October 11, 2011
Save Money, Be Happy
Talk about win-win: turns out, saving money can actually make you happier. Research shows people are saving more of their income – and smiling all the way to the bank.
What’s the connection?
“I find my happiest clients are the ones who came from nothing and truly appreciate and respect their money,” says author, financial advisor and radio host Nicole Middendorf. It’s about distinguishing “wants” from “needs” and having goals (like retirement) to save for so you’re less likely to spend frivolously, she explains.
A Boston Consulting Group study found the recession reverted people to a “back-to-basics” attitude about finance that focuses more on family and less on luxury. Though people are spending “less than they have in decades,” spending it
on experiences, like family trips and girlfriend getaways, will make you less likely to regret the purchase later.
Plus, it turns out the "money equals happiness" adage is a myth, according to the International Review of Economics. Their study shows general consumer purchases – from personal care to vehicles – did little or nothing to improve the person’s happiness.
Some believe the best way to experience budgeting bliss is to get your family involved through activities like electricity-free family time. Hanging with frugal friends and having a support group can help you stay on track. Other frugal habits like collecting coupons are gaining popularity – especially with shows like ”Extreme Couponing.”
Bonus PINK Link: Serious about saving? Start here.
By Brittani Banks
"Happiness is making the most of what you have." Rosamunde Pilcher
Visit littlepinkbook.com for more...
*Supporting images from FreeDigitalPhotos.net, creativedoxfoto, photostock, and Grant Cochrane