Money Makes Happiness but only indirectly….

Wealth is a tool that gives you choices, but it cannot compensate for a life worth living. — Oprah Winfrey

We live in a world of never enough. We cannot consume fast enough; we are never contented with what we have. We are forever chasing the fleeting and un-trappable spirit of happiness, pleasure, and lifestyle. The belief that “money can fix everything” keeps us striving for more wealth.

Money is sexy because it can buy a lifestyle. Most of us want to travel, and we want free time. We want the money lifestyle. 42% of the goals set are money-related goals. We want to buy the right to be us. We project onto money as the panacea to allay all our shortcomings and lead us to ultimate happiness.

Money can buy time and allow us to be our true selves and pursue our dreams, but happiness will not last long if you are a bore.

What makes money cool is not the amount you got but the way you spend it—your creativity. Let us redefine success. Is it a million-dollar bank account, cars, boats, or people who come with you on those boats, cars, and houses?

Money does not equate to the richness in life. Success and failure are not determined by the volume of money flowing into your life; it’s not dependent on the recognition you’re seeking. Your success should not be decided by someone’s interpretation or other judgment of you to be successful. The only evidence is whether or not you did what you intended or attempted to do.

Money means you got your stuff together, and you are good at what you do. It is supposed to be representational of your inner world to some extent. It is the dreams and the journey of pursuit that makes you have a Rich life, not Money. Money is only worth chasing if the money has some purpose. Always remember, in the end, that your family will be emotionally there for you, not fame or money.

Before someone runs up my chest, let me level set by saying that we need money to survive. Also, among the top 10 reasons for couples fighting, money ranks the highest. Many marriage and divorce lawyers can attest to these.

1. Money,
2. Lacking time,
3. Stress,
4. Not listening,
5. Taking for granted,
6. Teasing in public,
7. Window shopping girls,
8. Not buying gifts,
9. Being late,
10. Forgetting dates, e.g., birthday.

Frugal is not a popular theme, but it is the right way.

The hype to buy disposable things with so-called disposable income keeps people on the treadmill for the inevitable upgrade. Consumerism destroys the earth, individual lives, and your peace of mind. Being frugal neatly sidesteps some of the worst effects of this pressure. Pay attention to having an excess of your ability to consume it, e.g., my mother told me many times, “I can only sleep in one bed and use one toothbrush at any given moment.”

It is about being happy with what you have, i.e., having a high joy-to-stuff ratio. Do not be materially rich and spiritually poor. This is why we see celebrities committing suicide because they are not happy. Would you continue to buy status symbols objects if you were financially satisfied? The top four (4) happiest counties are certainly not the most materially wealthy. A decade ago, Nigeria was the leader, followed by Mexico, Venezuela, then El Salvador.

The annual World Happiness Report 2020. For the third year in a row, Finland has placed at the top of the list as the happiest country globally, with Denmark coming in second, followed by Switzerland, which pushed Norway out of the top three this year. These candidates are not materially focused but focused on the following:

1. 1. Experience the relaxation of the forest.
   2. Start your day with a cold shower.
   3. Make sense of the world by reading a book.
   4. Bake a cinnamon bun.
   5. Enjoy art online.

Money makes us independent, but too much independence is the root of unhappiness.  See part1 that describes social interaction is the greatest source of happiness. On the flip side, when there is too little money, there is suffering. We must find the balance and walk this tight rope of life, not falling to the left or right with materials or dependencies.

Success is getting what you want, and happiness is wanting what you got. If you believe “more is better,” you will never be satisfied with what you have. Catching a rabbit never makes us happy (ok, maybe for a minute), but chasing a rabbit that is worth chasing makes life worth living.

Financial goals do not lead to happiness; they are just necessary. Many studies show that USD 74K is about the peak on the happiness curve. Too much or too little presents its own problems. If you are aspiring, then do not let my writing stop you striving but do so, knowing that happiness depends on helping others and personally growing. After $75K, you will not necessarily get happier.

We need to grow, be healthy, and spend time loving and enjoying people we love. We need to be rich, have enough money to not worry about money, and do work that we enjoy. Money creates the illusion of happiness. We project onto money the capacity to fulfill our fantasies and dispel fears. What money can do is buy time, more time with people we love. Our loved ones can soothe our pain and send us to new heights of happiness.

P.S

Money cannot buy loyalty. Social loyalty has great value. Your reputation is more important than money. Time is worth at least 3 times more than Money, so if you can buy time, that is a bargain. Live your life buying time and not selling time.

Tactical Actions to Balance Money and Emotions

For many people, the concept of financial independence implies an endless supply of money. That is a fantasy. But having enough is a realistic goal. If we do not have enough money, there will be suffering, and in suffering, there cannot be happiness.

Money does have power but do not fear it; respect it. Fear of money keeps us stuck from taking the bold steps needed to become financially independent. Here are a few milestones to help get unstuck, reduce financial suffering, and increase happiness.

ASK TO GET PAID

Sadly, we are never taken care of without asking; it is just how life works. Many times, we do great work expecting that we will get compensated, but it never comes. A satisfied client should reward you, but this does not happen automatically. Money is a respectful gesture that needs to be agreed up upfront. A great deal is when the goods are delivered, money is exchanged, and everyone is still smiling. Also, plan your budget with taxes in mind. How much money do you need pre-tax and after-tax profit?

PLANNED SPENDING

Financial Intelligence is learning how to spend your money. Buy when items are off-season or discounted. Planning tells us when our dreams are affordable and attainable. I will buy it if you can make me save money—comparison shop, not just for price, but for quality. Buy second-hand or thrift stores for great buys.

INVEST IN YOURSELF

Knowledge is money. Read and learn new ideas to make money. Here is my reading list I used to lift my financial Intelligence. Find new recipes to make money. Money is a small price to pay for personal growth. Invest in your potential, not money. The returns are thousand-fold. Remember, though, knowledge is not power. It is potential power, but massive action on the knowledge is power.

PUT YOUR CAPITAL TO WORK

How long can I keep my money, and it works for me? There are 2 ways to have money work for me when I am not working for money. The first is to rent it out or make a loan, and the second is to have it appreciated by investing it. In both cases, money is a function of time.

Piggy Bank money is lazy money doing nothing (so invest it). It takes time for money to grow. Dollar-cost averaging is defined as making steady deposits on an investment. It is a good first step to put the money into an interest-paying account or buy some stock that yields dividends. The best time to start is yesterday. The second-best time is today.  https://www.stashinvest.com/ allows fractional shares, so you can buy $5 (a coffee per week) worth of Amazon stock if you cannot afford full shares.

What is your monthly expenses/ savings ratio?

FACT: if you start at age 22 and investing 350 USD monthly, you will have over a million dollars by age 55 due to compounding.  I personally invest using etrade, and they have been wonderful. When many sites crashed, this site has executed my trades with heavy market traffic. If you sign up using this link, you can open a brokerage account with a special offer. Sign up today and get up to $2,500.

If your company has a 401K + an employee match, do the max match you can. Take advantage of free money.

MEASURE YOUR SURVIVAL RATE

You will need 5% per year of your retirement savings. e.g., a simplified example is if your savings is $20 at retirement, then your annual expenses will need to be $1. If so, then you have enough to retire. Your monthly expenses are $1/12 months, about 9 cents per month at retirement. Think about inflation as you predict your future retirement expenses.

FOLLOW YOUR CRUSADE

Find a cause, something you follow despite the money. You will feel 1000% better. It is all about your purpose, NOT money. Like most people, you probably believe that what you do for money has little to do with who you really are. It’s just a way to pay the bills.

Less debt and a larger nest egg will give you a greater ability to pursue happiness untethered to questions about finances. Morality is one driver that places purpose over money. Evaluate your money in terms of its relationship to your deep beliefs and goals. Do they add to or subtract from them?

Sharing money gives more into the world. People do not remember how much you earned, but they remember how much you gave, and it is not limited to money but more importantly, your time and energy. Unless you are thinking about helping others somewhere along the line, you will keep striving for more, and you will never find enough.

Summary

greatness is not found in possession, power, position, or prestige.  it is discovered in goodness, humility, service, and character. – William Arthur Ward

if you have not,  read part 1 – the secret that brings the greatest happiness

read part 2 – personal mastery

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