Don’t you just love the summer? We are lucky to live in a country that has so many fun things to do and so many destinations to experience. I hope you are taking the time to appreciate the season and relax. Summer is a time to let go of the daily grind and stress and enjoy the beauty of the country.
Unfortunately, far too often we don’t just let go and enjoy, and far too often financial stress is the culprit. Time and again, the vacations we plan and the things we buy bring only fleeting happiness when we spend beyond what is reasonable for us. The happiness of the moment is quickly overshadowed by the added financial stress we’ve now created.
It doesn’t have to be that way, provided you are realistic about your money and thoughtful about the way you spend it.
Live the life you can afford. 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 the upside of not spending 15% of your income and living below your means. The difference in your finances can be dramatic, especially if you are currently in debt. When you live below your means your financial pressures decrease, you will experience a growing sense of accomplishment as you make progress towards your financial goals, feel a sense of being in control of your life, and have a huge increase in your options.
Don’t let advertisers control you. Don’t let anyone convince you to spend your money where you didn’t intend to. Unless you have unlimited money, you need to insure that your spending is based on your own priorities, and not somebody else’s. Do not let advertisers control you. If you find yourself wanting to make a purchase that is not already one of your priorities, consider it a red flag. Think about what other things, your existing priorities, you would have to skip or postpone in order to get it. Are you saving for a vacation? How does buying the new shoes or gadget effect those plans? Always sleep on it when something you don’t need tempts you. Remind yourself that money should bring you happiness not stress. Make purchases that will enrich your life—and only you can make that decision, not a marketing campaign.
Be realistic about your money. I am not suggesting that you don’t try to make more money or that you live like a pauper. I’m just asking you to recognize which spending will really end up adding to your happiness in the long run, and which will not. I’m asking you to be smart and reflective about your spending choices. If you do that and spend your money wisely, money will add to your life rather than subtract from it. If you make a lot more money in the future that’s great, but spend wisely now within the context of the income you actually have. This is a choice and a habit that will bring you happiness now and in the long run.
Money can bring you happiness if you make the right choices. But when you can’t really afford what you are buying, the momentary enjoyment is quickly gone, overwhelmed by the added money-stress that follows. So use your common sense so you can make money smart choices that will truly add to your happiness.
Money Smart provides more ideas for saving money and making sure that your money is a source of happiness in your life.