From Here To Financial Happiness

From Here To Financial Happiness is your guide to having a healthier relationship with money and shows you how looking to the future to prepare for what’s ahead can make you a lot less stressed about your financial life.

When COVID-19 lockdowns started in March of 2020, my Fitbit showed that my resting heart-rate spiked. All of the monetary worries I was having were showing in real-time! And I wasn’t the only one with financial stresses

Money trouble is one of the biggest anxieties for almost everybody. But if you plan ahead with an emergency fund, you can say goodbye to those worries and their negative effects on your health.

Strive to have three to six months of living expenses saved somewhere that’s difficult to access. That might be a savings account or secure investments.

The biggest setback this is to prepare you for is in case you lose your job. You can usually sacrifice a few things in your monthly budget to replace a broken washing machine or fix your car. But unemployment takes away that budget entirely.

I lost my job in 2019 and I remember how stressful it was to make sure we’d stay afloat. Luckily I had a growing side hustle, but I quickly learned my lesson and now have savings in the bank at all times.

To get started with your emergency fund, look at your monthly living expenses and multiply by three or six to know how much you need. Then put that money into a savings fund and have your checking account automatically make deposits to it.

Can you imagine if you had to labor for hours over every little decision? Luckily we don’t have to deal with this exhausting possibility because we’ve evolved the power of instinct. While this power makes it easier to choose quickly, it sometimes hurts our finances. Think about how, for example, our ancient ancestors had to search for food at every chance they could. They had to work hard in a time when it was difficult for them to find nourishment and shelter. Our minds still work the same way, but this tends to make us overindulge and not think ahead very well. Valuing hard work with unrestrained optimism that it always leads to success makes it hard to plan and work smart. This is why some people get excited about a new business idea only to see it fail due to poor planning. Instead, look ahead at where your current financial situation is taking you. Make sure you’re well aware of your current expenses. Calculate your fixed monthly expenses like your mortgage. Don’t let them be more than 50% of your total pre-tax income. Add that…