THE BROKEN WALLET

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What are the top money habits of financially happy people!!

One misconception is that you need a lot of money to be financially happy. But even though money can bring a certain amount of financial stability – and it can definitely alleviate some types of stress – it doesn’t always equal more happiness.

In fact, studies have shown that the connection between income and well-being is “surprisingly weak,” as observed by University of Michigan researcher Ronald Inglehart in a 16-nation study of 170,000 people.

But this doesn’t mean you can’t find your happy place.

1. Don’t measure success by bank account

Being financially happy means you’re not overly consumed with how much money you have or don’t have. You focus your mind and attention on other aspects of life. This can include your finances — but you aren’t obsessed over this. 

Success isn’t measured by how much you have in your bank account. There are plenty of people who consider themselves “successful,” yet they don’t have six or seven figures in their accounts. Their success comes from having a balanced view of all aspects of life.

2. Don’t spend impulsively

Impulsive buys may satisfy your immediate want for something. And it might even bring happiness in the moment.

This isn’t true happiness, though. So once the excitement of a purchase wears off, so does the joy of owning it. Financially happy people know this. Of course, this doesn’t mean that they don’t splurge or satisfy wants. Rather, they’re deliberate and intentional with their money. They realize the danger of buying impulsively. 

Impulsive buys can strain your bank account. And if you use credit to buy an item, and you don’t pay your balances in full, there’s the added stress of credit card debt.

3. Use credit responsibly

A good rule of thumb is to only use credit when necessary, and only if you’re able to control your spending.

Running up credit card debt creates another financial headache, so use credit responsibly. This can help you live within your means and you’ll avoid overextending yourself. 

If using a credit card, pay off the balance in full each month.

4. Plan for the unexpected

Unexpected events happen to everyone, but this shouldn’t deter financial happiness. 

With a good plan in place you can prepare for the unexpected. This can include having an emergency savings account — at least three to six months of living expenses. It’s also beneficial to eliminate unnecessary expenses. This can free up extra money in the event of a new challenge. The best time to plan for the unexpected is before something happens. 

5. Never stop learning about money

Financial literacy isn’t something that’s taught overnight. Information is constantly changing, and as the adage goes, “When you know better, you do better.” 

Equipping yourself with knowledge can help you save, budget, and invest your money wisely.  This, in turn, can help you achieve financial happiness.

Bottom Line: Don’t give up!

Getting on the path to financial happiness might seem like an insurmountable task — but you can do it!

It starts with a positive mindset, and changing some of your money and spending habits. This includes using credit responsibly, as well as planning for the unexpected. The effort pays off — but only if you stick to your plan.