data from 1.7 million people in 164 countries, and cross-referenced their earnings and life satisfaction. Although the cost and standard of living varies by country, they came up with a bold conclusion: The ideal income for individuals is $95,000 a year for life satisfaction and $60,000 to $75,000 a year for emotional well-being.
“Staggering numbers of Americans are leading double lives when it comes to money,” Scarfo and Zeidler write. “To their friends and neighbors their lives look normal, even prosperous. But privately, behind closed doors, Americans are badly in need of help with money and the emotions that surround it.” Some 37% say they’ve gone to sleep hungry and 12% have stolen something.” Their findings are based on a survey of 2,238 people with a 2% margin of error. They use a technique called “known sampling” in which identity of respondents is verified for accuracy.
Let go of the fake life you live on Instagram
So what do you do next when dreams of a McMansion, a life filled with endless vacations and free from the pressures of work disappears at 11 p.m. ET Friday? Firstly, thank your lucky stars you don’t live in one. The median size of the single-family home increased every year until it peaked at 2,467 square feet in 2015. People realized they didn’t need all that space. Secondly, differentiate between your public and private self. People are increasingly influenced by what they see online — from living vicariously through their children to getting plastic surgery.
Beware of social media. It may only reflect what you think of yourself. “Social media has been described as more addictive than cigarettes and alcohol,” according to Shirley Cramer, chief executive of the Royal Society for Public Health in the U.K. Some 28% of millennials say they intentionally make themselves look wealthier in their social-media posts, according to NonFiction. Yet only around half of Americans say they have meaningful, daily face-to-face social interactions, including quality time with friends and family, a separate report by Cigna CI, -0.36% found.
Also see: Nearly half of Americans report feeling alone
Be inspired by music and art to save rather than spend
As credit-card debt hits $1 trillion, this is a good time to think about saving instead of spending. NonFiction notes that almost twice as many people have credit cards (76%) than retirement accounts (47%). “Even rappers are becoming more transparent and thoughtful in how they address topics of money,” Scarfo and Zeidler write. They cite Lil’ Dicky’s music video, “$ave Dat Money.” They describe the video, which has over 104 million views on YouTube GOOG, -0.50% as one of the most “visceral recognitions of the tension between dream and reality.”
Gunny Scarfo and Ben Zeidler describe the rap video, ‘$ave Dat Money,’ as one of the most visceral recognitions of the tension between dream and reality.
The rapper knocks on the doors of mansions to ask the owners if he can use their palatial surroundings to film his music video for free. Many refuse, but one woman actually says yes. He sings: “Rap game got it all wrong. We ain’t ‘bout to go and spend money just to flex on her. We ain’t really got it like ya’ll.” He raps about 401(k)s, sharing Netflix NFLX, +5.28% logins and keeping your eyes peeled for restaurants that overcharge you: “Don’t double charge for me for that. Don’t do it to yourself ‘cause I might just ask what the ice cube’s worth.” Not the usual stuff of rappers.
Don’t miss: This is why millennials can’t have nice things (or save any money)
Don’t have any shame in your financial game
NonFiction also reveals some interesting details about what people like to share with their friends and what they prefer to keep quiet. In the former camp: Where they went on their last vacation (61%), photos from their last vacation (51%), their most recent big purchase (40%) and how much their rent is or their home costs (30%). And what do people like to keep private? Their salary and bonus at work (14%), how much debt they have (13%), how much savings they have (9%), their household net worth (9%), how much they have invested for retirement (6%).
What does that tell you? That people are coy about their actual finances, but are perhaps more comfortable broadcasting a more superficial version of their lives. Maybe keeping your eye on the tangible goals — like being paid a fair wage — is more useful than being bewitched and bewildered by the intangible promise of millions of dollars. A recent survey by Harvard Business School and UCLA concluded that 80% of people would actually pay money to keep their salary a secret, but workplace experts say transparency can lead to people advocating for higher wages.
Recommended: ‘The past 7 days have been the worst of my financial life’
Trust a friend or financial adviser with your story
While the savings rate has fallen to a 12-year low, more people are also hoarding money in their checking accounts. Consumers maintained a historically high average checking account balance for year-end June 30, 2018 at $3,673 for all financial institutions, Moebs Services, an economic-research firm in Lake Bluff, Ill. said last week. Moebs analyzed more than 12,000 depository call reports. That suggests people are not spending money they would normally use for day-to-day expenses and/or they’re unsure what to do with the money they do have.
One man’s lottery is another man’s retirement plan. A decade after Lehman Brothers collapse and the financial crisis that led to the Great Recession, millions of people remain deeply distrustful of Wall Street and are shy about investing. Most people don’t have a financial adviser, studies show, and that dearth of advice could be problematic. “While there are primary care physicians for the average American, there is no Personal CFO,” Scarfo and Zeidler say. “In some ways this is no surprise, as the financial services industry was not built from a customer-centric, inside-out perspective.”
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