Financial Freedom: Will Money Make You Happy in 2019?


Posted by John Loff / Dec 28, 2018 / 0 Comments / Posted in Finance and Psychology

Financial Freedom Will Money Make You Happy in 2019

Financial freedom is attained when you can settle your daily financial needs without any stress. The journey to financial freedom is accomplished when you become financially independent and in full control of your personal finance.

Adopt a Minimalism Saving Lifestyle Concept

Many people have attained this goal through a minimalism saving lifestyle concept, where you save as much as 80% of your income.

According to Natalie Bacon (@NatalieRBacon) a blogger who runs an online business full time: “A minimalist budget will give you clarity with your money by decluttering your finances and prioritizing your financial goals.”

 

Focus Areas

So, to achieve financial freedom and get happy in 2019, you need to gather just enough money by focusing on the following:

  • Have a proper financial plan;
  • Set your financial goals;
  • Invest in yourself;
  • Be keen on time;
  • Be positive about money and happiness;

How Much Money Will Make You Happy?

People are happy even without money, but happiest with cash. A published article on the analysis of Nature of Human Behavior showed that the emotional well-being of most people is optimally fine when earning at least $75,0000 over $60,000 annually. At this level of earning, these people have daily positive emotions and happiness.

However, researchers and financial experts point out that earning $95,000 annually is a higher figure but the most ideal for life evaluation. This includes taking into account peer comparisons, metrics on macro levels and long-term goals.

How Much is too Much?

According to Purdue University financial researchers and experts, the emotional well-being and the level of life satisfaction starts declining beyond the optimal mark of $95,000. This means too much wealth, beyond the required level for the purchasing power and the daily comfort, results in engaging in social comparisons that are unhealthy.

In this sense Alexa von Tobel (@alexavontobel), the founder and CEO of LearnVest.com, advices that “Money shouldn’t be worshipped and it shouldn’t be ignored.”

Philosophers have argued about this for millennia, yet everyone has a bearing that money can lift someone to greater heights of life.

Poor But Happy on one Hand

A person earning only $8,000 a year will struggle to afford food and clothing, and in some cases, they have no shelter. They find it hard to live off other people and are stressed to live as scavengers.

But just as Bellamy Shoffner (@hellobellamy), a writer and the founder of a digital magazine committed to exploring the intersection of parenthood and social-justice – Hold the Line mentioned: “Financial security is expected to be the natural result of hard work and persistent dedication to your chosen field. We feel confident that if we plan well and follow (most of) the rules we’ll have no problem providing for our children, giving them all of what they need and some of what they want.”

Rich But Unhappy on the Other Hand

On the other hand, a person earning $80,000 lives a worry-free life. They live a luxurious life. They can afford a car, travel for nice dinners, invest in savings among other things. But are they happy?

Money is a crucial factor to how we perceive ourselves, thus affecting our self-esteem feelings, security status, and control.

The Magic Money-Meter

Making much money in the 21st century is easy, and we came to a point when:

  • Money is a measure of business or our success
  • It helps in obtaining and maintaining our social status
  • It is a source of material wealth (clothes, houses cars)

The Never-Ending Pursuit

However, there are important limits to consider when making money in pursuit of happiness. Money has an optimal point that can lead to happiness and beyond which happiness is short-lived.

Ben Casnocha (@bencasnocha), an entrepreneur, investor and blogger at Casnocha.Com, and a best-selling author based in Silicon Valley noted that when it comes to pursuing happiness or meaning in a career, “Most entrepreneurs I know who are striving for big world-changing outcomes are not actually happy most days.”

How to be Happy no Matter You Are Rich or Poor?

It seems natural to assume that rich people are happier than others. Well, money is just a portion of the psychological wealth. The truth is that if you can afford food, shelter, and clothing, then an increase in disposable income will have an insignificant influence on the sense of your well-being.

Jason Butler (@jbthewealthman), a personal finance expert, member of the personal finance Society and Chartered Institute for Securities & Investment, advises that “if you have good health, do work that you enjoy and have a handful of close personal relationships, the chances are you will be thrilled indeed and live to a ripe old age.”

The Secret Recipy

Therefore a life richly and happily lived is rich in:

  • Good health, no injuries or illnesses
  • Financial Security, no worries on bills
  • Sound Relationships, with at least five close friends
  • Simplicity, with no unrealistic priorities
  • Generously helping others
  • Contentment both financially and psychologically

Experts Cited

Natalie Bacon Photo

 

Natalie Bacon (@NatalieRBacon) runs a successful blog while being obsessed with minimalist budgeting. Her goal is to help others achieve their dreams by inspiring them.

Alexa von Tobel Photo

 

Alexa von Tobel(@alexavontobel), is charming founder and CEO of LearnVest.com (@LearnVest), a resource that will help you achieve your money goals.

Bellamy Shoffner Photo

 

Bellamy Shoffer (@hellobellamy), a writer and the founder of a digital magazine committed to exploring the intersection of parenthood and social-justice – Hold the Line

Ben Casnocha Photo
Ben Casnocha (@bencasnocha), an entrepreneur, investor and blogger at Casnocha.Com, and a best-selling author based in Silicon Valley.
Jason Butler Photo
Jason Butler (@jbthewealthman), a personal finance expert, member of the personal finance Society and Chartered Institute for Securities & Investment.

Works Cited

Cash Cow Couple “We Achieved Financial Freedom in 5 Years. You Can Too” https://www.cashcowcouple.com/financial-freedom/

Oreilly “Your Money: The Missing Manual, Chapter 1” https://www.oreilly.com/library/view/your-moneys-the/9780596809430/ch01.html

Brian Tracy “7 Point Formula For Financial Freedom, Happiness, And Wealth” https://www.briantracy.com/blog/financial-success/7-point-formula-for-financial-freedom-personal-finance-make-more-money/

The Telegraph “Money really can buy happiness, say scientists” https://www.telegraph.co.uk/science/2017/07/24/money-really-can-buy-happiness-say-scientists/

Time “This Is the Amount of Money You Need to Be Happy, According to Research” http://time.com/money/5157625/ideal-income-study/

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