Standard of Living vs. Quality of Life
One of my friends recently decided to downgrade his living situation. It was a difficult and humbling decision, but the right one for his current stage of life. In our discussion, he lamented how it's going to be hard having a lower standard of living. Reading between the lines, I could tell what he was really saying was that his life would inevitably become worse as a result of this decision. Embedded in his perspective is the belief that a higher standard of living increases happiness and a lower standard of living decreases happiness. While culture generally believes this to be true, I couldn't disagree more.
I think we're talking about two separate topics here: standard of living and quality of life. They are not the same!
Standard of living: "the degree of wealth and material comfort available to a person or community."
Quality of life: "the standard of health, comfort, and happiness experienced by an individual or group."
Sure, a higher standard of living can increase one's quality of life. If it's 90 degrees outside, having AC (vs. not having AC) leads to both a higher standard of living and quality of life. This is a true statement. Let's add a wrinkle. Let's say the introduction of AC requires the individual to take on a large loan with $400 monthly payments. Yes, the AC still cools the air and increases the standard of living, but did it improve the quality of life? This is where the rubber meets the road. There's a cost to every benefit. In this hypothetical, the person needs to give up something to increase their standard of living. Maybe they will give up their dining out, or their ability to buy clothes, or a trip they've been saving for, or they need to trade more of their time for additional income.
This tension point is where my friend is on his journey. The cost of his high standard of living is impairing his quality of life. He's had to make dramatic sacrifices in other areas of his life and endure undue stress just to maintain his higher standard of living, resulting in a lower quality of life.
Conversely, my current life is a reflection of the opposite. Today, I have one of the lowest standards of living in my 20-year adult life, but the highest quality of life in my 20-year journey. Our financial life is simple. We live in a simple house (which we rent), we drive simple cars, and we have simple monthly wants. This structure opens up the doors for us to travel as we please, give generously, say "yes" to weird things, and engage in work that matters. Standard of living and quality of life are correlated, but often inversely, ironically.
As you think about your situation, take an inventory of the various aspects of your life that enhance your standard of living, and ask yourself if they increase your quality of life. You might be surprised by the answers.