Financial Well-Being: How to Stay Happy on a Budget

Financial Well-Being:

How to Stay Happy on a Budget BY AMANDA ROLAND Depending on your personality, the word “budget” either makes you excited or terrified. Some people see personal finance and budgeting as a game that will help save them money, but others see it as a set of restrictive rules that will strip away their happiness. The truth is, budgeting doesn’t have to be scary, restrictive or complicated at all! In fact, setting up a reasonable budget can make you feel 5 0 % N E E D S 3 0 % W A N T S 2 0 % S A V I N G S 50/30/20 accomplished and – dare I say – happy! Let’s find out the dos and don’ts of personal budgeting.

HOW TO BUDGET AT HOME

WHAT IS A BUDGET? Banks and Carroll suggest looking at websites At Banks Carroll Group, I talked to Certified and apps for free budgeting resources to help you! Financial Planner Ashley Banks and Financial NerdWallet has a free budget calculator online that Advisor and Partner Donna Carroll to get some uses the 50/30/20 rule. According to their website, the insights on budgeting, and they said, “A budget calculator “divides your take-home income into three starts with figuring out what you are spending categories: 50% for needs, 30% for wants and 20% your money on. Then, it becomes about needs and for savings and debt repayment.” This is a very basic wants. It basically just makes you think before you way of setting up a budget, and it works very well buy.” Whether you are making a monthly budget for many people. Also, Banks and Carroll encourages or yearly budget, you will set your budget to a people to set up rewards for themselves if they meet certain amount and allocate your money according their financial goals! “If you save $20 on groceries… to your needs, expenses and amount of money you then you reward yourself with that extra money going need to save. What makes budgeting hard is the into a vacation fund or maybe towards getting your little things that add up: coffee runs, eating out, nails done,” they said. unnecessary shopping, monthly subscriptions. It is best to identify and limit unnecessary expenses, At the end of the day, we know that money can’t buy but that doesn’t mean you have to eliminate happiness. However, financial stability and wellStarbucks from your life! The key is moderation being can lead to less stress, peace of mind, decreased and planning. anxiety and flexible spending, which can contribute FIND THE “WHY” be the missing piece in your financial plan that could Finding the “why” behind your budget is also make you just a little happier. very important, according to an article by Lauren Schwahn at NerdWallet, an online financial coaching site. Whether you are trying to get out of debt or saving for a big life event, knowing why you are doing something could make you more committed to getting your finances in order.

The feeling of accomplishment that comes with reaching your personal goals can also increase your well-being (aka happiness)! A study published in the Journal of Personality and Social Psychology followed students through one semester of school, and it found that the students who worked toward and attained their “motivecongruent goals” showed an increase in emotional well-being. This same concept can be applied to your financial goals! to your overall happiness. A thoughtful budget could

Quick Budgeting Tips:

Use cash instead of

cards. It is easy to swipe your card here and there, but using tangible cash helps you visualize how much money you are actually spending.

Have a goal! If you are goal-oriented, this could help you stay on budget. For example, start with a $100 savings goal for the month. If you reach your goal, treat yourself to something small like a big cappuccino from your local coffee shop or a new book!

Have an accountability partner or support

group. No one likes to go through hard things alone, so having support from others is a game-changer. You can find online support groups to get involved with, or you could gather some friends to go on your budgeting journey with you. The more the merrier!