7 Simple Tips To Budget Your Money For Your Happiness

Money can’t buy happiness? Well, yes and no.

Money can’t buy great friendships, self-esteem or a personal sense of fulfillment. However, if you are in complete control of where your money is going, you can consciously choose to direct your money towards experiences and investments that give you long-term fulfillment and personal happiness. Investing your money for more education, for example, may lead you towards your dream job. Or if cooking is your passion, spending more money on new ingredients and cool cooking equipment is totally worth it. Here are 7 simple tips to budget your money for more long-term happiness.

1. Know what experiences make you the happiest and most excited. If you know what experiences or lifestyle makes you the happiest, then it will be easier for you to be more discerning about where your money goes. For example, you may be willing to spend far less money on a so-so living space if traveling to lots of exotic countries makes you the happiest. Or you may be willing to spend less money on going out and dining out so your budget can include taking care of a cat or dog.

2. Have a small monthly fund for self-indulging and self-rewarding. Someone wise once said that one key to happiness is getting constant small treats. While it’s important to save money for retirement and for building your emergency fund, have a small monthly fund to really treat yourself to something fun–whether it’s a monthly back massage, an extra-fancy cafe drink or a rocking pair of new shoes. 

3. Give away some of your money. Giving truly is important for long-lasting happiness. Whether you want to donate to a different organization every month, or sign up to regularly donate a small monthly expense to sponsor a child in a third-world country, giving away some of your money will remind you about causes and needs bigger than yourself. 

4. Be completely confident about your control over your finances. Being the queen of your personal finances gives you a sense of competence, which raises your self-esteem and happiness. If you are unsure about where your money is going every month, start brushing up on your basic personal finance and budgeting skills. 

5. Keep your eye on the bigger picture. Know what the big goals are for your long-term happiness. Does your long-term happiness include raising a family? Going back to school for your dream career field? Having the money to start your own cafe? By being committed to the bigger picture, you will be less likely to spend recklessly on less important things.

6. Spend less money on stuff, and more money on something that will keep giving. Don’t get me wrong; spending money on a cute dress is fun. But spending money on cooking lessons or language skills or yoga class will benefit you with skills that will enrich you for a very long time, as opposed to simply giving you one-time gratification that fades away fast. 

7. Less is way more. A fancy dinner date can be downgraded to a cute outdoor picnic. Buying books to borrowing library books. Driving a lot to biking a lot. Working out at the gym to working out at home with your favorite T.V. shows. Chances are when you downgrade certain spending habits to the more cost-efficient version, your life will be enriched in unexpected, happier ways. 

PHOTO (cc): Flickr / Alan Cleaver