Tuesday, August 26, 2014

Affluence Guilt and Shame


What is “affluence guilt?” It is when you feel insecure, frustrated, or shameful that you have more financial resources than another person or group of people. At a global level, we can sometimes feel this as U.S. citizens. Even if we personally don't think we have that much money, when we are told that we are the richest nation in the world and look at what a less affluent country has in comparison, it can induce guilt and shame.

Researcher and shame expert Brenee Brown defines guilt as coming from what we have done and shame as coming from who we are. 

At the individual level, affluence guilt and shame comes into play when recognizing that you have more money than your family, friends and community members. This realization often leads to feelings of insecurity, frustration or embarrassment. What if you have truly pursued your passions and have ended up in a position where you are able to earn a great living and have more than others --is that something to feel guilty or shameful about? No. There are however five groups of people who are likely to experience affluence guilt and shame.

1. First-generation professional athletes
2. People who are making substantially more money than their family (typically those with an advanced college degree)
3. Successful entrepreneurs who end up making more than they ever imagined
4. People marrying into a high-income/net-worth family
5. People who receive an unexpected inheritance/windfall

From psychology we know that, when we feel guilt or shame, we will use a variety of different coping mechanisms to release the guilt. The challenge is that, while the coping mechanisms often provide short-term relief, they are not a long-term solution.

So, what impact does affluence guilt and shame have on the way that you manage your resources and relationships? The most common and easily recognizable impact is the under-accumulation or rapid spending down of assets (i.e., net worth impact). For every level of income, there is an expected ability to manage your resources in a way that will be able to support your current and future needs. Yet those who feel guilt and shame about making or having large amounts of money will tend to under-accumulate resources because they can't imagine themselves as being the person that has sufficient resources. Having negative connotations attached to affluence causes subconscious actions to occur and sabotage efforts at appropriately managing resources.

Affluence guilt and shame also impacts the way that we manage personal relationships. Let’s say that you have a friend who you know is making much less than you are, and you feel bad that they do not have the same resources as you. You may find yourself buying things for them that they didn’t necessarily want  because you feel insecure about your level of affluence. So, you take deliberate and intentional action to make sure that they are provided for. Unfortunately, all too often, this reinforces the divide in resources and can lead to resentment and withdrawal from the relationship. 

The journey of living with affluence takes work. It has its own unique set of challenges and opportunities. When you take intentional steps towards learning to live with affluence it can provide both great personal satisfaction and positive change for the world.   

Feel free to give me a call to talk more at 980-275-1627.

Ed Coambs


Edited by Reena Arora of Arora Media, connect on Facebook
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