They say that money is not everything in life, but the sooner we accept that money is absolutely vital for a happy life, the better off we will be. Today’s generation believes in living their life to the fullest, unlike previous generations that believed in saving for a rainy day. But in the quest to live life king size, you should not find yourself in a financial hole that is impossible to get out of.
Financial tips to boost happiness
By mastering the following financial tricks, you can pave the way for a happier life:
- Never buy on impulse. Impulse shopping is one of the main reasons why people overshoot their budgets month after month, only to realize that they don’t really need most of the things they buy. Therefore, the next time you see something that you simply must have, give yourself at least two days to think about it. Chances are you will never come back for that product and will never miss owning it.
- Be extremely conservative with loans. While it is acceptable to take a loan for major purchases such as a house or a car, it is not really necessary to take loans for a holiday abroad, home renovations, or for buying expensive furniture! Make it a point that you will only indulge in such spending if you have the money to do so, but will never take loans for such expenses.
- Swap larger expenses for plenty of smaller ones. Since it is not possible to be happy simply saving money and not spending it, you should try to do away with bigger expenses so that you can indulge yourself more often. For example, if you really do not need that second car, you can indulge in some retail therapy at your favorite clothes or accessory store instead. Your shopping spree will leave you feeling great and you will have spent considerably lesser money to achieve that feeling. Similarly, instead of spending thousands of dollars on an exotic holiday to a foreign destination, why not go out for movies and dinners more?
- If you can put away at least 25% of your income into investments or an emergency fund, you will realize that you don’t really miss spending that money but are far happier in the knowledge that you have some kind of nest egg.
With the help of the above financial tricks, you can lead an extremely happy life without falling into the debt trap.
Esther is a journalist and blogger who regularly blogs on issues to do with small businesses. In her writing she covers everything from advertising to marketing and from contractor tax to umbrella companies.