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Why Money Can Buy Happiness

Why Money Can Buy Happiness

Ah, happiness – an ideal many of us chase, hoping for contentment, bliss, and joy along the way.

While it may not be lasting, studies suggest that money can actually help you buy happiness. Forbes reports that University of Michigan economists Betsey Stevenson and Justin Wolfers convincingly demonstrated that the affluent are more content with their lives than the poor; in a paradigm-shifting study, they also showed that rich countries house happier citizens than poor countries. But why is that?

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Having money allows you to do what you want to do.

Their findings are not much of a shock, if we pause to muse. Money is a tool, and we use it to purchase high-quality food, fresh water, medical and dental care, and access to gyms or fitness classes that help keep us physically healthy. It takes funds to buy books, magazine subscriptions, adventure trips, or membership in hobby clubs to keep us intellectually stimulated. Dollar bills pay for the gas, air fare, and admission fees required to see those sites our souls thirst for, such as art museums or religious locations overseas, and allow us to donate to causes we believe in.

Having money can lead to increased confidence.

Money can create emotions that lead to positive circumstances. A new outfit, for example, is commonly considered to boost confidence. Increased confidence can land you that job, date, contract or simply add some hip-loosening swagger to your step. Money can buy fresh experiences and the equipment required to pursue hobbies, over time allowing you to cultivate a better sense of self and a creatively well-balanced being. For those who crave a sense of security, there is peace in knowing that enough money is saved in a bank account to cover a car that breaks down, a medical emergency with a child, or another unforeseen circumstance that can be smoothly and easily handled with appropriate funds.

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Financial security may also secure your marriage.

Money worries literally kill unions, as Jeffrey Dew presents in a 2009 work on the various correlations between financial problems and divorce. Loneliness or lack of a partner is a keenly felt source of sadness for many, and it stands to reason that a fulfilling, supportive partnership would be a source of happiness. An outlay of funds may also help hire nannies, cleaners, property maintenance crews, and other support staff to help a home run smoothly, easily, and with less stress on the couple in the marriage, perhaps in turn improving the chance of success in their partnership.

Money can buy happiness up to a certain point.

Buying happiness may not be quite that simple, however. Princeton University expert Angus Deaton’s work with Daniel Kahneman found that while the rich report feeling more positively about their lives, there is no direct correlation between wealth and a satisfied daily emotional state. Furthermore, they found that health, care giving, loneliness, and smoking were more prominent indicators for daily emotions. In conclusion, they argue that income can buy satisfaction but not happiness, though lack of income has a negative effect on both.

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How much money does it take to reduce stress and potentially allow for greater satisfaction or happiness? Enough to take care of needs, but not more than $75,000 in the United States, argue Deaton and Kahneman. After that threshold, subjects reported no greater increase in happiness or satisfaction than they experienced at that point.

Is money earned more satisfying than money inherited? Is it possible to quantify whether expensive tastes negatively impact happiness? The relationship between money and happiness is a complex one, but it seems that dollars can buy delight. For those who can afford it, at least.

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Wondering if anything presented here applies to you? Check out these 50 Money Quotes by Famous People that Can Change your Attitude Toward Money.

Featured photo credit: M.C. Chavez via flickr.com

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Published on July 4, 2018

Top 10 Recommendations on Money Management Apps

Top 10 Recommendations on Money Management Apps

Don’t want to overspend your budget, swipe your credit card too many times, and feel like a financial mess? Instead of beating yourself up for the bad financial decisions you’ve ever made, create a new plan!

The solution is simple, save more and spend less. But, we all know it’s easier said than done.

One problem is finding quality apps that save you time and money, and aren’t just hype.

Luckily, there’re many great money management apps available at your fingertips. Here are 10 reliable money management apps that can help you save money, and crush debt.

1. Personal Capital

    When was the last time you’ve tracked your net worth? Probably months ago or maybe never. Personal Capital allows you to easily track your net worth and plan for retirement.

    Here are some of its main features:

    • Sync many investment accounts, and expenses (mortgage, credit cards, etc.) in one place
    • Discover hidden fees and how much they’re affecting your retirement plan
    • Wealth management for investors requiring a long-term strategy

    With Personal you’re free to track your expenses and net worth.

    Available for: iOS and Android

    2. Mint

      If your smartphone could only install a few apps, Mint would be one of them. Why? Because Mint tracks all your balances and bills in one place.

      Here are some of its main features:

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      • Effortlessly track all your bills and balances in one dashboard
      • Categorized expenses to understand where you spend your money
      • Uncover hidden fees, and determine your investment style with sophisticated retirement tools.

      Feel at ease with managing your money by a reputable company that isn’t going anywhere.

      Available for: iOS and Android

      3. YNAB

        Everyone needs a budget, there’s no way around it. YNAB (You Need A Budget) is an easy to use app that will change the way you think about money. Their motto is to “give every dollar a job”, and you’ll quickly discover why.

        Here are some of its main features:

        • Easily sync all bank accounts in one place
        • Visually see your debt paying progress with eye-catching charts and notifications
        • Customized categories setting saving goals

        The best part about YNAB is the community that comes along with it. You can hop on the YNAB forum to receive support, listen to the YNAB Podcast or stay tuned for their weekly videos.

        Available for: iOS and Android

        4. Wealthfront

          Albert Einstein once said “compound interest is the eight wonder in the world”, and for a very good reason. The problem is, most people are scared or unwilling to learn the basics of investing. This is why Wealthfront is the perfect solution for the hands-off investors.

          Here are some of its main features:

          • Variety of investment account options including IRA, Roth IRA, and more
          • Your portfolio composed of 7 different asset classes
          • Automatically rebalanced portfolio
          • Daily tax loss harvesting

          Wealthfront is perfect for people requiring investment guidance, or prefer a hands-off solution.

          Available for: iOS and Android

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          5. Clarity Money

            If you’re staying on top of your budget but want to take your finances to the next level, Clarity Money can help you. Clarity Money helps you stay under budget and build a personalized savings plan.

            Here are some of its main features:

            • Easily cancel subscriptions with one click
            • Synchronize bank accounts fast
            • Transfer money effortlessly between different accounts

            Clarity Money isn’t an app that does it all. But, it does make transferring money and canceling subscriptions fast and efficient.

            Available for: iOS and Android

            6. Acorns

              What if there was a way to quickly gain confidence in investing your money, without too much risk? There is, and Acorns is your solution. With Acorns’s technology, you’re able to make investments as small as $5.

              Here are some of its main features:

              • Automatic contribution option
              • Customized portfolio tailored to your needs
              • Low management fees ranging from $1-$2 per month

              Stop wasting dollars on expensive coffee. Instead, invest them towards a brighter financial future.

              Available for: iOS and Android

              7. Albert

                Do you budget by only subtracting your expenses from your income? If so, how would you discover any overpayments or extra money you could save? This is where Albert shines, and it does it all free.

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                Here are some of its main features:

                • Receive notifications for overpayments, hidden fees, and low balances
                • An Automatic budget that’s built around your spending and income
                • Easily track debt and set new financial goals

                While Albert does offer a paid option, most of its core features are FREE. So, what better option to save?

                Available for: iOS

                8. Prism

                  Have you recently forgot to pay a bill because life got in the way? Prism automatically tracks your bills and syncs your bank accounts in one place.

                  Here are some of its main features:

                  • View all your account balances in one glance
                  • Bill due dates are automatically pulled and tracked
                  • Receive early reminders for upcoming bills

                  If your budget is on “fleek” but can’t seem to stay on top of your bills, Prism is your go-to app.

                  Available for: iOS, Android, Windows, Amazon

                  9. Mvelopes

                    Remember hearing about people using envelopes to budget their money? Well, Mvelopes is the new envelope system for this generation. Easily create monthly budgets and track your saving goals.

                    Here are some of its main features:

                    • Connect unlimited bank accounts
                    • Real-time budgeting with auto transaction syncing
                    • Low monthly $4 fee or $40 annual

                    Mvelopes can help you crush debt, save more, and help you stop overspending. With its low monthly fee, it’s worth a try.

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                    Available for: iOS and Android

                    10. Wallaby

                      Most people don’t have time to track their credit card’s changing rewards and interest rates. Because of this, you need help reaping the most of your credit card’s rewards. Wallaby is the app that will help you do just that.

                      Here are some of its main features:

                      • Automatic recommendations for the best credit card to use for each transaction
                      • A friendly user interface, displaying credit cards with their corresponding images
                      • Free to use

                      If you’re using the same credit card to make your purchases, you may be leaving money on the table. Give Wallaby a try if you’re ready to maximize your credit card’s rewards.

                      Available for: iOS and Android

                      Take control of your finances and experience financial freedom

                      Picture yourself staying on budget and saving more money than you’d ever imagined.

                      It took hard work and dedication but you’d finally learned how to manage your money. You have to start taking control of your spending and saving habits.

                      You now have a list of reliable apps that can help you build better money habits, what are you waiting for?

                      Featured photo credit: Pexels via pexels.com

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