Do you have a “psychic income”…?

Vikram Karve

7 min readFeb 11, 2024

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PSYCHIC INCOME

Musings of Veteran Vikram Karve

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“You put in so much time and effort doing writing and blogging…” my Chartered Accountant (CA) friend said to me, “do you get any income from your writing…?”

“I get “psychic income” from my writing…” I said to him.

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My money-minded CA friend look nonplussed.

He said to me:

“I am an expert in finance — and — I have been a tax consultant for many years — I know about all types of income — but — I have never heard about an income called “psychic income”…”

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WHAT IS PSYCHIC INCOME

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Dear Reader — do you know what is “psychic income”…?

Psychic Income is pleasure and satisfaction that someone gets from doing a job — rather than the money that they earn for doing it.

Psychic Income is intangible and qualitative — and derives from the satisfaction and enjoyment of doing something — so — psychic income may also be called “enjoyment income”.

All jobs have a “psychic income” — besides monetary income like pay, allowances, perks etc.

Psychic Income comprises qualitative rewards (prestige, pleasant work environment, job satisfaction etc) — these are rewards that are not measurable in terms of money or goods — but serve as an incentive to work in certain occupations or organisations.

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TWO TYPES OF INCOME

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Every job has two types of income:

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1. Quantitative (monetary/materialistic/tangible) income

2. Qualitative (psychic) income

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Let me give you a few examples of psychic income.

In the 1970’s — when I joined the Navy as an Officer — there was no great disparity in pay and career prospects — between the Navy and Civilian Jobs.

I remember that — those days — the salaries and career prospects in the Navy (and Defence Services) were comparable to those in the Civilian Corporate World and Industry.

In fact — there was a glamour attached to uniform — which gave us Naval Officers a sense of pride — which outweighed the slight salary advantage our counterparts in the “civvy street” enjoyed.

I call this this “sense of pride” as “Psychic Income”.

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So — in the 1970’s — my overall compensation (Financial Income + Psychic Income) outweighed the compensation my classmates got in the Civilian Corporates/Industry.

Today — things may be different — especially since liberalisation in the 1990’s.

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AN EXAMPLE OF PSYCHIC INCOME

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STORY

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My late father once told me a story.

Around 75 years ago — in the year 1948 — as a newly commissioned Air Force Officer — my father drove down to New Delhi from Ambala (where he was posted).

He wanted to get Ceremonial and Winter Uniforms stitched from the Official Air Force Tailor (a prestigious tailoring establishment in Connaught Place in New Delhi).

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Those days — military officers had to get their uniforms stitched from an official military tailor — appointed by the Army, Navy or Air Force — most officially appointed military tailors were prestigious tailoring establishments who provided top quality cloth and tailoring.

I think this practice was still in vogue when I joined the Navy in the 1970’s — and — if I recall correctly — we had Officially Appointed Navy Tailors like Fernandes at Ballard Estate in Mumbai, Sadasivan in the Naval Base at Kochi etc. — and — in Pune — we had Lords — a prestigious civil and military tailor on East Street near George Restaurant.

(The prestigious Lords Civil and Military Tailors Pune closed down many years ago).

Later — things changed — and — one could get uniforms stitched at any tailor of one’s choice…

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To come back to the story — around 76 years ago — in the year 1948 — as a newly commissioned Air Force Officer — my father drove down to New Delhi from Ambala (where he was posted) — in order to get Ceremonial and Winter Uniforms stitched from the Official Air Force Tailor (a prestigious tailoring establishment in Connaught Place in New Delhi).

After getting measured for uniforms — the tailor asked him if he would like to get a lounge suit stitched from the top-quality exclusive cloth he had just received from England.

My father liked the cloth and wanted a lounge suit stitched — but he hesitated.

Seeing his hesitation — that tailor asked him if there was any problem.

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My father explained to the Tailor:

“Well — after paying for all these uniforms — I don’t think I will have any money left for the suit…”

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The tailor smiled at my father and said:

“Sir — who is asking for money.

You are an Air Force Officer — your credit is good as gold — please get whatever clothes you want stitched — we will open a credit account for you — as we do for all Officers — and you can pay at your convenience…”

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This is “Psychic Income”.

The respect and honour given to you as a Military Officer cannot be measured in money.

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I had a similar experience many years later — in the early 1980’s — as a Naval Officer.

I had gone to RTO Office on Tilak Marg in New Delhi to renew my driving licence.

Since I had gone directly from office on my scooter — I was wearing Navy Uniform.

I parked my scooter and went to the enquiry counter.

The RTO employee looked my licence and spoke to me.

“Your driving licence was issued in Jamnagar — you will have to get an No Objection Certificate (NOC) from RTO Jamnagar…” the person at the enquiry counter said.

Then — he looked at me standing in Navy Uniform — and — he dialled a number — and he spoke to someone.

He put down the phone and asked me to follow him — and he took me to the office of the Deputy RTO.

The Deputy RTO introduced himself and asked me to sit down.

He ordered a cup of tea for me — and talked about the Navy.

Then — he had a look at my driving licence — and said to me:

“No problem, Sir — I will get the renewal done — just fill up this NOC form — we will send it to Jamnagar and get the NOC — and we will renew your licence. Meanwhile — I will issue you a temporary licence…”

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One month later he called me at my office and told me that my licence had been renewed.

This is “psychic income”.

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Working for a prestigious organisation gives you “psychic income”.

In the 1970’s — in Pune — working for TELCO — gave one “psychic income” — as compared to one’s counterparts working in other industrial companies.

(TELCO was the acronym for Tata Engineering and Locomotive Company — now known as Tata Motors)

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So — when you decide to take up a job — consider the qualitative “psychic income” in addition to the quantitative “package” they offer you.

In fact — the qualitative “psychic income” forms a part of the “holistic compensation package”.

Job Satisfaction, Work Environment, Reputation of your Employer, etc. — these qualitative aspects constitute “psychic income” — which may enhance or offset quantitative “monetary” aspects.

So — make sure you consider “psychic income” as a part of your overall “income”.

Some professions like Teaching have “psychic income”.

Other examples are Judiciary, Civil Services, Defence Services, Doctors, Counsellors, Scientists, Researchers, etc — even Politicians.

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Think about it — Dear Reader.

You know your quantitative financial income (pay, perks, benefits etc).

But — have you “computed” your qualitative “psychic income”…?

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Remember:

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Total Income = Financial Income + Psychic Income

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CONCLUSION

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To put it in a nutshell:

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Quantitative “Financial Income” gives you a “Standard of Living”.

and:

Qualitative “Psychic Income” gives you a “Quality of Life”.

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Think about it — introspect — on your “psychic income” — and how to enhance it — for a better quality of life.