Yeah, yeah, I know all too well that money isn’t the ultimate source of true happiness, but I tell you, having financial security and knowing that I’m making smart choices about my money sure do provide a nice warm feeling. Sadly, money has become a huge source of stress for most people and is now the number one cause of divorce, of health problems, and of unhappiness.
If this is the case for you, you can change it if you decide to, and I believe you’ll find it well worth the effort. Here are three straightforward yet very powerful steps to get you started.
Save 15-20% of your income Are you living at or above your means right now, spending all or more than you make? If you are, you’re not alone. In the United States, about half of all families live at or above their means. Stop for a moment and think about what it would mean to your quality of life, to have less stress and more options now open to you by saving 15-20% of your income instead of spending it all and more. The difference in your finances can be dramatic, especially if you are currently in debt. When you live below your means you will find your financial pressures decrease, you will experience a growing sense of accomplishment as you make progress towards your financial goals, you’ll feel a sense of being in control of your life, and dramatically increase your options.
Saving 15-20% is very achievable for most people. As to how to do it, just go the Spend Smart and Save More advice section on my website and start reading. All that you need is right there and you’ll be surprised how easy it is once you make a commitment to do it.
Simplify your life Simplicity of life is a powerful and wonderful thing. Yes, it will noticeably improve your finances, and by a lot, but it’s so much more than that. What you’ll discover is that less is truly more, and that your daily life has become a lot more pleasant. Personally, I didn’t figure this out until I was in my 50s. In the 20 or so years since then I’ve done a good job of keeping my daily life as simple as I can and I have to tell you it’s a wonderful way to live. No way would I return to owning all the things I used to own, doing all the things I used to do, things that that I did out of habit or because it was expected of me, and so on. So try it. Discover the wonderful world that comes from simplifying. If and when you do, you’re gonna love it.
Understand that doing is better than owning Think about all the things you spent your money on in the past. How much pleasure did you get from each of those expenditures and how long did it last? What you’ll see is that that the happiness you get from the things you own pales in comparison to the things you do. The pleasure you get from most purchases is gone very quickly, while the pleasure from what you do is usually not only bigger, it lasts for years or even for a lifetime. How many purchases can make that claim? So spend time with those you care about, do the things you want to do, take that special trip, experience that special adventure. I have, and I can tell you it has been so worth it.
So there you are; three powerful steps. Take them and you’ll find that money can indeed add to your happiness. So be a good friend to yourself and see to it that it does.