Material goods

  Today, a little about goods. I like this article very much, so I have no doubt that you will too. 

HOW MUCH DO STATUS GOODS MEAN TO YOU?

What is the link between income and happiness? Are money and wealth the key to happiness? Find out more on our blog!

What is the link between income and happiness?

On the one hand, we say that money makes the world go round, but on the other hand, we say that it is the source of all evil. In reality, money can be whatever we want it to be, depending on how we use and abuse it. Money allows us to organise and trade goods and services on a global scale. If money disappeared tomorrow, most societies on the planet would collapse. Without pennies in our pockets and without bank accounts, we would be in real danger of being left without food and without a roof over our heads. And yet money has no value in itself; it is always a means or a tool to satisfy our needs and desires and to pursue happiness.

Enrichment is a very general goal. Strictly speaking, wealth is accumulated wealth in the form of savings, investments and real estate.

It is difficult to measure. People with high salaries have accumulated more wealth. But there can be differences; many pensioners have low incomes but a lot of wealth, while some younger people have good salaries and no wealth. When weighing the evidence, bear in mind that wealth is generally a better indicator of who is rich than income, because it better reflects true purchasing power.

RICHER AND HAPPIER

What is the link between income and happiness? Well, if we take life satisfaction as our measure of happiness, then the association fades as income rises, but as most studies show, it never completely disappears. The link between income and life satisfaction is never that impressive, especially when compared with life domains such as positive social relationships and good physical and mental well-being.

Getting richer does not necessarily lead to greater happiness, partly because the people we compare ourselves with are moving up the ladder. While admiring those richer than ourselves may serve as a motivator and give us hope, it usually only irritates and discourages us, and we are even less satisfied with what we have, especially if we come from an envious point of view. The reasons why people want to get rich are manifold.

One of the most common is that they want to spend money in such a way that others will notice and recognise their wealth. 

In the social concept of getting rich, the need for recognition has always been the main reason why we fall into the trap. Man has always wanted to impress others. With new wealth came the need to show off one's newly acquired position in society. When we spend money in a way that others can see, it is conspicuous or status consumption. Spending money on goods and services that show others our social position.

There are three key elements to spending to achieve a higher status in society.

First, the stock of selected goods must be limited. Second, consumption must be visible. The third element of spending for a higher position in society is a weak link between price and quality. If the price rises and the quality remains unchanged, but people still buy the product, they are buying it purely for the status that the product brings. It is a fantastic marketing ploy that almost everyone who aspires to a higher social position falls for.

Things that people are interested in and that people like to buy or seek information about sometimes show how rich or successful those people are compared to others. These are also called status goods. A person who buys such goods is able to cultivate a particular desire to show off his or her position in society.

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