Despite their high levels of wealth, a recent study has shown that individuals are often reluctant to outsource disliked household chores.
Outsourcing may seem like an obvious solution to time scarcity, yet people don’t do this nearly as often as expected - even by those who have the means.
In the study, approximately 40% of a group of 800 wealthy individuals from the Netherlands reported not outsourcing any disliked household tasks, possibly due to feeling guilty spending money on ‘unnecessary’ services.
Interestingly, the same study showed a direct correlation between paying someone else to complete unenjoyable daily tasks and increasing overall life satisfaction.
Researchers found spending the same amount of money on material goods didn’t have the same effect on happiness.
With this in mind, outsourcing your disliked tasks is arguably a sound investment given the positive effect this can have on overall life satisfaction and wellbeing.
Aside from being free of tasks we don’t enjoy, the extra time we get back for more meaningful and enjoyable activities - such as spending time with family or friends, exercising or volunteering – is invaluable.
Do you want to ‘buy’ more time?
Our clients are also effectively buying time when they outsource investment management to us.
While many clients are capable of managing their own investments given the time and/or inclination, they choose to delegate this responsibility to free-up time to focus on other aspects of their life.
For some clients, despite being self-directed investors for most of their life, their interest in following markets on a daily basis may no longer be as strong. There may also be a sense of the stakes becoming higher as their level of wealth grows. An increasingly complex investment environment is another trigger for individuals to outsource investment management.
If you would like to discuss your personal financial situation, please contact your local Private Wealth adviser today.
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