How to Be Happy with the Money You Have

Ever wondered why billionaires don’t seem 1000x happier than millionaires? If you believe money doesn’t make you happy, this won’t surprise you at all, of course. But studies show that money does make you happy — it’s just that more money doesn’t always translate to more happy. Whether you have an ultra-high net worth, or a relatively low one, it’s worth learning to be happy with what you have. Here’s how.

Minimize Money Stress

Anyone who says “more money, more problems” can seem to be mocking you if you’re struggling to get by. But it’s true that you can have a lot of money and a lot of stress or a little money and relatively low stress.

Your stress around money can be more linked to things like your debt to income ratio, your monthly expenses, your income security and your personal values, rather than your actual income or net worth. A significant amount of high income households still live pay check to pay check while some low income households are living happily below their means.

You can minimize stress by improving your financial literacy and learning to manage what money you do have well. Financial education is priceless, and can mean you’re living with less stress on a low budget than those with a high income whose personal finances are out of control.

Deal with Debt

This is linked to the above point. Stress over money is often stress over debt, or more specifically a feeling of being out of control of your finances because of debt. Most of us carry some debt, and eliminating it overnight isn’t an option, but you don’t have to.

You’ll gain control over your debt by putting in place a solid plan to pay it off, even if that’s a five-year, 10-year, or 20-year plan. And you’ll feel happier knowing exactly how you’re going to get from where you are now to where you need to be.

Putting a plan in place might involve consolidating or moving debt, finding lower interest rates, or ring fencing future one-off payments (like a bonus or previously locked-in investment about to pay out) to go fully or partially towards debt repayment. It doesn’t really matter what the plan is, as long as you’re happy with it.

Earn Your Own Money

This may seem like an obvious one, but earning money makes you happy. Specifically, there’s evidence that earned money actually makes you happier than inherited money. Maybe this explains why the billionaires aren’t always happy. An awful lot of them inherited their wealth. They may have never really experienced the satisfaction of earning their own money.

It’s very easy however, to forget to truly enjoy the money we earn. That’s another reason to set a budget and make a plan to pay off debt. You’ll be more satisfied with your pay check when you’ve given each dollar a job, know what you can afford, and feel secure in the sustainability of your debt repayment plan. Then you can enjoy your money. We’ll cover that next.

Don’t Forget Your Fun Money

If you’re on a tight budget it’s easy to forget to include fun money in your budget. But living a fun-free life is not desirable or sustainable. It’s fine (and important) to budget for some fun to ensure some of the money you earn really is making you happy.

I used to know someone who was on a pretty low income, who justified fun money by always trying to get a full day’s fun out of an hour’s worth of pay. Not easy, but an interesting game to play. They took their $10 or sometimes $15 an hour and found a way to have a day out on it. It invariably involved things like national parks, free or very-low-cost attractions, picnics, barbecues, or special deals. Get creative. Just don’t miss out on fun completely.

Compare Carefully

A recent study found that almost a third of Americans have money dysmorphia. That is, they believe in a distorted version of reality whereby everyone else is doing much better than them financially. This is an age-old phenomenon, but definitely made worse by modern day technology and the ability to constantly compare your own life with the highlight reel that your acquaintances post online.

Being happy with what you have is easier when you’re not comparing it to what everyone else has. Try to stay off social media as much as possible, and be very aware of the distorted reality it can present you with when you’re on there.

Even better, use comparison to your advantage by volunteering for an organisation that helps those who are worse off than you. Volunteers tend to be happier and healthier, not only because giving in general tends to improve happiness, but also because being around those less fortunate can make you re-assess your own life and appreciate it more.

Money doesn’t necessarily buy happiness, but stress and concern around money can certainly leech the happiness out of your life, so learning to be happy with the money you have is a skill worth cultivating.

Karen Banes is a freelance writer specializing in entrepreneurship, parenting and lifestyle. She writes articles, website content, ebooks and the occasional award winning short story. Her work has appeared in a range of publications both online and off, including The Washington Post, Life Info Magazine, Transitions Abroad, Brave New Traveler, Natural Parenting Group, and Copia Magazine. Learn More About Karen