Why people believe weird things about money

[jeffrey]

Would you rather earn $50,000 a year while other people make $25,000, or would you rather earn $100,000 a year while other people get $250,000? Assume for the moment that prices of goods and services will stay the same.

Surprisingly -- stunningly, in fact -- research shows that the majority of people select the first option; they would rather make twice as much as others even if that meant earning half as much as they could otherwise have. How irrational is that?

Why people believe weird things about money - Los Angeles Times

[Broken Arrow]

Strrrange. I leaned towards the latter at first, but then I wondered just how many people is "other people"? Because, if everybody else is making that, then all else being equal, the cost of living is going to adjust accordingly, and I would screw myself since my buying power would be greatly reduced.

But if "other people" meant just a small handful of people around me, then I would take the latter option in a heart beat. I don't care about what other people make (unless they want to donate to my charity ), I'm only worried about what I make.

But yes, I think it's highly irrational indeed, to compare yourself with others like that.

[sweeps]

Good article. Just recently there was a thread where someone posted she was really happy in her flexible, 6-figure salary job -- that is until she found out her co-workers might be making more. That made her suspicious and unhappy.

[PrincessPerky]

Id take the latter..it said assuming other prices stay the same..we know they won't, but we also know no wave of a magic wand will triple my house income.