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10 Things Financially Happy People Do Differently

10 Things Financially Happy People Do Differently

Face it–money is one of the biggest sources of stress in most people’s lives. You can’t live without it, but worrying about it all the time can make you go crazy! Here are ten things financially happy people do differently. Read up and follow their lead so you can be financially happy, too.

1. They take steps to reach their goals.

Financially happy people realize you don’t have to accomplish everything all at once. So you can’t buy a car with cash–why not start saving up for a used one? Break every financial goal you have into steps, and you’ll see how easy it actually is to achieve.

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2. They don’t obsess over their bank balances.

Money makes you crazy because you can’t stop thinking about it. It’s understandable, when living paycheck to paycheck, to worry about how much money you have to live on. But obsessing won’t change the number on that bank statement. Financially happy people, whether they have money or not, don’t obsess over their bank balances. They push it to the back of their minds and focus on other things, like making said money, to keep from stressing themselves out over something they can’t easily change.

3. They spend within a budget.

Financially happy people know how much they make each month, and they know how much they have to spend. They allot enough money to pay their necessary bills, and make sure to not overspending whatever is leftover.

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4. They pay off credit balances to maintain good credit.

Financially happy people don’t have debt hanging over their heads. They pay down credit card bills every month to keep their credit scores up. Good credit scores that, by the way, will help them achieve more of those financial goals mentioned in step one.

5. They plan for financial misfortune.

No one wants it to happen, no one expects it to happen, but misfortunes will come your way. It might be a car accident, it might be a tree damaging your roof, or it might be getting laid off from your job. It’s going to be scary and will put you in a bad place, financially. But financially happy people worry about these troubles a little less. They’ve planned ahead for such misfortunes, and have at least six months of money in savings to live off of, in case they’re unable to work or need to make an unexpected major purchase.

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    6. They don’t buy impulsively.

    Shopping sprees might make you feel better when you’re down, but they’re not necessary. Financially happy people don’t buy impulsively. They don’t go out and buy three new pairs of shoes–they buy one, and only when they need them. This doesn’t mean they’re frugal or cheap, they just don’t make impulse purchases, which is usually when you pay more for something that’s worth less, just because you want it right then.

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    7. They find satisfaction with what they have.

    Another reason financially happy people don’t buy impulsively is because they’re happy with what they have. They don’t want to own the latest and greatest in technology, and they don’t need a closet overflowing with clothes. They realize those things aren’t as important as financial stability, so they curb the desire to spend money on such things.

    8. They’re smart borrowers.

    Financially stable people research all options before taking out a loan. This way, they’re not stuck paying an insanely high interest rate for the next twenty years. They make sure they understand all terms and shop around to get the loan that fits exactly what they need, and they don’t take on a payment that’s more than they can afford.

    9. They don’t avoid retirement planning.

    When you’re in your twenties, retirement planning sounds crazy. It’s so far in the future that you can’t imagine needing it. Or maybe you think that it’s better to have access to that money now, instead of putting it away for forty years down the line. Financially happy people see it differently. They realize that this money is an investment, and it’s going to pay off when they need it most.

    10. They don’t give up.

    Don’t let money get you down. Anything is possible if you work for it. Financially happy people don’t see their bank balance and give up all their saving, goal-making, and retirement planning. They don’t go out and blow whatever money they have left, or start taking out loans from fly-by-night companies. They don’t get depressed, and they don’t give up. It’s always possible to turn over a new leaf and start saving your money and spending it smartly.

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    Last Updated on June 26, 2020

    25 Easy Tips on How to Save Money Fast

    25 Easy Tips on How to Save Money Fast

    “How to save money fast?” This is the question asked by all of us not in the top 1% of rich people.

    If you are looking for ways to drastically reduce your expenses immediately, first look at what you need to spend money on every week. And I mean really need.

    You don’t really need to order in food. You don’t really need to buy expensive perfume.

    Building from that, you can work out how your regular expenses can be reduced.

    As for irregular expenses, they can also be deceptively costly in the long run. Once-off buys can also be tackled with some prudent planning and a little extra research.

    And remember: a budgeted lifestyle does not mean a bad or boring one!

    But first, understand what budget you can cut down on daily:

    • Regular expenses for the average adult (can be trimmed but not eliminated):
      • food
      • rent/mortgage
      • cell phone
      • insurance
      • socializing/entertainment
      • transportation
      • hygiene products
      • household bills
    • Irregular expenses for the average adult (can be eliminated or cut down a lot):
      • travel
      • clothing
      • medication (*depends)
      • grooming (hair, nails etc.)
      • gifts

    Now, let’s dive right into the 25 ways to save money fast:

    Save Money on Food

    1. Bring a stock of food to the office/work

    Instead of popping out for an overpriced salad and a smoothie, leave a set of basic utensils at the office as well as a stock of non-perishable goods such as tinned fruit, tuna, rice crackers and so on (try to avoid the junk food and this can turn into a pretty great diet!).

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    Stocking up means you won’t forget or say “I didn’t have the time” when you rushed out to work in the morning.

    2. Buy the store-brand version

    Many basic foods, such as bread and milk, will taste exactly the same as their branded alternatives. Go for stuff with minimal additives and preservatives. Meat in a tube is probably insanely unhealthy!

    3. Eat cheaper cuts of meat

    Learn how to tenderize and flavour cheaper meat and fish, and save on the (typically) most expensive item on your grocery bill.

    4. Have group dinners

    If 10 friends put $5 each in the kitty, it’s pretty easy to make a giant lasagne and get refreshments, as well as hang out with your favourite people.

    Save Money in Transport

    5. Get a bicycle

    Save on gas money and bus/metro fares with this underrated mode of transport.

    6. Use public transport and/or don’t get taxis

    Some places can only be reached by car. But as a good practise, check your public transport website and see if any routes pass nearby where you need to get to. Walk as much as you can.

    7. Find the cheapest gas

    Regularly check out where the cheapest gas can be bought.

    Save Money in General Shopping

    8. Shop online

    Not only will you save on the gas or transport fares from going to the shopping mall but you will also find better deals

    9. Sell your old stuff

    Get your unwanted belongings up on eBay ASAP and earn a few dollars.

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    Here’re more ideas for you: 25 Things to Sell to Make a Lot of Money

    10. Bulk buying stores

    For regular non-perishable/slow perishable purchases such as toilet paper, cat food, pasta, washing powder and so on, do an epic stocking-up trip to a co-op or equivalent (my mum used to go to a place that restaurants buy from).

    Be wary of supermarket “deals”, as some have been found to be fraudulent after working out a simple calculation.

    11. Become a flea market/car boot sale/street market guru

    You can find original gifts and develop good negotiation skills at these places.

    12. Generic brand medication

    More often than not, the generic version of paracetamol and other basics work the same as the branded version.

    13. Choose deodorant, not perfume

    It blows my mind when someone drops $70 on a bottle of spray. Stick with a nice deodorant, and not only will you smell just fine but you’ll be sweat-free as well!

    Cut Down on Household Expenses

    14. Printing

    Ink is one of the most expensive substances in the office and coloured ink is doubly so. B

    e more efficient and choose black and white, and if your printer doesn’t have a print-both-sides options, just print odd pages first, re-insert the paper and print even pages.

    Expand the margins of what you are printing as often as you can to save on paper.

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    15. Minimize SMS and phone calls

    A combination of a free chat service such as WhatsApp and a free call service such as Skype can reduce your bill to nothing (so long as you have a decent Wifi connection).

    16. Shop around for insurance

    Most people don’t spend enough time searching for the best insurance deal.

    Keep a watchful eye out for deals and new competitors in the market.

    17. Try re-negotiating your rent/mortgage

    If you have built up a good credit history or a good rapport with your landlord, then chances are a frank chat about needing to tighten your spending could result in lowering your payments. You’ve nothing to lose from trying.

    18. Don’t get a TV

    Invest in a computer/laptop and an internet-only package. You can watch more (and often better) entertainment on the web, and skip the advertisements as well.

    19. Pool your internet bill with a neighbour

    My apartment building is basically a big old house split into three apartments. There are five of us in total. We pool the internet bill, making it crazy cheap.

    Save Money in Socializing, Entertainment And Travel

    20. Have house parties

    Instead of paying for overpriced drinks, set up a series of in-house get-togethers with your friends. Everyone takes a turn, so it’s not always your house that needs cleaning.

    For sound insulation, hang heavy drapes on the walls and windows. For music, invest in a good second-hand set of speakers which you can connect to your computer. Let Spotify or Grooveshark playlists do the rest.

    21. Open festivals, meetups and events

    It never fails to surprise me how much underground stuff goes on around me for free or for very cheap. Find out who runs the blogs and websites that list all the less well-known cultural activities.

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    22. Volunteer

    If you can’t pay for a ticket, volunteer and get to be there anyway.

    23. Housesit

    There are multiple housesitting websites offering you the possibility to avoid paying hotels and skip the discomfort of crummy hostels.

    Save Money on Hygiene and Beauty

    24. DIY beauty

    French manicures, pedicures, waxing, eyebrows… pretty much all of these can be achieved at home (and done well) with some practise. There are plenty excellent blogs and YouTube tutorials to help.

    25. Fewer haircuts/volunteer at a trainee hairdresser

    If you can’t bear the risk of a trainee touching your locks, learn more ways to manipulate your hair as it grows and get haircuts sparingly. Women’s haircuts are outrageously priced in many cities.

    Bonus: Effective Money-Saving Tips for Everything

    Here’s a summary of what you can generally do to save more money:

    • Share/pool resources. Organize a neighbourhood sharing scheme, common resources for your apartment block or with your friends. Not everybody needs an individual lawnmower.
    • Buy energy-saving everything. The easiest way to lower your bills – replace those lightbulbs!
    • Buy in bulk. Be sensible about it (i.e. make sure you have space!), and drastically reduce weekly expenditure.
    • DIY. Skill up using YouTube tutorials on plumbing and many other essential services so you never have to pay for simple problems again.
    • Research a lot before making a decision. Most money-wasting is the result of poor preparation and planning. Don’t shirk this part just because you don’t like it!
    • Use your network. Your network is full of resources that can ease the pain of budgeting. Ask for help.
    • Stop and think. Do I really need it?

    Unfortunately, there are some things that require plain ol’ giving up for the time being. This can include high-cost sports such as skiing, the latest versions of some technologies, the finest brands of food/drinks, premier seats at the opera and most other indulgences.

    What is important to remember during lean times is that when you look back on your life, it will be the experiences that stand out, not the extra comforts.

    Living on a budget can teach you a lot about how much you can really get out of your paycheck. We only live one life, so make the most of every penny you earn!

    More Tips for Personal Finance Management

    Featured photo credit: Unsplash via unsplash.com

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