One of the keys to our success is learning to use our money efficiently to build a life we love. As with all other tools in our personal development box, such as habits, goals, and mindset, our finances can also be used in our favor to boost our level of happiness.
Financial expert Suze Orman states that three common emotions revolve around our finances: fear, shame, and anger.
Many of us work tirelessly for our hard-earned money; shouldn’t happiness make it to the list more often?
Here are 6 powerful ways to boost your happiness with money:
1. Invest In Yourself
In almost every article I’ve ever written about personal finance, investing in yourself is one of the fundamentals we must instill. Putting money away for your future is critical before we can talk about spending money on anything else.
Investing in yourself is crucial to the groundwork of your financial well-being.
What does this look like in the finance world?
- You build yourself an emergency fund. This money habit will provide you peace of mind, and that feeling is priceless! Emergencies happen all the time, and the best way to prepare is to have your emergency fund in place to protect yourself.
- You designate an investment account for the future. As much as we want to skip to the good stuff like travel or a new outfit, focus on the big picture. This means paying yourself today so you don’t have to worry about your finances in the future.
When we invest, there is also the beauty of compound interest. Compound interest is the interest you earn on top of the interest you have gained from the principal amount of money.
Example: I invest $100. I earn a 6 % return for the year, which gives me $106. In year 2, I now earn interest on $106. It may not seem like a lot initially, but it will make a big difference in your financial well-being as time goes on.
2. Give To Others
This past weekend after brunch, while our bellies were full, my fiancé and I were making our way home. We walked by a man shaking an empty Mcdonald’s soda cup. While we never ante up money, because I don’t particularly like that I don’t know where it’s going, we often try to give what we can, when we can.
We made our way into Whole Foods and came out with a turkey sandwich, exchanged smiles, and went on our way. Remember, it only takes a few minutes to change someone’s life.
Touching the lives of others doesn’t need to be as complicated as we make it out to be. Even offering to buy a hot cup of coffee for someone can make the world a better place.
We don’t have to give a lot, but if we have the means to, then, by all means, we should make an effort to. Compassion and empathy are good for the soul.
3. Travel Or Plan An Experience That Brings You Joy
Let me begin by saying that travel is good for the soul. Sometimes, we all need to escape the mundane redundancies of life, and stepping outside the norm can do our minds and bodies good.
Using your hard-earned money on experiences changes you.
The feelings and memories you obtain from travel or enduring experiences will bring you joy long after the experience is had.
Think of it from a long-term perspective when deciding between making a purchase or using your money to experience something new. The expensive handbag may come and go but renting an Airbnb with your friends can bring you long-lasting memories and happiness.
Related: What Travel Does For The Mind
4. Combine Your Spending With Socializing
Speaking of experiences, when you book something fun for yourself to enjoy, ask a couple of friends to join you. For example, bring a girlfriend or two with you if you’re using your money to check out the newest museum opening or plan to do a fun activity such as Paint and Sip.
Combining experiences with socializing will give you an even greater bang for your buck. It’s easier to spend money on something “extra” if you benefit from the socializing that can complement the activity.
While you might not feel comfortable spending $35 on a yoga class or pedicure, it will be worth the extra money you have spent if you invite a friend with you.
5. Enjoy Little Purchases
While most of us look forward to the big purchases, such as decorating the living room or purchasing a new vehicle, learn to take great pleasure in simple little purchases. Little pleasures such as warm fuzzy socks or a new makeup brush can bring a lot of joy into your life if you learn to focus on them.
These small items we use daily can often bring us as much joy as more expensive ones.
The key is to take nothing for granted, no matter how small it is or what it costs.
As a writer, a new gel pen can even do the trick. Although it’s only a three-dollar pen, it’s something I use every day that I absolutely love. Remember, it’s all about your perspective on the purchase.
6. Take Care Of Yourself
Self-care can be pretty costly; I get it. I have done my fair share of physical therapy and doctor’s appointments to know that getting help for ourselves can be rather pricey. Yet, giving ourselves the attention our minds and bodies need will pay us back in dividends. When you take the time to get the help you need, it can help with your quality of life.
Although looking and feeling your best can be expensive, if it is important to you, find a way to make it come together for yourself.
For example, if you’ve wanted to get your teeth whitened but opted out because it’s too expensive, skip out on another purchase this month. Or, pick up a couple of extra side gigs. Don’t be afraid to invest in yourself, especially when it’s part of the spending plan.
Getting my hair highlighted a couple of times a year can add up, but it also helps to give me the confidence I need to feel my best.
Related: 7 Healthy Money Habits You Need To Start Today
Remember, the most important thing is to put away money for your future self. Take advantage of compound interest. Once you have your emergency fund in place and are putting money away for your future, it’s time to build a positive mindset around money and do the things you love.
Related: 12 Useful Ways To Boost Your Financial Wellness Before Year-End