HOW TO BE HAPPY KEY #6

Spend on Needs Not Wants :

Especially after the past year, it would be fair to say that almost every American is concerned or preoccupied with money and finances, in one way or another. As with any problem or conflict, it’s not necessarily identifying the issue or problem but more so how the individual or group of individuals plans on finding a solution to that issue, problem, or conflict. Money is such a sensitive subject for so many people because, frankly, most people live paycheck-to-paycheck to pay their monthly bills and other expenditures while others make more and spend more as a result.

Most of the problems individuals have with money are those they have created through their decisions on how to spend. As the saying goes, it’s not how much money you make but how much you save that matters. Furthermore, what you save is determined by how you live your life and how you utilize the financial resources you have access to.

If money is an issue, or even if you want to save more money, you must learn to live by, and not beyond, your means. This translates into you spending money on what you need and not so much on what you want. Since our society has become so materialized, many would argue that wants and needs are the same. This is not true. Wants are luxuries—new cars, the finest clothes, fancy dinners and parties. Needs are essentials—paying the mortgage and your bills, putting food on the dinner table, maintaining your method of transportation that gets you to your job.

People who choose to live their lives examining money in such a manner end up happier because they feel they have some control. If that’s the case, why shouldn’t you? Learn to budget. Write down everything that you buy and spend money on in a month’s time. Don’t leave anything out—include any expenditure, be it a night out on the town, trendy clothing, dry cleaning, or a birthday present for your niece or nephew.

Now, look over this list and be honest with yourself about where you can cut down on spending, particularly if it’s unnecessary. Luxuries such as high car payments, dining out frequently, and high interest credit card balances