In Fyodor Dostoevsky’s novel Poor Folk, Makar Divushkin, a middle-aged copying clerk in 19th-century Russia, grapples with a life of poverty. Moreover, he is dissatisfied with his job, and believes his lack of skills makes his career prospect bleak. Instead of attempting to improve his situation, his thoughts are heavily consumed by Varvara Dobroselova, a young woman of higher social standing, with whom he maintains heartfelt letter correspondences. In a bid to win her affections, Makar Divushkin goes into debt and buys her expensive gifts, which ruins him financially.
Dostoevsky’s Poor Folk, which partly critiques the rigid social hierarchy of 19th-century Russia and the destitution of ordinary people, holds relevance in contemporary America, since many individuals similar to Makar Divushkin exist among us today. Potentially due to coming from a challenging background, they aspire to enhance how they are socially perceived, by engaging in activities such as pursuing university education, traveling, and acquiring cars and homes, often funded with debt. Alarmingly, in 2023, the total credit card debt in the US surpassed $1 trillion, with student loan balance nearing $2 trillion. On an individual level, a person who went to a university typically carried a credit card debt of around $7,000 and student loan of $30,000, largely in the pursuit of upward mobility.
However, when we have insufficient incomes to mange debts, these financial burdens can persist. Overspending beyond our means not only fails to improve our economic standing but it can also negatively impact crucial aspects of life, including developing and maintaining healthy relationships with the people that matter to us the most. Makar Divushkin’s story serves as a stark reminder; despite his efforts to win Varvara Dobroselova’s affection, she ultimately chooses a wealthy suitor who can provide her with the lifestyle she desires, leaving all of Makar Divushkin’s efforts in vain.
For young individuals, they have the opportunity to start building their lives on a clean slate, and avoid being in such a predicament. Before committing to university education, they must carefully consider their aptitude for higher learning and their family’s financial capacity to support it. Accumulating student loan debt, especially in fields where job prospects are limited, can saddle individuals with unredeemable financial obligations, making it difficult to move forward in life. There are alternatives to going to a university to build a successful career, notably becoming a skilled tradesman, whose job is unlikely to be replaced by machines as easily as many of the office jobs might be.
If you are like Makar Divushkin, no longer young, and struggling financially, it may be beneficial to reevaluate your lifestyle, and adjust it accordingly. While downsizing one’s standard of living is notoriously difficult to do, it creates a breathing space to address situations such as a job loss, and health emergencies. In addition, living a few steps below your true means allows for steady wealth accumulation.
However, the most critical step to take before embarking on achieving financial freedom, is to disengage yourself from trying to impress others, which gives you inner peace. If Makar Divushkin had realized its importance, he would have been in a better financial condition. Consequently, he might have had a better chance of forming a desired relationship with Varvara Dobroselova, which mattered to him the most.
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The Well Tempered Investor 