Does money make you happy? This question has been on mankind’s mind for a very long time. Research findings to date say, roughly simplified: money does not make people happy. But it does prevent unhappiness.
People who don’t have to worry about their finances are generally happier. In our opinion, one’s own attitude makes a decisive contribution to happiness. This applies to your views on lifestyle as well as your attitude towards money. The following tips come from the book “Investing Money for Dummies” – taking them to heart will definitely lead to a more relaxed, perhaps even happier life.
1. Do not only think about money – but everything that makes you rich
Even if you were to lose all your wealth, you would not be left completely joyless and destitute. For it is not only money that makes life rich, but first and foremost social relationships, friends and family. Hobbies and interests are also part of a rich life. And possibly also one’s own religion or ideology as well as political or social commitment. All this does not necessarily have to be expensive. Despite all the – sensible! – preoccupation with income and financial provision: do not allow money to become the focus of your life.
2. Invest in education
At the moment, massive waves are rippling through the financing world. Inflation may be the wealth killer of the next few years. This raises the question of which lasting values you can invest in at all. Shares, real estate, gold, other material assets, that is the standard answer to this question. However, one very valuable investment often goes unjustly unmentioned: education. Qualifications pay off in the long run. Nobody can take away what you have learned. You can turn your knowledge into money again even under the most adverse circumstances. This is something to keep in mind when you are considering whether to spend money on a seminar or part-time studies.
3. Do not become a news addict
If you spend a lot of time on stock market news, you can easily become a news addict. Constantly there is a new villain, news are always fuelling stock market prices or causing them to plummet. Don’t be irritated by the constant flood of news. Learn to think in the long term. This will also help you to simply sit out a stock market crash in the knowledge: If you have solid, long-term successful stocks in your portfolio, you don’t have to react to every news headline.
4. Do not forget the joys of life
Frugality is good, stinginess is not. Of course, you have to limit some consumption for financial provision. Without regular savings instalments, the financial cushion you need for the future will not build up by itself. Nevertheless, you should not deny yourself all purchases that give you pleasure. It would be a pity if you stopped buying books because of all the saving and investing you do. It would be a shame if you stopped meeting friends to have an after-work beer with them in the pub in the evening. Or if going to the theatre, concert or cinema would also fall victim to the savings mania. The investment of money should not be hostile to life. It’s no use at all if you have a pile of money in your account but have forgotten how beautiful what you can buy with it is.
By Judith Engst & Rolf Morrien
BOOK RECOMMENDATION
Those who make financial provisions increase their chances of happiness. The book “Geldanlage für Dummies” by Judith Engst and Janne Jörg Kipp will help you lay the foundations for this. You will learn everything you need to know about saving and investing and receive many valuable tips on how to put this into practice.