How to Use Your Money to Maximise Your Happiness

Have you ever considered your money as a precious resource? For most of us, every dollar has, on some level, come from you selling your efforts and your time. Your time is precious and finite. Your energy is precious and finite. How you use your money should reflect that.

We all need to make dozens of decisions around money every single day. And we all want to maximize our fulfillment and happiness, and to make a positive impact. Money always involves choices. When say YES to something, you are saying NO to something else.

Yet for so many of us, the way we spend our money is in no way a reflection of our values, or how we want to be in the world. You consider yourself generous and giving, yet last year you only gave $10 to a Red Cross door knock appeal. You consider time with your family to be THE most important thing, yet upgrading your home (and mortgage) is going to tie you to that full-time job you hate for another 20 years. You revel in travel, yet you spend your spare money on takeaway meals and coffees not airline tickets.

So how do we make better choices?

One word – Mindfulness. I’ve always been drawn to the practices of meditation and mindfulness. I’ve tried to apply the principles to elements of my life – eating, running, walking in nature. But until I started reading personal finance writings like JD Roth’s blog ‘Get Rich Slowly’ or ‘Your Money or Your Life’ I had never thought of mindfulness in the context of how I spend money.

It may seem so completely unrelated to associate your personal finances with mindfulness practices. But in fact, money mindfulness can be a useful tool for living a more fulfilling life. And there lies happiness. Using your money mindfully will reduce wasteful spending, maximize every dollar you have and align your spending with what is important to you.

This has been a gradual process for me – becoming clear on what I value, unpacking what I actually spend money on (and where it doesn’t match up), and trying to be more conscious with every little purchase. I’ve still got a way to go, but here are some of the questions I ask myself to bring my money life in alignment with what truly matters to me.

What is important to me?

You should be crystal clear on what you value in life. Write it down if you must and stick it above your computer screen or in your wallet. This is your reference point for all your decisions about money going forward. From this you can form your future financial (and life goals). Words like freedom, health, contribution, family, gratitude and adventure are all high on my list.

Does the purchase align with my values and goals?

 Let’s say you value freedom. You value adventure. You value family. So, don’t go working your butt off, missing time with your family, to buy shit you don’t need! Save the money, pay off your mortgage and fund your freedom. Save your money and go on kick ass family adventures. Live simply and spend loads of quality time with your children and friends.

If your purchase doesn’t align with what’s important to you, and doesn’t add any measurable value to your life, ditch it or look at your alternatives.

Are there any other choices?

There are very few purchases that are not a choice. We need to eat, but what and where we eat is a choice. We need shelter, but what kind of house and in what location is usually a choice. Look at your alternatives. Can you borrow the item? Is there a free or cheaper option? Can you make use of something you already have?

And yes, it sucks to receive an electricity bill in the mail, but that is the cost for having the rather useful service of a cold fridge, lights to read at night, a hot shower and a fan on those stinking hot days. Embrace it, feel gratitude or make a change (there’s always candles and an esky, right?!).

How does this purchase make you feel?

Sometimes our gut instincts give amazing insights as to whether you are living (and spending) in line with your values. I feel great when I go to the Farmers Markets and buy wonderful, local fresh produce (even if it costs a little more), or when I buy a gift from a small local business. I feel lousy when I shop at Coles or eat at a chain fast food joint. And sometimes it’s just unjustified guilt…..

I feel guilty – now what?

You’ve thought about it. You feel certain the purchase is aligned with your values and will really add great value to your life. You can afford it and the alternatives don’t stack up for you.  So, spend the money, and ditch the guilt! I must have too’ed and fro’ed about spending the amount I do on my yoga membership for a good few months. Still some days I will be lying in Savasana calculating how much each visit to the studio cost me that week (the curse of having an financial mind!). But this is one thing that makes my week fabulous, calm, energised, happy and peaceful. I am (slowly) learning to ditch the guilt!

Don’t feel the need to justify your choices to those around you.

I think prestige cars are ridiculous (and no doubt I will write why someday soon!). Just like my yoga subscription is quite possibly ridiculous to someone else. But that is their decision on how best to use their precious resource that is money, and this is mine. You need to be able to justify the way you use your money to yourself… maaaaaybe, your partner. But that’s it. You sure as hell don’t need to justify it to someone else.

So how about you? Ever adopted the idea of mindfulness with your money? Maybe you have a fabulous tip that’s worked for you.

I’d love you to share your stories. Let’s learn together xo