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Four Real Ways Money Can Buy Happiness

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Four Real Ways Money Can Buy Happiness

We’ve all heard that money can’t buy happiness. The material things of the world can bring temporary feelings of excitement and joy, but if you don’t possess an internal attitude geared towards being happy, those feelings won’t last. Perhaps happiness itself is a personal decision that can generally be upheld regardless of external influence. But in my experience, money can definitely affect how you feel in the moment and over the long term. And while money is often seen as an enemy to happiness, here are four real ways money can make you happier.

1. You Can Give Money To Others

One of the best things you can do with money is give it away. Yes, it’s counterintuitive, but giving away money might actually bring more happiness than earning the money in the first place. You’ll have to decide for yourself what level of giving you want to participate in, but it could be as simple as paying for a friend’s lunch. Even little acts of service and kindness will go a long way towards building your personal happiness.

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Another benefit of giving money is the creation of a healthier attitude towards money in general. You can cultivate a habit of giving and an understanding that more money will come. Indeed, many books and thinkers speaking about the idea of the law of attraction[1] claim that giving away money will help you make more money since you are constantly projecting a feeling of abundance and wealth. An attitude of abundance and giving can prevent selfishness and the negative feelings that come with it.

2. You Can Provide For Your Basic Needs

There is a difference between buying a steak and buying a can of beans, just like there is a difference between buying a Ferrari and buying a beat-up Honda Civic. While luxury purchases might bring incremental happiness, your quality of life and happiness levels could fluctuate quite a bit in between the stages of welfare and buying your own food.

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There is something very empowering about providing for your own basic needs. Think of the transition between high school and college or adult life. For most people, they have the opportunity to spread their wings and leave the nest. Where parents once provided food and shelter, now the individual must fend for themselves. And while it can be frightening and stressful at times, there is a real feeling of accomplishment when you find your first apartment or buy your first car. These need not be extravagant, but taking care of your own basic needs cultivates confidence and self-worth. No one likes to feel like they can’t take care of themselves, and money can help you to avoid that feeling.

3. You Can Get Yourself Out of Debt

One of the most personally damaging things that can happen in a person’s life is getting stuck in debt. Credit cards, new cars, vacations, medical bills, unexpected life events, unemployment, shopping addictions, and more can all lead to crippling debt. And once you’re in debt, the interest starts to accumulate, leaving you in a terrible cycle that can be extremely difficult to stop.

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While the misuse of money can get you into debt, the opposite is also true. Using money wisely can free you from debt and help you to create a brighter financial future. Make it your year to get debt-free by using these tips for paying off debt in 2017. While it may be a long road to get out of debt, you can help maintain motivation by thinking what your life will be like when you don’t owe anyone anything and you have complete control over your own finances.

4. You Can Do Something Personally Meaningful

Finally, consider ways you can use money to do something very personally meaningful in your life. Think of a big goal that brings you joy and a feeling of fulfillment. For instance, how would you feel to be able to help pay for your kids to get through college? How would you feel to be able to start your own non-profit organization?[2] What would it be like to create your own business or to make your next anniversary extra special?

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Money has the power to help you achieve goals that can bring more meaning to your life. Try and switch your mindset from a materialistic attitude to an attitude of finding meaning through money. This will help the next time you are tempted with an impulse buy at the mall. When you keep your larger life goals in mind, it will become easier to avoid quick purchases that might actually diminish your happiness in the long run.

The next time you hear someone say that money can’t buy happiness, think of some of these ideas. When you have a healthy view of money focused on giving to others, providing for your own needs, staying free from debt, and achieving personally meaningful goals, you might find that money can in fact improve your happiness and increase your quality of life.

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Reference

[1] The Law of Attraction: Discover How to Improve Your Life
[2] Grant Space: Starting a nonprofit

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Spencer Mecham

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Last Updated on July 20, 2021

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

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Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

Break Free of Your Finances

Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

Though it seems hard to believe, it is really very simple to get financial freedom.

To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

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Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

1. Stop Unnecessary Spending

We often spend money inwardly, instead of objectively.

For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

To stop this habitual spending, log down all your spending over the course of a month.

Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

2. Plan a Monthly Budget

This is a great opportunity to get serious.

Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

3. Cut-up Credit Cards

Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

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If not, you may want to consider ridding your life of the burden that credit cards bring.

Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

4. Increase Savings

There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

It’s good practice to save up to 15% of your income.

Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

5. Invest Wisely

Consider investing in funds.

Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

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Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

6. Invest in Gold

There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

Another way to invest in gold is through ETFs (Exchange Traded Funds).

These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

7. Stash Emergency Funds

Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

Make it hard to get your cash.

Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

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8. Find Fabulous Mentors

Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

9. Be Extra Patient

Patience is the key of financial success.

Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

Financial Freedom for All

Anyone can achieve financial freedom, regardless of their financial circumstance.

Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

Featured photo credit: rawpixel via unsplash.com

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Reference

[1] Hartford Gold Group: IRA Retirement Accounts

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