Why Envy Does Not Pay Off
I explain why envy leads to poverty. There are 2 psychological and 1 economical reason why envy does not pay off. If you aren't well off, you should take a closer look at your attitude towards wealthy people as it may be the reason for your weak financial performance.
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Follow me on twitter: http://twitter.com/BillionairePal
Follow me on steemit: https://steemit.com/@billionairepal
And read the blog where I test the limits of human capabilities: http://nolimits.co
Buy the book "Ready, Set, Go!" that I have co-authored with Brian Tracy:
E-Book: https://www.amazon.com/Ready-Set-Special-Entrepreneurs-Professionals-ebook/dp/B078WZXJDW/
Hardcover: https://www.amazon.com/Ready-Set-Go-Nick-Nanton/dp/0999171402/
Get free chapter of my upcoming book about billionaire thinking: http://TheBillionDollarSecret.com
VIDEO TRANSCRIPTION
Hi guys! Today from Berlin, Germany. Today I will tell you why envy doesn't pay off.
I will give you 2 psychologic and 1 economic reason why envy doesn't pay off.
[Music]
Why envy doesn't pay off? Before we start don't forget to subscribe and hit the bell button in order not to miss my other videos.
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Now quickly starting with our topic. 2 psychological reasons.
The first reason is: If you envy wealthy, rich people... If you say they are bad people, they are immoral, they are corrupt
They got their wealth in unethical reasons, thanks to unethical actions... whatever.
You subconciously block yourself on the way to wealth because you don't want to be a bad person.
If you consider money to be a bad thing and people having money to be bad people, you will never become wealthy and you will never have money
Because you don't want to be a bad person. So, this is one reason and connected with that you also want to be consistent.
If you have been always talking bad about wealthy people to your friends, to other people around you,
You of course want to be consitent with your vision of your world; with your image also how you were perceived by your surrounding
And you don't want suddenly start making money, earning big money, getting rich because they will tell you
"You see, you were saying that and now you're doing something different. So, you're a bad person, you're inconsistent, you're not sincere in what you do"
You're not frank to us. You say one thing and you do another thing. So, you want to keep that consistency.
This is kind of inertia that also prevents you from becoming rich. This was the first psychological reason.
The other psychologial reason is: If you want to take away from rich people... take away money or you wish for somebody / the state
To take away their wealth and to distribute to others, you're conciously trying to establish uniformity / equality... whatever it means
Let's say financial equality by pulling those financial high performers down. Meaning you want to pull them down to your level.
And do you think it will help get you richer? No! Of course not! What will help you get richer is to try to level up to their level
To reach up to their level, to try to get to their performance in financial terms. I'm not valuing here if this is bad or good
Or if this is what you should do in life or not... We're only talking about how envy impacts your financial performance / results.
So, if you get rid of your envy and you change your mindset and say "I don't want them to became less wealthy. I want me to become more wealthy.
I don't want them to level down to my level. I want me to level up to their level.
Then, of course, you will perform much better in financial terms. But these are the psychological reasons that you may know about.
Recently I found an economic reason why envy doesn't pay off and this is extremely interesting. It surprised even me and I want to share my reasoning with you
And hear your opinion about that. So, in order to understand the economic reasons why envy doesn't pay off, you need to understand what opportunity cost is
What is an opportunity cost? Opportunity cost comes from rare goods. Everything in economy is about rare goods.
It means you have limited means. Also in financial terms, in terms of your time, in terms of your resources. Limited means, limited resources.
And you always have to decide how you invest these resources or on what you spend these resources.
Let's say you have 1 dollar in your pocket and you go to the local market and there are apples for 1 dollar each and there are plums for 1 dollar each
So you have to decide. You get an apple or you get a plum. If you get an apple, you opportunity cost is the plum you haven't gotten.
If you get a plum, the opportunity cost is the apple you haven't gotten. I've been talking about opportunity cost in one of my previous videos.
I will put a link here below this video or maybe here up. And the same is also with your money, with your time.
If you spend your time on one thing, you can't do the other thing and the other thing that you can't do is your opportunity cost.
Actually the next thing you would do that you don't do because you do the thing that you did - this is your opportunity cost.
And how does it apply to envy? What does it mean in this context? Let's say we have a lawyer in an equalized country.
It's a communist / socialist country, everybody is the same wage and let's say the lawyer earns 10 dollars an hour. So close to minimum wage.
An average wage - 10 dollars an hour. He has a house and there is a lawn on the property. His wife requires him to cut the lawn once a week.
And he needs, let's say, one hour to cut the lawn. It means his opportunity cost is probably 10 dollars that he would have if he worked at that time instead
If he worked, he would have 10 dollars more. If he cuts the lawn, he doesn't have these 10 dollars.
So, now let's say, he would like to emply somebody. He is the lawyer, he doesn't like to work in the garden... whatever. He would like to employ somebody.
So, what sense does it make for him to employ somebody? If he works during that hour, he earns 10$ so he can employ somebody up to 10$.
He would probably pay between 5-10$ for somebody to cut this loan for him and he would have an adventage of several dollars.
Instead of cutting it himself. So, that's why he would employ somebody and take adventage of that.
And now, let's say, we are in a capitalist society, where we have bigger diversification. So, this lawyer earns let's say 100$ an hour.
And what happens if he earns $100 an hour? Now his opportunity cost when he cuts the lawn is $100.
He can employ somebody. How much is he willing to pay for somebody to cut his lawn? Suddenly more than $10. He can pay $20 and it'd be a very good deal
He can pay $50. It's still a very good deal for him. But he would be able to even pay up to $100.
So, you see... If he earns more, other people that he employs, the services that he would be willing to pay for, also the products he'd be able to pay for
They have a higher price. So, it's not only that he earns more but he enables others to earn more because he earns so much.
Now, let's say you're envious about lawyer earning $100. an hour. You want him to earn as anybody $10 an hour. What does it mean?
You want him to earn less so that he can't employ other people. And if he employs other people, they earn only 5-10 bucks an hour.
So, you are wishing for others to earn less money. This is because you're disabling others from earning that much money or earning more money.
So, that's why I think in societies that are characterized by great envy, people on average earn less than in capitalist societies, like in America.
In America, if you get rid of your envy and you want this lawyer to earn $500, this enables him to pay more for products, services
And the people who sell them these products and services are able to earn more as well. Meaning if you're envious, it economically doesn't make sense.
Because it makes the whole society in the sum earn less money and it impacts also your earning ability
Because there are less people that you can sell to or the people you can sell to are less wealthy so you don't earn as much money.
And if you get rid of your envy, you may wish this lawyer to earn even $100, so you can sell him higher price products, more profitable products
Better services or higher profit services, higher sales tickets. So, it all works together. And I'm curious about your perspective, about your arguments
About your opinion and experiences in that topic. Please, leave a comment below and I invite you to share this video with your loved ones and friends.
One day they will thank you for that. If you liked this video, give me a thumb up. I wish you a fantastic day today.
Let's do something extraordinary today!
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