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The average person spends about 30% of their income on housing.
It’s difficult for most people to budget for their future because they don’t know how much money they will have in retirement, pay off debt, or save for the next rainy day.
Yet from Dan Ariely and other psychologists: “Happiness can be boiled down to our perception of what we have and what we didn't have."
This thread post will hopefully make you rethink your opinions about money and finances.
Keeping track of your finances can lead to increased happiness. Although this may seem counterintuitive, it's backed up by various psychological studies that show that people are happier when they feel like their life is in order.
The key is to have a plan.
People who live "paycheck to paycheck" have unsettled financial problems and usually feel like their life is out of control. And the person without a financial plan feels that way as well, even if they are earning more than the paycheck-to-paycheck crowd.
One of the main reasons that people are unhappy is they don't feel in control. They think about the future and their finances, but they don't do anything to prevent or plan for these things.
Take a friend, for example. Your friends may tell you that they are happy with their current financial situation and that they don't need to change something. But as soon as you ask them about their financial habits, you'll find out how unhappy they really are. They might even fill you in on ways to save money or get more through negotiating your salary.
When people have a plan, they feel more in control of their lives and are more happy with where they're at financially. It’s the same thing with working on debt.
It’s difficult for most people to budget for their future because they don’t know how much money they will have in retirement, pay off debt, or save for the next rainy day.
Yet from Dan Ariely and other psychologists: “Happiness can be boiled down to our perception of what we have and what we didn't have."
This thread post will hopefully make you rethink your opinions about money and finances.
Keeping track of your finances can lead to increased happiness. Although this may seem counterintuitive, it's backed up by various psychological studies that show that people are happier when they feel like their life is in order.
The key is to have a plan.
People who live "paycheck to paycheck" have unsettled financial problems and usually feel like their life is out of control. And the person without a financial plan feels that way as well, even if they are earning more than the paycheck-to-paycheck crowd.
One of the main reasons that people are unhappy is they don't feel in control. They think about the future and their finances, but they don't do anything to prevent or plan for these things.
Take a friend, for example. Your friends may tell you that they are happy with their current financial situation and that they don't need to change something. But as soon as you ask them about their financial habits, you'll find out how unhappy they really are. They might even fill you in on ways to save money or get more through negotiating your salary.
When people have a plan, they feel more in control of their lives and are more happy with where they're at financially. It’s the same thing with working on debt.
