I know, I know - this post is a day late! This time, I’m blaming the chaos of the tax year-end. But hey, better late than never - here it is!

Money isn’t just a tool for buying things - it’s deeply emotional. Our relationship with it is shaped by personal experiences, long-held beliefs, and unconscious biases. These factors influence how we earn, save, and spend, ultimately shaping our financial well-being.

I’ll dive deeper into this in a future post, but for now, I want to talk about three powerful forces that can drive people toward financial ruin: envy, greed, and blind optimism.

The Seduction of "More"

Many people lose everything because they’re never satisfied - they always want more. The problem isn’t achieving financial goals, but knowing when you have enough. For many, the concept of “enough” is elusive, as they continuously chase the next milestone without realising the dangers of this endless pursuit.

At the start of their financial journey, having £10,000 saved would feel like an incredible achievement. But once they reach that goal, £50,000 suddenly feels like the new target. Then £100,000. Then a million. And on it goes. The cycle never ends.

The moment they reach a new financial milestone, the comparison game begins. A colleague earns more, so they feel they should too. A neighbour upgrades to a bigger house, and suddenly, theirs feels too small. In a culture that glorifies money and success, the pursuit of "enough" is overshadowed by the relentless desire to outdo others. It’s no longer about financial security - it’s about keeping score.

The Cost of Never Having "Enough"

Envy is one of the most destructive emotions when it comes to money. There are countless examples of people with enormous fortunes who risk everything simply because someone else has more. This constant comparison drives reckless financial behaviour, as individuals become fixated on getting richer at all costs.

Consider the story of Rajat Gupta, as shared by Morgan Housel in The Psychology of Money. Born in a Kolkata slum, Gupta defied the odds to become the CEO of McKinsey, amassing a fortune of $100 million - a remarkable success by any standard. But for him, it wasn’t enough. He wanted more. Consumed by envy, he set his sights on becoming a billionaire.

In 2008, amid the financial crisis, Rajat Gupta sat on the board of Goldman Sachs when he learned a game-changing piece of information: Warren Buffett was about to invest $5 billion to keep the firm afloat. Before the news became public, Gupta contacted a hedge fund manager and bought 175,000 shares of Goldman Sachs. It was blatant insider trading - illegal and unethical - but Gupta didn’t care. That single move made him $1 million.

But his greed didn’t stop there. By the time prosecutors caught up with him, Gupta had made $17 million from illegal deals. He never became a billionaire, but his desire for more cost him far more than just money - he ended up serving a hefty prison sentence.

This story illustrates how envy can drive reckless decisions. The cost of trying to outdo others often outweighs the potential financial rewards, leaving individuals with far more to lose than gain.

The Dangers of Blind Optimism 

Optimism is a powerful mindset - it fuels risk-taking, innovation, and long-term thinking. But when optimism ignores reality, it turns into blind optimism, which can be dangerous.

Many people assume their financial situation will always improve, leading them to take on excessive debt or make reckless investments. Blind optimism makes people underestimate risks, dismiss warnings, and ignore red flags - until it’s too late.

Take the 2008 Housing Crisis

In the early 2000s, millions of Americans bought homes with little or no deposit, convinced that house prices would keep rising indefinitely. When the market crashed, many were left drowning in debt, losing both their homes and their savings.

Or Consider the Dot-Com Bubble

Investors threw money into internet startups, believing technology would revolutionise business and that stock prices could only go up. While the internet did change the world, many overlooked the fact that these companies had weak business models, no profits, and inflated valuations. When the bubble burst, fortunes vanished overnight.

The Lesson?

Just because something hasn’t gone wrong yet doesn’t mean it won’t. Blind optimism can lead to overconfidence, excessive risk-taking, and financial ruin. True financial success comes from rational optimism - believing in long-term growth while preparing for setbacks along the way.

The Challenge of Keeping Wealth

Amassing wealth is one thing, but keeping it is an entirely different challenge. In fact, around 40% of all publicly listed companies eventually lose their entire value. This mirrors what happens in personal finance, business, and investing - many people win big, but overconfidence and poor decision-making often cause them to lose it all.

Humility is a cornerstone of long-term financial success. Acknowledging the role of luck, staying mindful of personal biases, and guarding against envy, greed, and blind optimism are essential for not just building wealth - but preserving it.

Conclusion: Discipline Over Desire

At the end of the day, preserving wealth demands far more discipline than acquiring it. The pursuit of “more” can be tempting, but true financial security comes from balance. Aligning your money with personal goals and values leads to deeper fulfillment. Knowing when you have enough, resisting comparisons, and understanding that lasting success requires both ambition and restraint will serve you far better than chasing endless milestones.

Instead of fixating on isolated success stories, focus on the core principles of financial stability: consistency, patience, diversification, and long-term investing. True financial success isn’t about endlessly chasing more; it’s about recognising when you have enough and managing it with discipline, humility, and a steady hand.