Can personal finance make us happy?

Last post: Dec 8, 2017

It’s often said that money can’t make us happy. It’s certainly true that money can’t buy us love. But can having our personal finances in check improve how we feel?

We all know of clichés relating to happiness and money. Today we're taught to value the important things like our friends and family, while placing money matters a long way down our list of important aspects of life. Current trends including practising gratitude and mindfulness teach us to be content with what we have and step away from the types of concerns money can trigger.

While it would be wonderful to live in a world where money simply didn't matter and we were all free to enjoy our loved ones and "our journeys" in peace, this is a luxury usually only available to those with ample funds in the first place.

An unrealistic stance

In order to stop worrying about money, we usually need – you guessed it – plenty of money. That's why money really does factor into the overall happiness of anyone who has to worry about funding emergency expenses, squeezing the household budget to pay for a school trip or finding juggling payments to be very stressful indeed.

These worries don't mean that money can make you happy. Rather they demonstrate how having your personal finances in order can help you get on top of negative feelings, from anxiety and low moods to stress.

The "happy money" equation

A recent study has revealed the perfect equation for happiness based on personal finance. This equation breaks down into four criteria which we must tick off to ensure financial well-being:

1.       Feeling in control of your every day and monthly finances

2.       Having savings (or similar) that will buffer you in financial emergencies

3.       Working towards financial goals

4.       Having the financial surplus to undertake enjoyable activities

When you are able to fulfil these four financial criteria, experts suggest you will achieve financial well-being, whether you scale down or get more involved with your money to make this happen.

Do you think money and happiness are related? How many of the four criteria do you fulfil? If you don't have a financial buffer when emergency expenses arise, we may be able to help. Talk to our experts about arranging short term personal loans today.