Whether you analysed the text in school or have watched the film, you’ll no doubt be familiar with the tantalising story of Jay Gatsby.
Indeed, 100 years after The Great Gatsby was first published, it’s still synonymous with the hedonism of the Jazz Age in New York City in the 1920s, from lavish parties to opulent mansions. And a century later, there is an important money lesson you can learn from its pages.
On the surface, the obvious money lesson might seem like it’s how to build wealth. After all, Gatsby is a self-made millionaire living a lifestyle many people dream about.
Yet, as the novel progresses, it becomes clear that Gatsby spends his money to show off his wealth and catch the attention of his lost love, socialite Daisy Buchanan. While Gatsby appears to have it all, he isn’t happy.
So, what’s the lesson you could learn from The Great Gatsby? Accumulating wealth alone won’t bring you happiness; how you use it is essential.
A financial plan focuses on what adds meaning to your life
When you think about financial goals, it’s easy to focus on wealth accumulation. You might have a set amount you’d like to see in your savings account or pension.
Financial planning involves shifting your mindset. Instead, you focus on what your lifestyle goals are and then how your assets could help you achieve them.
When you’re retirement planning, you might start by saying you want to retire when you’re 60. Then you may consider the lifestyle you want to enjoy in retirement – what’s most important to you? Spending time with family, travelling, or being part of a local club could all be essential to creating a fulfilling lifestyle.
With your desired lifestyle set out, you can start to understand how much you might need to save in your pension. A financial plan can then identify the steps you might take now to turn it into a reality.
So, unlike Gatsby, who believed simple wealth accumulation would lead to happiness, the focal point of your financial plan is what will make you happy and how your finances can support this.
The people in your life are essential for happiness
Starting in 1938, the Harvard Study of Adult Development has been tracking the happiness of hundreds of people to find out what they need for a good life.
In February 2023, researchers analysed 85 years of data, and found that, while a one-size-fits-all answer isn’t possible, social connections were essential. Strong relationships were found to improve health and wellbeing.
When the first round of participants turned 80, after decades of being involved in the study, they were asked what they were most proud of. For both men and women, the proudest achievements focused on relationships, such as being a good parent, friend, or mentor.
A lack of meaningful social connections is important to Gatsby’s story. He’s regretful of a missed connection with Daisy, and he spends huge amounts to gain her attention. While hundreds of people flock to his opulent parties, his existence remains a lonely one.
Bringing your important social connections into your financial plan could take many forms. You might:
- Gift assets to loved ones to improve their financial security
- Earmark money to spend on days out with your family or friends
- Dedicate some of your time in retirement to mentoring people in your local community
- Calculate if you could reduce your working hours or retire early to spend more time with your family.
So, rather than focusing on building wealth, starting your financial plan by answering this question could lead to a happier life: what do you want to spend your time doing, and who do you want to do it with?
A financial plan could help you make decisions based on happiness
If you want to learn from the mistakes of Jay Gatsby, a financial plan could provide you with an opportunity to consider what makes you happy and how your wealth could support this. Whether that’s exploring the world with your partner, enjoying days out with your grandchildren, or supporting community projects, we could help you understand how to use your assets to create the life you want.
Please get in touch to talk about your lifestyle goals and how you might achieve them.
Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.
