5 ways to a happier (financial) life

By Jonathan Clements

Read?  5 ways to a happier (financial) life


 Best way to spend money: Experiences


I believe money can buy happiness, but you have to spend with care. My advice: Use your spare cash for experiences, not possessions. Pay for the family vacation. Go to a concert. Head out to dinner with friends. 

This will strike many as counterintuitive. Possessions seem appealing, because they have lasting value, while experiences leave us with nothing tangible. 

But this is also the reason experiences can bring more happiness: We have not only the event itself, but also the anticipation before and the fond memories after—and those memories aren’t soiled by the messy reality of some object that gets dirty, breaks down and is eventually discarded.


Top financial goal: Not working for money
 
Unless you have enough saved for retirement, you need an income. 

But if possible, never work just for a paycheck. I believe the keys to a fulfilling life are spending our days doing what we’re passionate about and our evenings with friends and family.

Problem is, the career that makes us happy in our 20s may not be satisfying in our 40s—and the new career we want to pursue may not be as lucrative. What to do? 

Avoid the acquisition treadmill of bigger homes and better cars, and instead save like crazy in your 20s and 30s. Do that, and you could buy yourself the freedom to spend the rest of your life on your terms, rather than one dictated by car leases, credit-card bills and mortgage payments.