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.

Congrats on Not Getting the Job

One of my clients recently applied for a new job. It was an incredible job: higher status, more responsibilities, higher salary, a bigger bonus, better benefits......the whole nine yards. He didn't get it. He was in the final three, but lost out to someone else.

On the heels of this news, I sent him a text congratulating him on not getting the job. I'm so glad he didn't get it. It would have been a terrible job for him. Let me take a step back. He loves his current job. He wakes up every day excited for what he's about to do, loves his co-workers, has the flexibility for his family to live the life they live, believes in the mission, and makes a good living doing it. He's living his absolute best life, and his family has a great rhythm in how their life is structured.

So why did he apply for this new job, then? Frankly, he applied because that's what we're supposed to do. We're supposed to move up, make more money, garner more status, and manufacture a higher standard of living. Deep down, he knew he was already in the right place, but this was such a good opportunity!!!

After he received my unexpected congratulatory text, he immediately called me to process it. I explained to him how this new job, while paying better, would have negatively impacted many areas of his life. Less balance, more travel, a shift to work he doesn't enjoy, the loss of his work community, and a lot less flexibility to do the things his family enjoys doing.

His not receiving this job may be one of the best things that ever happened to him. He has a beautiful life, and money almost came before meaning. In hindsight, he's glad it didn't. The extra money would have been nice, but at what price?

There's absolutely nothing wrong with more money, but I believe you deserve better. So much better! I think you deserve to wake up every day excited for what you're about to do. Not because it's fun (it's often not), but because it matters. If it comes at the expense of a few fewer dollars, so be it. You deserve better than to put a price tag on your life. Your life is worth so much more than an annual salary or a status tied to your name.

Have a fantastic day!