To Find Happiness, One Millionaire Gives His Wealth Away
Published on - February 10th, 2010 (by J.D. Roth) One of the primary themes of Get Rich Slowly (and of Your Money: The Missing Manual) is that it’s more important to be happy than it is to be rich. I learn this lesson over and over again, but sometimes it seems like I forget it just as often.
At the end of last summer, before I started the book project, was one of the happiest times of my life. Everything was in balance, and I felt fulfilled. The last few weeks have been miserable. Sure, I’m working on things that I love, but that’s all I do. My life is out of balance, and it has affected my happiness.
Yet again, I’m reminded that it’s more important to be happy than it is to be rich. (Not that writing a book is ever going to make me rich!)
Trading money for happiness
Yesterday, a GRS reader called Dtrain forwarded a story to me about Karl Rabeder, a 47-year-old Austrian businessman who is giving away his entire fortune. He’s decided money makes him unhappy. From the article:
“My idea is to have nothing left. Absolutely nothing. Money is counter-productive — it prevents happiness.”
He will move out of his Alpine retreat into a small wooden hut in the mountains or a simple bedsit in Innsbruck, surviving on £800 a month while the proceeds go to a charity he set up in Latin America. He will draw no salary from it.
“For a long time I believed that more wealth and luxury automatically meant more happiness. I come from a very poor family where the rules were to work more to achieve more material things, and I applied this for many years.”
But over time a conflicting feeling developed. “More and more I heard the words: ‘Stop what you are doing now — all this luxury and consumerism — and start your real life’. I had the feeling I was working as a slave for things that I did not wish for or need.’
Rabeder is selling his £1.4 million lake villa in the Alps through a raffle. He’s already sold another home, his business, and his gliders. He’s serious about giving away his £3 million ($5.3 million) fortune.
Doing what works for him
I think this is an interesting story as-is — how many folks are willing to abandon a luxury lifestyle and return to something meager? — but what makes it a must-read is the final paragraph. Rabeder alludes to the “unbearable lightness of being” (one of my favorite books, by the way) and confesses that he doesn’t judge anyone who decides to keep their wealth. Why not? Because he’s doing what’s right for him, which may not be right for anyone else.
I’ve been thinking a lot over the past several days about what is right for me. What is it that will bring me happiness? It seems pretty clear that intense focus on a single project is not the answer. And to be honest, now that I’ve defeated my debt, accumulated a sizable nest egg, and have significant positive cash flow, money is no longer a goal for me. Instead, I’m ready to take some time for myself, explore long-dormant interests, and to rediscover my friends. In other words, I too am ready to make financial sacrifices to obtain more happiness.
[The Age: Austrian tycoon Karl Rabeder gives up fortune]
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Good for you! Sabbaticals are great.
Re: the book project. I sure wish I enjoyed doing things as much as I enjoy having things done. (I’d be doing a heck of a lot less surfing the internet if I did.) It’s a lot easier when there’s a finite goal to push towards (like a dissertation or a book), but at some point I realized that my life is going to be full of projects and once one is done another one will take its place. So moderation is necessary, at least for me. (And if you haven’t checked out a Robert Boice book yet– I still totally recommend doing so.)
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JD: You reached an important realization – in time to capitalize on it. But watch the language! Perhaps Mr. Rabeder doesn’t think of his hut and his prospective life as “meager.” Maybe, because he’s making his own choice, he considers his new life rich. In any case, congratulations on seeing the light, and good luck figuring out what comes next
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I would be interested to know where this guy is going to be in 10 or 20 years. It sounds like he has never been happy yet. He wasn’t happy when he was young and poor, he isn’t happy being older and wealthy. I believe happiness is,once your basic needs are met, outside of wealth. I predict he won’t be happy without wealth either. I don’t get the idea he knows what will be fulfilling. Maybe giving away his money? He said it made him feel lighter. Once you’ve given it away, do you still feel happy or is that a one time thing?
He talks about his 3 week vacation without meeting a single “real” person. Was he a real person?
I’m not arguing he shouldn’t, I’m just of the opinion that his life will still be missing something. I don’t see him identfying what is being “fixed” by this step. I hope, for him, it won’t and this step will provide him with what is missing. I hope but am not optimistic.
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What an interesting contrast to the most recent article about what to do with a million! I’m not saying one is better than the other, but was this just a coincidence?
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I can so related to this guy.
I was in my upper 20′s, making $200K a year, working 90 hours a week and had hundreds of thousands invested/saved and had a huge house. I was miserable cuz I worked too much and stress was literally killing me.
So after my stay-at-home-play-video-game-all-day-long ex-husband divorced me and took every penny and the house away from me (don’t even start on the divorce law with me…), I moved to Colorado and rented a one bedroom apartment and furnitured the entire place with $700 craigslist finds. Tell you what, that was a GREAT TIME!!!
To my surprise, I was so much more relaxed because I had less “things” to take are of and less “accounts” to maintain. Simple life was AWESOME!!
Soon, I quit my slavry job and took a 50% salary cut to work for a local company.
I am so much happier now.
Truth to be told, money can’t buy you happiness. Living simple is really a wonderful feeling. I didn’t choose to forgo all of my fortune. But I am so happy that ex-husband took everything away from me so I could have this new perspective.
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IMHO, money is just a resource. Just because you have a lot of money doesn’t mean that you have to spend it on a silly pompous lifestyle. I think Rabeder literally didn’t know what to do with his money, so he wasted it on a foolish lifestyle that didn’t make him happy. It wasn’t his money that was making him unhappy, it was the lifestyle he chose to live using the money. In the end, I think it was guilt from having such a luxurious lifestyle that made him decide to give it away (after all his childhood family had it rougher). Having extra money is good for many things… Friends that need help, emergencies, etc… the list goes on and on…
As for you J.D., I think writing a book is an incredible thing, and while it is still work, you should be immensely proud!
! Hat off to you!
Great article, I’m going to imagine what if I was in Rabeder position financially and how I would spend my money resources if I were rich like he was.
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Argh! This wasn’t supposed to go up today! Erica’s post still had plenty of juice left. Oh well. This one’s good, too.
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Since I’m a recent university grad, am paying off debt, and my job is well paying but not secure, I have to say the whole “money doesn’t buy happiness” concept ticks me off a bit. No, money can’t replace health or relationships, but I can tell you that if I had a bit more money and could pursue the things I really want to do, I would be a LOT happier. Most of my worries are directly associated with my weak financial footing. There is a lot more to life than money, and I do enjoy the simple pleasures, but it’s true that the majority of my worries would vanish if I just had more cash. I’d rather worry about what to do with my wealth than losing my temporary job and having to wait tables (etc.), or what happens if they don’t renew my contract and I get right back into debt as soon as I pay it off…
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The funny part of this whole thing is many people that “retire” and start doing what makes them happy start making more money than they did in the first place.
The level of “happiness” associated with money has to do with your lifestyle. No matter how much you make, if you spend more, eventually the bankers make sure you are not happy.
As a tool if you spend less than you make, the money gives you freedom to do things that you couldn’t do otherwise.
The true happiness factor lies within us, and we whittle it away every time we don’t say “no” to something we really don’t want to do and do anyway.
Good luck on the book, writing mine caused me to re-evaluate my entire business and we sold 90% of it, keeping only the part I wanted, and dumped everything I should have said “no” to for the last 5 years.
I agree J.D. that focusing on a single project is only a temporary solution. It is getting focused on a purpose that makes the difference. That purpose may give you lenses to focus on several different things, three to five or more.
It is a little funny that J.D. mentioned the ability to do things because debt and cash flow were under control.
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I completly agree with #8 to the fullest. If I had just a few more $ to ease my fears I’d sleep a lot better.
JD- I just started reading your blog and I loves it! Actually poping my head out of the sand to learn some PF (even though I do not in the slightest have the $ TO invest or save..) was a huge step for me. Ignorance is bliss and what not.
Hows about a post about how people manage their finances areound daycare expences? I have a 5 and 1 year old and we pay $280 per WEEK. Yes you read that right-per WEEK. $14,560 per year…
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JD
Absolutely mind bogling article. Great one man. I love your articles. Please keep them articles written only by you coming.
But please please please please use your great discretion to pick up guest articles to post on your site.
If you dont have any good articles on a particular day or you are really busy on a given day, we will wait until you have time for a new article written by you. It is always better to read one gem of an article once in 2 days than one good article on one day and bad article written by others the next day.
You are awesome man. You make my day everyday. But only on days when you write the article.
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I thought you would appreciate this comic.
‘I don’t care if it was on Sale”
http://tmcm.livejournal.com/339758.html
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Very interesting story. The key take away here is doing what works for you it seems.
I wish more people understood that concept. It seems that many of us just imitate what others do without thinking about it twice: “Everybody does it, so it must work!”
Such thinking will get you nowhere in life. Well, it will. You will end up living somebody else’s life instead of your own. How many times have you thought about living your OWN life, not following somebody eles’s and realizing that many things that people do are just not for you? Just because being wealthy and famous seems like the thing to do, it might not be for you.
We are all unique in our way and try to live a one size fits all life, will lead to unhappiness.
Best,
Tomas
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It’s so very simple, and has become oh too clear to me this year—happiness is virtually independent of externals: you either have it, (mentally) or you don’t. I’ve determined this, after a considerable chase throughout my life to date, (soon to be 41) that I’m likely chemically imbalanced, or just plain not programmed with the genetics to be purely happy. It’s a dismal catharsis, but it’s alleviated an inane pursuit of something that will likely never exist. Sorry to crash my reality, and I seek no pity—I only speak my own truth.
Good luck to everybody else though!
TD
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I wonder what happens if he breaks a leg, goes to hospital and they say, “Sorry, no money, no fixie”.
Does he get a chance to say, “I changed my mind, I would like to have my money back”. Do you think the receiver of the gift would in turn give back? Don’t think so.
Certainly money is nothing more than a tool. To look upon money as something evil is something foolish.
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He could have lived the same existence with or with out the money. Now he’s a broke lonely guy. It’s great that he gave it all away to charity, but the fact remains he will still be unhappy unless he finds the source of what’s making him unhappy.
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Seriously
He could have started a charity, made a difference and still had his rad ski lodge and cycling headquarters in delightful sunny France safe from media scrutiny and been happy.
I am looking forward to the follow up in 12 months where he cries “What have I done?!”.
Yep, a house in delightful Provence, ski lodge in ze Alps etc etc sound HORRIBLE.
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while most of the people > struggles to make ends meet in this material world >> it seems a stupid act.to give up all his weatlh .just for a little thing such as happiness and true Love and its true money cannot buy true happiness and true love >> HE HAS BEEN THERE>> AND BACK ******A wise man said >> GIVE AWAY ALL YOUR RICHES AND COME FOLLOW ME ****you will get what youre looking for
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Isn’t it strange that most people who are interested in measuring happiness are unhappy?
Maybe it doesn’t exist, and the people who don’t care don’t notice?
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Sounds like a bit of a nut to me. Whatever–it takes all kinds to make a world.
It does make me think, though–if my financial goals don’t take as long as I thought, will I be lost and floundering, wondering what to do with myself? I’ve noticed that I’m happiest when I’m planning for something. Although I guess there would just be different things to plan for in that case.
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He’s doing what works for him. Why is everyone concerned about whether he’s doing the right thing, whether he will find happiness, or even wishing him to fail? Let him be, and do your own thing.
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Thats what Gates did! Spent the first half of his life building wealth. Second half giving it away. Once you’ve gotten to the top of the mountain, i bet it wasn’t all it was cut out to be
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It appears the guy doesn’t know what makes him happy, money had no say in it. Sounds like he bought a lot of really expensive “stuff” once he had money, because he thought that’s what one does, or thought it would make him happy, but it did not. So now he gives it away, thinking that will make him happy.. but its just stuff. Beyond a certain point of comfortableness, I don’t think things can add or detract from your happiness.
@Raghu, I am one who liked the previous guest post and enjoy the diversity of writers. Compare Erika to this guy. She spent less money to buy time, which did give her happiness, but her choice was heavily criticized by some. This guy used more money to buy stuff, and he’s unhappy. It’s an interesting comparison.
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To each his own. It’s a wonderful thing to live simply, but I tend to agree with the people who have said that having wealth is no excuse for living a silly pompous lifestyle. Everything the man will have access to without his money, he could have access to with his money. I just don’t see how it gets in the way.
There’s a great post over on LifeTuner by Jeff Yeager about how simple living is key to complex financial times. Check it out:
http://www.lifetuner.org/advice/124-simple_living_is_key_to_complex_financial_times
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At least the man who gave it all away lives in a country that provides health care for its citizens. As a Western European, he has a safety net to fall into.
If he lived in the U.S., he’d need money each month to pay the insurance companies that feed into the for-profit medical industrial complex. (One-third of the U.S.’s medical expenses are insurance-related. Where are the incentives to cut costs, or the government’s incentives to foster better nutrition–for example, not subsidizing corn/fructose as an ingredient in processed food–when the bottom line is foremost?)
My doctor says that insurance clerks are practicing medicine without a license when they tell her what she can and cannot do with her patients.
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I would not necessarily write off big projects — you just need to work out the timing so that your life can stay balanced while you work on them. The timeframe for your book was WAAAAAY too compressed, in my opinion. It probably would have been a much more enjoyable experience (and perhaps a better book overall) if you (and your editors) had given yourself a year — or even more — to complete it.
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I agree with the comments that this guy may never be happy (and I speak as someone with ‘dark blood’ in my myself, as my grandmother used to say).
I’d also be worried about his old age and retirement. To be honest, I can’t concieve of how having that security in the future could make you unhappy, even if the consumerism was getting you down today. Perhaps he should have put it in a trust.
@J.D. – You’re a restless guy, I think. Perhaps come to terms with it, and then tweak and align your course, rather than looking for the big solution?
Just a thought.
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JD, I just want to add another vote in favour of continuing these kinds of posts. Once again, the writer describes something totally different than I would do, but I do really value having the varying perspectives, and the focus on different ways to use wealth once you’ve obtained it.
Please continue posting the occasional post dealing with life and issues after one has become “rich.”
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From my perspective, what this guy has done is terribly stupid. Middle-age crisis must have hit him hard and made him temporarily lose his ability to think straight. Money is not his problem, perhaps it has more to do with how obsessed he was with acquiring it and how he slaved away for years, sacrificing his personal life. Working endless hours in a job you don’t like, having no/little leisure or social life is not conducive to a happy and relaxed state of mind, no matter the size of your fortune. Being financially independant means you’re in as much control of your life/time as is humanly possible, thus saying “money can’t bring happiness” reveals more about yourself than it does about money, i.e. some people would be totally lost and in disarray if they had their leash removed. His apparent disregard for what makes up a lot of people’s fondest dream (being rich and independant) baffles me.
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Sounds like this guy understands that money is a tool, and it wasn’t doing the job he thought it would do for him. I suppose one could say he’s funding his choice of charity for selfish reasons, but at least he’s doing good for others. That fortune will bring happiness to hundreds or thousands of people when it was bringing him none before. Good for him. Giving away one’s entire fortune definitely wouldn’t work for everyone, but I think everyone can benefit from practicing compassion and generosity. Thanks for posting this! And I hope you find the balance you’re seeking in your own life, JD.
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Hey JD,
Great post! I love your insight. I read an article on Entrepreneur.com yesterday that has to do with this matter, but in an entirely different light. You’ve got to read what the “Turn Around Ace” wrote about business and family on Entrepreneur.com.
http://www.entrepreneur.com/management/columnistgeorgecloutier/article204856.html
I was shocked to find that this was no parody. Since there wasn’t anywhere to comment, I posted a comment on his site. Since then there’s been quite a few follow up comments.
http://www.turnaroundace.com/index.php/blog/comments/house_hits_home_with_fat_paychecks_leaves_a_few_lumps_of_coal_for_small_biz/
It would be awesome if you could point out this conversation. Thanks!
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Money cannot make you happy or unhappy. It’s money, nothing more.
Things, certain people, boredom, and ill health (mental included) can make you unhappy.
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I don’t understand why nobody has asked this yet, maybe the question is answered in one of the links. But OH EM GEE, HOW CAN I GET IN ON THAT? He can give some money away to me, shoot!
As an aside: I have personally found that you *can* buy happiness, and it’s called Wellbutrin.
I’m serious – if a person struggles so hard to find any happiness and even goes to extremes for it, they may actually need an antidepressant.
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There’s an interesting book that has recently come out, authored by a teenage girl and her father, about their journey to sell their larger house, move to a smaller one, and donate the rest to charity.
http://www.thepowerofhalf.com/home
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I am glad you brought attention to this story for GRS readers. Although my wife and I are young, not anyway close to being millionnaires, we have tried to put our happiness first. Consequently, we decided this week that I would resign from my current job with a decent paycheck, for a slightly lower paying job, but potentially better working environment. For us, like Mr. Rabeder, happiness is subjective and should be sought after whether you’re rich or not.
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Interesting that he’s quoted as saying wealth prevents happiness. I think that idea is as dysfunctional as the expectation that wealth will lead to happiness.
I have a feeling that he’s going to give away his things and realize that he’s still not happy. Unless he’s too busy trying to survive to even think about happiness, in which case I suppose it’s a success.
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Yeah, I’m with Lindsay. How do I get my address to this guy? I’d happily take as much of that lovely green stuff off of his hands as he’d like to give away to me. HAPPILY.
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On the article side, I’m just realizing that I’m one of those people that just isn’t really driven by it. As the income in our household rises, Ive realized that selling my soul to the corporate world isn’t working for me and am planning on shifting over two years to something more suited to my needs.
And JD, please feel free to add guest writers/moderators and whatever else is needed to ease your burden and increase your happiness.
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I completely understand where he is coming from. It is the same reason why, although I have an accounting degree, I prefer teaching elementary school. I enjoy working with the kids, and I am able to spend lots of time with friends and family, not to mention traveling during the summer. Even though I could be making twice as much working at a big 4 firm, I would be working twice as many hours and be stressed out all the time.
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I can see his point, but from my perspective he’s being rather rash and jumping the gun here. I don’t know anything about him except what was written here, but from this it seems like he was living over-lavishly and found he didn’t like it, and decided money was the problem and took it to the other extreme.
It’s like if you didn’t like your current hair style, but instead of going to get it cut differently, you run out and get electrolysis all over your head so you can’t grow hair anymore, instead of a well planned out decision.
I’m a huge believer in balance. Going from one extreme to the other isn’t balance, in my opinion, but I am clearly not the same as this guy. If he wants to live in a hut in the woods, more power to him, but nothing was stopping him from doing that before giving away his money.
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Hmm, I get the impression he’ll be unhappy with or without money. I find it hard to understand why he feels the need to get rid of it – why not just keep it in the bank/investments for security, but scale back his lifestyle if he doesn’t want to live lavishly? Having money doesn’t mean you have to spend it. Still, each to their own, & I hope he finds what he’s looking for.
As for money buying happiness – maybe not, but it certainly gets rid of a lot of the stresses that cause unhappiness. I’m generally happy now on my current small income, but there’s no getting away from the feelings of insecurity associated with not having a good financial cushion, and the frustration of not having enough time to do all the things I really want to, because I work so much (even though I love working on my business too). I know I’ll feel much more freer and more relaxed as my income grows, so yes, more money will bring more happiness for me, although I’m sure I’ll get to a point where it stops mattering so much.
I think the guest posts are a good idea too, even if I don’t always agree with them (& I generally prefer your writing). I especially like reading the ones from people who have some degree of wealth – as others said on the previous post, there’s only so much that can be written about the usual PF subjects such as debt-reduction, budgeting & the like before it gets repetitive. I intend to be wealthy, so it’s inspiring to read about life from that perspective, even if it’s not of practical use to me yet. I think your more expanded range of topics sets GRS apart from the other PF blogs I’ve read.
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I must confess, I don’t understand this man’s reasoning at all.
First, let me say that it is his money. He has the right to do whatever he likes with it.
Now to the part I don’t understand. He said: “Money is counter-productive – it prevents happiness.” I don’t think anything can be further from the truth.
It seems this man has confused having money with spending money on a 5-star lifestyle. Later in the article, he talks about being dissatisfied by having so many things.
If I had a $5 million fortune, I probably wouldn’t own multiple houses and a bunch of gliders. That isn’t in line with my values. Yes, I’d have a nice house and a couple of nice cars. But the 5-star lifestyle? Unnecessary.
You see, I know what brings me happiness. A bunch of expensive “stuff” isn’t it. That sure doesn’t mean I think money “prevents happiness.” What a ridiculous idea!!
I have family members with a net worth that’s about the same as this man’s. They live simply. House worth about $300K. Couple of nice cars. They give money to their children and to charities. They pay for summer camps and other treats for their grandkids.
Above all, they have security. No fears about becoming sick and not being able to live out life with dignity. They go on a great vacation every year.
Money doesn’t make them unhappy. It offers them security, peace and a way to help others.
As to the quote above implying that Jesus wants us to give everything away … the Bible also says you are to care for your household financially, and to leave an inheritance to your children and your children’s children. So those kinds of arguments don’t wash with me.
I’m sad for the man in this article. As others have stated here, he probably doesn’t know what happiness is. Having money – or not having it – won’t solve that problem.
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I think money might not bring “happiness” to everyone. What we neglect is our soul, which is why some people aren’t happy even after winning the lottery (maybe a year later). This man truly needs Allah’s guidance.
“Wealth and children are the adornments of the life of this world. But the permanent righteous deeds are better in your Lord’s Sight (to attain) rewards, and better in respect of hope.” [Surah al-Kahf, 46]
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