My dear Friends,

Did you know March the 20th was World Happiness Day-so let’s chat about financial happiness?

Does this idea of happiness in combination with happiness make you cringe? It makes me cringe a bit. We tend to have this uncomfortable feeling because we grew up being told by our parents that money and happiness are unrelated. Respectively we grew up listening to the”Money can`t buy you happiness” mantra. There is some truth to it as much as it is incorrect.

The richest people in this world are not necessarily the happiest, and vice versa. But let’s face it would you be happier without money? Probably not, because your life would be an endless worry of how to make ends meet. I have serious doubts that this would make you happy. Money “fixes problems,” and this is a fact! A life without purpose, however, would make you equally unhappy despite owning great wealth.

So what is financial happiness all about?

And what has self-care to do with it?

Financial happiness is self-care

Let´s face the truth, we all would be happier if money did not exist. Because we would not need money to fix things, nor would we have any desire to own anything. However, it would be a completely different world from what we are used to. So let’s not waste any thoughts on this idea.

We do live in a world where money plays a major role in being able to live a full life. To think otherwise would be foolish or part of an unrealistic ideology.

Being content or satisfied is the key to living a full life. Isn`t this something we all strive for? Our decisions are usually influenced by the things and events we know will feed our needs, emotions and souls. However, deciding without actually being able to bring this decision to fruition does not bring us happiness but plenty of frustration. Having the funds to implement a decision brings us happiness.

Now here is the bitter pill in most cases, the implementation will cost money. Yet, we were raised with the idea that money does not lead to happiness. Were we told a lie? Probably yes! Due to education and our social bubble, we have this totally twisted attitude to money and happiness.

The truth is we pursue more money so that the things we want, and need, are within reach. After all, how much money we have impacts how and where we live.

So, let’s be truthful with ourselves when we struggle to finance all our expenses; we feel down or even depressed; however, if we have the funds to lead a life without worries, we are happy.  

But, to make it quite clear, it is not money that makes us happy but what we can do with money. It buys us freedom and enables self-reliance, confidence and general well-being.

A close relationship

Financial happiness is a state of mind. It comes from knowing you have the money to purchase the things that will make your life easier and better.  Generally, the key to feeling content with your personal financial situation is to focus on what is important to you and act accordingly.

I know it’s easier said than done. Who decides what is important and what is not? Strictly speaking, it is a personal choice and should be determined by the state of your personal finances. However, one thing is certain; it is not important to own something only to be accepted in a peer group or to impress others. And it will not make you happy either!

“We buy things we don’t need, with money we don’t have, to impress people we don’t like”

Dave Ramsey; Author, radio Show host, personal finance expert

With a sustainable plan for your personal finances, money is a resource that can help boost how you feel. When you spend money in the wrong ways or the wrong areas of your life, it will not promote the life you seek. It could make you insatiable for more until enough is never enough. A sure path to unhappiness. Alternatively, you pile up debt; this will make you equally unhappy.  

Here is a piece of advice from the school of life: from time to time, focus on what you already have-his will make you happy.

So ultimately, it is how you think about and manage money that contributes to your happiness. Personal finance is always self-care. A study found when people are happy with the state of their finances; they also tend to be happy with their overall lives. The very same study found that, in general, women feel less satisfied with their financial situation and are, therefore, more stressed and less happy.

Self-Care for Financial Happiness

Practising some financial self-care leads to happiness. When you know why you should be doing it, promise you will feel more satisfied – regardless of how much you own. Start by breaking free of the obsession with having more and more. Being uber-rich is not a prerequisite to happiness, but your attitude is.

#1 Mindfulness

This is about being present and honest with yourself and developing strategies that translate directly to financial well-being.

• Make sure you are present for every one of your financial decisions. This might mean thinking twice before you make an impulse purchase online, but it also may involve reevaluating your ongoing budget. 
• Being mindful encourages you to trust your own thoughts, including what you think makes you successful.
• Take one step at a time, be mindful of how you attack your goals, and focus on your current steps.

#2 Fitness

Having a regular basis or having a financial routine gives us satisfaction, and we feel happy. When you consciously open, read, and file away your bills and statements, you are connecting with your money and taking control of your life.

• Set aside time each month/week to sort out your finances. Stick to your routine and do not find excuses.
• Get organized; that makes it infinitely easier to give yourself the financial health screenings
• Keep a financial journal; track your progress; it will help you see your achievements

#3 Meditation

Taking a half hour in the morning to clear your mind and reset for the day can help you focus on what lies ahead. Set aside a few minutes every day to focus on your finances. This can have the same positive result.

• Develop a fear-conquering mantra. Like, “I have made the right investment decision, I am successful and powerful and long term, I will have positive results”. Times a rough at the moment, and we need to conquer our fears to stay level-headed.
• Take the time to get closer and pay attention to every “penny” you spend. Homing in on the smallest parts of your finances can help you gain perspective.

#4 Holistic

Self-Care is about finding the right balance for mind, body and soul– find the right balance for your finances.

• Money is not the only capital you have-your identity, skills, and knowledge are your most valuable capital; your finances are just one part of your overall worth.
• Know when to say “NO”! Set boundaries. Even if you have money to spare for relatives or friends who ask you for funds, consider it a loan, not a handout. You are not a bank.
• There are some things you may not be able to change about yourself. If you have trouble changing your financial practices, accept yourself while you work toward a solution.
• Life is complex, and the only way to sort through the confusing maze is to utilize experts. However, remember: You are the president of your personal corporation, and your advisors are on your board of directors.
• Learn about financial matters. This will help you make better decisions and identify when you are being misled. Professional advisors are often better able to help those clients who have taken the time to educate themselves.
• Choose to see the good in everyone, everything and yourself. You may have to look hard for it. But choose to like yourself, others around you, and the wonderful blessings that fill the world. A positive attitude creates a state of mind for success and overall health.

Up-Skill

We have been brought up to believe that money and happiness are not connected. Due to education and our social bubble, we have this totally twisted attitude to money and happiness.

Being content or satisfied is the key to living a full life. Our decisions are influenced by the things and events we know will feed our needs, emotions and souls. 

The truth is we pursue more money so that the things we want, and need, are within reach. After all, how much money we have impacts how and where we live.

Money does not make us happy, but what we can do with money does.

Ultimately, it is how you think about and manage money that contributes to your happiness. So, practising financial self-care makes us happy.

SOURCE: United Nations; National Debt Relief; Bloomberg; Chatelaine; Psychology Today; Harvard Study of Adult Development; Robert Waldinger; Marc Schulz; Stanford University; Forbes; Business Insider; The Atlantic; The Happiness Index; The Guardian