Does Money Buy Happiness?

Does money buy happiness? In my opinion, I think it can buy a measure of happiness because it allows you to have a greater number of choices in life. If you have money, you can choose steak over chicken, if that’s your thing. If you have money, you can choose to work or not work, full-time. If you have money, you can choose whether to live in the ghetto or a nice neighborhood.

I compare money to a tool in a tool box, you use it to get things done. Are you really overjoyed to be in possession of that hammer? Does that saw really make you giddy with joy? Well it’s possible, but the real happiness is not with the “tool”, but in the benefits that tool brings.

Even after someone accumulates a lot of money it does not guaranty a constant happiness. I can think of a handful of entertainers who seem to “have it all”, but their life shows they are not happy. Why? George Loewenstein, an economist at Carnegie Mellon University says: “Part of the reason is that people aren’t very good at figuring out what to do with the money.” They have the “tools”, but they don’t know how to use them properly. Imagine if you used your saw incorrectly, the results could be devastating!

While money can bring some happiness, it’s not enough. Our primary goal in life cannot be to pursue money, I think happiness in life has to do with choice and purpose. Simply being in possession of the “tool” is not enough, the novelty wears off.

So if money doesn’t bring lasting happiness, then what does? There’s a quote Suze Orman says at the closing of her show each week and it goes like this: People first, then money, then things. This is not her exact definition, but it’s the way I look at it: When we value people with our money we are able to do things that brings happiness.  People first, then money, then things.

This is just my own personal view of money and happiness. Can money buy happiness? You bet! Can money make you miserable, absolutely! Look at the tools in your toolbox and build with a purpose.

How much money would it take to make you happy? Do you think that money can buy happiness or even the key to it? If you never had to worry about money again, but still had to work, what would you do? I think your answer would be what truly makes you happy.

Does Giving Make You Richer?

“A man there was, tho’ some did count him mad, the more he cast away, the more he had.” This is a quote from John Bunyan’s The Pilgrim’s Progress. The character Gaius solves the riddle thus: “He that bestows his Goods upon the Poor Shall have as much again, and ten times more.”

Do you think that giving makes you richer? Studies show that people who give charitably make more money than those who don’t and not because they have money to give, but because giving encourages receiving. When people see you giving, they want to give to you.

According to The Giving U.S.A. Foundation it estimated “that Americans donated nearly $300 billion to charity in 2006.” This figure doesn’t surprise me, as a nation we are a giving people, especially when it comes to responding to disaster.

I do think we expect those who are doing well financially to give a lot and often. On two personal finance blogs that I read, one blogger ‘seemed’ to pass judgment on an episode of Oprah’s Big Giveaway for promoting handing out “plastic toys” to a group of kids instead of doing something that would have lasting benefit.

Another blogger wrote a post about a governor who made almost $300,000 in 2007, but reported less than $200.00 on his tax return. The governor’s character and priorities were questioned and his donations were used as a comparison to their own or someone else’s giving. When I make charitable donations throughout the year I never claim them as deductions on my taxes. I never give to charity just to get a tax deduction but I’m also not giving thousands of dollars.

It’s been my personal experience that when I give to someone in need or donate to a charity, I get back what I just gave if not more. I’m not sure how much richer I am, but it does make me a lot happier.

How do you feel about giving, do you think it makes you richer?

No Money, No Problem

Often times, I hear people say that they can’t go anywhere because they don’t have any money to do anything. Truth is (according to me) you don’t need a lot of money to have a good time, it helps, but it’s not necessary. Today many people are either on a budget or simply don’t have the funds to do what they want to in the form of recreation. So what do you do, stay home? Nope! You look for alternative, free or low cost activities you can enjoy without breaking the bank. Below is a list of the few places I take advantage of when my bank account is on life support.

Library. This is one of my favorite places to hang out. Many people are unaware of the free activities offered through the library. Some libraries have writing clubs where writers get together to discuss their work and have it critiqued by other writers. There are book and poetry clubs, free walking tours around town, parenting classes, story time for young kids and teen book groups. Check out the event page on your local library’s website, you might be surprised at the activities or the entertainment you can find there for free.

Park. Take the family, or yourself, to the park and have lunch there instead of at home. Bring some board games, ride your bike, go fly a kite or sit on the park bench and read a book or relax. Little league has also started in many areas, even if your kid isn’t playing, you can still watch the game for free.

Community Bulletin Board. Sign up for your community’s online newsletter to stay current on the events happening around town. Some of them are free or only require a small fee. Also don’t limit signing up just for the newsletter in your neighborhood. In the summertime in a nearby town in my area there’s a free jazz concert every Thursday. The list of entertainers can be emailed to you for future planning or trips. Don’t forget to check out what’s going on at your local schools. Every Friday at my daughter’s school is Movie Night for $2.00 per person or $5.00 for a family, the money is then donated to the PTA and put back into the kids.

Museum. The museum in some areas is free to all visitors. Some do suggest a dollar amount donation, but it’s not required to enter. Often times I pay the suggested amount, but if I don’t plan on being there long, I pay something I can afford. It’s a great place to hang out in the summer, air conditioning included.

Friends and Family. I love entertaining, but after several dinner parties, it adds up! Instead, why not invite just a few friends or family over at a time and make a small meal, order a foot long sub or a pizza. Play board games or cards (any Bid Whisk players), or watch a DVD you already own. Next month, someone else can host a small gathering. Remember the focus is not the meal, but on being together.

It may require a little work on your part, but there are plenty of things to do, many of them free, you just have to know where to look. Not having money to do something doesn’t always mean that something can’t be done. Do you have a favorite free or low cost activity that you can share that doesn’t require breaking the bank?

Job Security In A Hurting Economy

What do you do for a living? I work as a secretary in a law firm. I have a great boss I’ve been with for almost 10 years, my half hour commute to work is very peaceful, the pay is competitive and I have no real complaints. There is one thing however I don’t have: Job Security.

Last month alone, the economy lost 80,000 jobs and nearly a quarter-million over the last three months. Despite this fact, my view of job security has always been a pessimistic one. When people mention the security they feel within their job, I raise my left eyebrow, my head tilts down and left, I look at the person over my glasses, then I burst out laughing. Job security! Advancement in technology is replacing jobs once done by people at a steady rate. The only person who has job security might be a mortician and with people living longer, even they have to wait on our business.

When things are going great it’s easy to get comfortable, to get lulled into a false sense of security, until our job is outsourced or either terminated. Sadly, when a job no longer needs or can afford our services, they let us go, sometimes without warning.

So what can we do in an economy when things are unstable? Prepare now!

Valley and Peaks

Pay off debt. Getting rid of debt should always be a priority in any economy. If you feel your job is secure, why not use your guaranteed income to pay down debt.

Build your emergency fund. The rule used to be a savings of 3 to 6 months of household expenses, or the amount you would need to maintain your household for 6 months. Now it’s 12 months of expenses. Finding a job is a job in itself and may not happen as quickly as you hoped. You can buy yourself more time to find a job that’s right for you if you have a bigger cushion to soften the blows.

Learn a skill. I know people with more degrees than a thermometer and no job. They have the skills and education, and while that’s a huge advantage, it’s no guarantee of a job. However, if you can do something with your hands, no one can take work away from you. Sure you may have to work harder at finding work, but the ability to create work always remains with YOU.

Use free resources. I’m a huge fan of the library, to me it’s a free education. Through reading alone, I’ve taught myself photography and web design. I don’t have the greatest skills in these areas, but I’ve used both as a means to generate income doing work that I love. Yes, I have to find the work, but no one can take away my ability to work. To me, I feel it’s always there when I need it.

How do you feel about your job in this economy? Do you feel a measure of security or do you think you could wake up one day with no job?

Money Monday Tip #20

I’m going to change things up a bit on Money Monday. Instead of money tips, I’ll blog about a finance related matter. The titles will also change and since I like even numbers, this will be the last post ending in a Tip.

Today’s topic: Prenups.

What is a prenup? A prenuptial agreement, antenuptial agreement, or premarital agreement, commonly abbreviated to prenup or prenupt, is a contract entered into by two people prior to marriage or civil union. The content of a prenuptial agreement can vary widely, but commonly includes provisions for the division of property should the couple divorce and any rights to spousal support during or after the dissolution of marriage.~ Wikipedia

I can’t think of a more touchy subject when it comes to planning a marriage. In fact, many people feel that having a prenup is planning for a divorce. I’ll admit if you want to break up an engagement this subject might do it.

I remember an episode on Senifeld when George wanted out of his engagement to Susan so he decided to ask her to sign a prenup, thinking she would be insulted and call off the wedding. Susan, who was worth millions, laughed at the idea and agreed to sign.

Of course, it doesn’t quite play out like this for most people. Feelings are hurt, thoughts of not being trusted arise, doubts about your future as husband and wife are in black in white, just in case. Finances are rarely discussed in depth when entering a marriage, people assume that everything is copacetic forgetting the business aspect of marriage. Love is beautiful, but unfortunately, not too many couples are fighting about how much they love each other, but over finances. Money related issues is still the number one reason for divorce. I’m not suggesting everyone who is planning to get married run out and have a prenup drawn up, not everybody needs one, but I’m thinking Paul McCartney could have benefited from such an agreement.

I wanted to know what then would be some good reasons for having a prenup and according to SmartMoney.com they said you might consider getting one if:

· You have much greater assets or earn far more than your partner — Divorce courts usually award the poorer spouse anywhere from 10% to a full half of the marital property (including household income and possibly inheritances).

· Your partner has substantial debt — You could end up sharing the burden in a divorce settlement.

· You have children from a prior marriage — They need to be protected (and have their college tuition paid) if you die or get divorced for a second time.

· You own part or all of a business — An ex-spouse can claim a share, unleash an army of nosy accountants to perform a valuation or even force a liquidation.

· You’re planning to put your partner through school — If your spouse earns that medical degree and then splits, a prenup will ensure that your contribution is rewarded.

So, what are your thoughts on prenups? Good? Bad? Depends? Only for the super rich? Would you sign one if asked, would you ask your fiance to sign one to protect family property? When is it a good idea to discuss a prenup or is it ever a good idea to bring it up?

Would I sign a prenup? Well first let me read what’s in it and then I’ll tell you if I’m mad or not. I guess it’s like a living will, it’s a document you hope never has to used, but it’s there if you need it. “Hope for the best, prepare for the worse?”

Photo Credits:
Prenuptial Agreement - Awesome Backgrounds
Couple - Woolley & Co.