Your Money_ The Missing Manual - J. D. Roth [10]
Psychologists generally agree that a life well-lived is rich in:
Security. It's hard to be happy when you're constantly worrying about how to pay the bills. If you have money, you don't have to worry about those things. (But, as you now know, you don't have to be rich to be happy.) By living below your means and avoiding debt, you can gain some financial control over your life.
Relationships. True wealth comes from relationships, not from dollars and cents. Wealthy or poor, people with five or more close friends are more apt to describe themselves as happy than those with fewer. A long-term, loving partnership goes hand in hand with this. And as you'll learn later (Social Capital), social capital can be worth as much as financial capital.
Experiences. As explained in the Note on How Money Affects Happiness, memories tend to grow more positive with time, but Stuff usually drops in value—both actual value and perceived value. As Gregory Karp writes in The 1-2-3 Money Plan (FT Press, 2009), "Experiences appreciate, assets depreciate." And in Your Money and Your Brain (Simon & Schuster, 2008), Jason Zweig notes, "Doing and being are better than having."
Remember these three pillars of happiness and you can build a rich life even on a limited income.
To further improve your relationship with money, keep these guidelines in mind:
Prioritize. Spend on the things that make you happiest. There's nothing wrong with buying things you'll use and enjoy—that's the purpose of money. If you're spending less than you earn, meeting your needs, and saving for the future, you can afford things that make life easier and more enjoyable. (For another way to prioritize, see the box on Living a Rich Life.)
Stay healthy. There's a strong tie between health and happiness. Anyone who's experienced a prolonged injury or illness knows just how emotionally—and financially—devastating it can be. Eat right, exercise, and get enough sleep (Your Body: The Missing Manual has loads of tips on how to do all those things).
Don't compare yourself to others. Financially, psychologically, and socially, keeping up with the Joneses is a trap. You'll always have friends who are wealthier and more successful in their careers than you. Focus on your own life and goals.
Limit media exposure. Mass media—especially TV—tries to persuade you that happiness depends on things you don't really need and can't afford. Studies have found that watching lots of TV can influence your levels of materialism—how much you think you need to be happy.
Simplify. The average Joe believes that materialism is the path to happiness—but the average Joe is wrong. Research shows that materialism actually leads to unhappiness and dissatisfaction. By simplifying your life and reducing the amount of Stuff you own (or want to own), you'll save money and be happier.
Help others. Altruism is one of the best ways to boost your happiness. It may seem counter-intuitive (and maybe even a little self-serving), but donating to your church or favorite charity is a proven method for brightening your day.
Embrace routine. Emerson wrote, "A foolish consistency is the hobgoblin of little minds," but there's evidence that some consistency is conducive to contentment. In Happier (McGraw-Hill, 2007), Tal Ben-Shahar recommends building routines around the things you love: reading, walking, gaming, knitting, whatever. Because it can be difficult to make the time for these activities, he argues that we should make rituals out of them. If you enjoy biking, make a ritual out of riding to the park every evening, for example. (See the box below for tips on finding time for what you love.)
Pursue meaningful goals. As you'll learn in the next chapter, the road to wealth is paved with goals, and the same is true of the road to happiness. But for a goal to be worthwhile, it has to be related to your values and interests—it has to add something