Money Spreadsheet For Spending – Having money is what allows me to travel the world, to go out to dinner with my friends or give me some caprichillo from time to time, all of them activities that make me deeply happy.
However, it is also true that there are many people who enjoy a good economic situation and still live bitter.
Why is this happening? Why are there people who give money happiness and others who do not?
Very simple: because the second ones do not know how to spend the money correctly.
Recent scientific studies have shown time and time again that human beings are bad enough predicting what will make us happy. So it’s no surprise that most of us spend money on things that we believe will bring us satisfaction and joy but that actually end up leaving us as we were or even worse.
In the same way that if you want to be an architect you study architecture, if you intend to be happy you should study what really contributes to increase your happiness.
I have been doing it – and practicing it – for years, and today I want to share with you the 7 principles that I continue to spend my money to make my euros make me as happy as possible.
Money Spreadsheet For Spending
1. Do not skimp on your health
I know it sounds topicazo, but health always comes first. If you have to choose where to spend the money, always prioritize your health.
It is very difficult to be happy when you feel bad. If you are sick, all your plans, hobbies and illusions pass into the background, and all you want is to recover.
You’re going to have to live in your body all your life. Do not be stingy when it comes to taking care of it!
We are the ones who eat, so always buy top quality food. Do not choose normal eggs instead of poultry to save you a purse if you know that the seconds are much better for you.
Also, do not skimp on exercise. If you know that the only way you can train is by hiring a personal trainer or by signing up for tennis lessons, do it!
And of course, do not even go on a trip without good health insurance.
All that contributes to care and improve your health is money well invested.
NOTE: Interested in eating better? Check out my favorite food guide.
2. Buy more experiences and less material goods
In addition to looking great on your Facebook wall, the phrase “accumulating moments instead of things” is great advice if you want to be happy.
Although it is true that when we buy a material object that we like like a car, plasma television or shoes we feel better, that “rush” only lasts a few days. Soon we became accustomed to our new acquisition and cease to be a source of pleasure.
This phenomenon is known as hedonic adaptation, and is the culprit that we always want more and more.
The happiness that the experiences bring us, however, is much greater and more lasting than the one that contribute the things for several reasons:
Experiences change. Whenever you go out with your friends you do something slightly different. You go to different bars, ask for different tapas, you know different people … That makes it more complicated to get tired of drinking beers than your BMW cabriolet, which is always the same.
The experiences are expected with hope and then remembered. Think about the last time you went on vacation. First you enjoyed planning and imagining the trip, then you enjoyed the trip itself, and to this day you still enjoy when you remember how good you spent it. With some pants, it is not the same.
Experiences are shared. When you stay with your colleagues do not talk about your new apartment downtown. Maybe the first day you tell them that you have moved, you explain briefly what the house is like, but it is certainly not a topic of recurrent conversation. But what’s more fun than exchanging battles with friends and remembering old anecdotes together? There are stories that happened several years ago and when I listen to them they make me laugh out loud.
In short: when choosing between material possessions and experiences, spend your money on the latter.
3. Give small pleasures often
Whether it’s material things or experiences, you’ll be happier spending your money on various little pleasures than on a single big purchase.
There are two good reasons for this.
The first is that – as we saw in the previous point – human beings have become accustomed to everything, even the greatest luxuries. No matter how you buy a house, a sports car or a yacht, a day will come when it becomes a part of your life and stop giving it importance.
That’s why it’s better to cenes in 20 restaurants of 10 euros than in 1 of 200, you have a coffee every morning in the bar while reading the newspaper instead of buying a new television, or make several getaways with friends During the year instead of a single large 5-day trip in summer.
eye! There is nothing wrong with going to postin restaurants or melting 1,500 € at an electronic music festival for a weekend if you can afford it. I have done both and I have enjoyed them very much. The important thing is that these more expensive pleasures do not force you to give up other more modest pleasures.
The second reason why it is more convenient to spend your money on many small things rather than on a very expensive one is that small pleasures are less susceptible to the concept of marginal utility, which says that each additional unit of a good brings less value Than the previous one.
What I mean is, if you eat a box of donuts, the first one will know you richer than the second, which in turn will know you richer than the third, which in turn will know you richer than the fourth. The same goes for a trip, with a massage or with anything else nice.
Therefore, as the pleasure of the first “units” is always greater and decreasing progressively, you will maximize your happiness by spending your money on different pleasurable purchases instead of just one and distributing them over time instead of consuming them all at once .
Hence it is against the gurus of the finances that you are advised to save on the small things that you like so much. At first glance it may seem like a good idea, but in practice it will greatly reduce your level of happiness.
4. Invest in your social relationships
Recently the results of the longer study on adult life were published.
For 75 years, 4 generations of researchers monitored the lives of 724 men, asking them year after year for their work, their health, and their day-to-day lives.
The participants had two very different profiles. Some were Harvard students, while others lived in Boston’s poorest neighborhoods. But despite these large economic differences, the conclusion reached after analyzing thousands and thousands of sheets full of information is very clear:
Having good social relationships makes us happier and healthier.
The lesson of all this is that, in addition to not skimping on our health, we should not do it in everything that will improve our relationship with the people we care about.
Think about how much money you have invested throughout your life in your professional career. Universities, masters, training of all kinds … But how much have you dedicated to other people despite the joys that have reported you?
Therefore, spend without fear in dinners and trips with colleagues, in plans with your partner or in going to visit your family. Also in activities that allow you to make new friends or courses to improve your social skills. These are things worth their weight in gold!
5. Do not spend what you do not have
We live in a society where we want everything for yesterday. Big companies know this, and so they offer mechanisms like credit cards or “pay you within 3 months” that allow us to buy things we do not need with money we do not have.
Borrowing is not always bad, and there are times when it makes sense to do it, like when you need capital so a business can take off or grow. However, borrowing with the objective of purchasing consumer items that will not produce any future economic benefits is a mistake in 99% of cases.
When you get into debt you are mortgaging your future. You are buying something that you can not afford with the promise of paying for it with work you will do in the coming months or years.
The big problem with this is that you do not know what will happen or how your life will be by then, but you are still acquiring a commitment that will limit your maneuverability from then on.
An innocent debt, for example, can force you to work extra hours, to work in a company you hate or to live with a partner that you do not want because you have no choice. In addition, it is usually a great source of stress, and in the worst case you can run out of anything.
I think you do not have to say it, but all these situations have a disastrous effect on your happiness, to the point of ruining your life.
My recommendation, therefore, is simple: do not spend what you do not have.
If you can not afford the trip of your dreams right now, nothing happens. Accept it and save.
Working for months to get something you want with intensity creates a sense of anticipation that makes you values and enjoy it even more, and that is lost when you give it all in the moment and effortlessly.
In addition, studies such as the famous marshmallows experiment have shown that people who have self-control and are able to postpone an immediate reward in exchange for greater gratification after a certain period of time are socially more competent, show greater personal efficacy and Are more able to cope with the frustrations of life, three skills that will help you to be happier.
6. Monitor the side effects of your decisions
Your level of happiness depends directly on how you use your time. The more hours you dedicate to activities that make you happy, the happier you will be.
For this reason, you should pay special attention to how your purchases will affect your daily routine.
Moving into a garden house on the outskirts of town may seem like a very attractive idea because it will allow you to barbecue with your friends in the summer, but maybe having to drive an hour every day to go to work or spend Sunday Cutting the lawn does not make you so funny. And at the moment of truth, the second will affect your happiness much more than the first.
Likewise, buying a machine to make your own ice cream can sound fun. However, having a product like this in the kitchen will increase with total certainty the amount of sugar you consume per month. If one of your objectives is to lose weight and you feel guilty when you go with the sweets, it is best to go to the ice cream shop from time to time and forget the blissful machine.
When it comes to spending our money, imagination usually plays tricks on us. We tend to consider only the most attractive features of the product or experience we want to acquire, and we forget the small details and the effects that that purchase will have on our day to day, which is what will really determine us to do more or less Happy
Keep this in mind in order not to fall into this common mistake.
7. Protect your inner peace at all costs
One of the keys to being happy is to live in peace, without stress or worry. Be sure that no matter what happens, you are always going to have hot food to take to your mouth and a roof under which to sleep.
Hence the importance of having an economic mattress that allows you to respond to possible contingencies, such as getting you off work or an emergency of any kind.
It is true that the best way for your money to make you happy is to spend it on the right things, and it does not make any sense to accumulate it to accumulate to end up being the richest in the cemetery. However, having a small reserve in the bank that allows you to cover several months of expenses and is accessible at all times is something that has a great impact on your well-being.
Yes, doing fun activities and buying things you like is fine, but do not underestimate the importance of sleeping well every night!
Conclusion Money Spreadsheet For Spending
Having lots of money is not enough to be happy. The important thing is to spend it on that which gives you joy and satisfaction, something that, although it seems a lie, does not give us as good as we think. Luckily, our friend science can help us with this.
While it is true that each person is different, and what gives me happiness does not have to give to you, we are all human beings, and there are a series of principles and general rules that we can follow if we want to maximize the impact of each Euro in our welfare.
In this article I have presented the 7 that I consider more important. I hope I have given you some ideas on how to use your money and how to be happier using it in a more profitable way, and above all I hope that you encourage them to put it into practice ?