Yesterday, I had a great conversation with a new friend about blogging and how this whole crazy new chapter of my life began. As I walked her through a bit of the history of The Happy Homeowner, we were discussing how to choose an appropriate domain name for a blog or website/online business. This of course led me to ponder my own choice as I later walked to the train station.

It’s true that on the surface, ‘The Happy Homeowner’ gives you zero indication that this is a blog rooted in personal finance. Hopefully when you read the tagline of ‘living a healthy, balanced life one cent at a time,’ it starts to make more sense but I’ve never really focused too much on this seemingly large disconnect. Why?

Happiness and Money

Because at the root of it, I believe that happiness has a huge part in personal finance, money management and how well we’re able to manage and balance our financial lives. Plus, I’m a homeowner and absolutely love all things about being home (it’s true–I love to clean, cook, decorate and I’m always on the hunt for a new DIY project).

As I later sat on the train home, I started to think even more about why it was so important for me to have the word ‘happy’ in my domain name (and inevitably, my online brand). While I’d like to think that people are correct in their general opinion that I come fully loaded with a sunny disposition and (sometimes too much) energy, I have to take it a level deeper and think about the connection between happiness and money….

(un)Happiness in the Past

When I was younger, money was a hot topic at home–and not always for the good reasons. Growing up in a house where financial arguments were the norm and money was always tight gave me a resolve to ensure my own finances would always be on track. This was especially true when I saw the adults around me (parents, family, neighbors) putting so much emphasis on the things they had, the money they didn’t have and how the struggle between wanting and not having ultimately caused a lot of these people their overall happiness.

But if you’ve read my archives, you know that despite my best efforts, I stumbled along for a while during college and after graduation as I tried to manage my life, my finances and my future as a newly minted, independent adult. I lost track of my younger self that was adamant about sound money management.

If I’d been so great at saving money as a kid (one of my greatest pleasures was making deposits at the bank into my green savings ‘passbook’–does anyone remember those??), then what happened during my early 20s? How did I go from the 12-year old with a savings account to the 20-something that was living paycheck to paycheck?

(un)Happiness Breeds Dissatisfaction

I was unhappy.

I used material objects as a means to live the “better” life I thought I deserved even though I had no clue what a “better” life really was (yet).

I was frustrated with jobs that chewed you up and spit you out–I didn’t (and still don’t) want to be a cog in somebody else’s wheel.

I was bored with my life.

Dissatisfaction Breeds Poor Money Management

I read recently that when we allow ourselves to stagnate and live joyless lives, we begin to allow the frustration and boredom to take control of our choices, our well being and our attitude. We also allow these negative undercurrents to catapult us into an expensive life (that we most likely can’t afford).

How many of you know people who “treat” themselves to a nice dinner regularly? Have you ever uttered the phrase, “I work hard; I deserve it?” Do you ever catch yourself dealing with stress by shopping (even if it’s through the windows), dreaming of a new home/vacation/car/dress/bag/shoes?

I certainly have.

Artificial Happiness Costs Money

When I wasn’t happy with some aspect of my life in the past, I often found myself creating artificial happiness in another area. Instead of seeking out goals that were rooted in my own happiness, I sought comfort in mindless spending. Instead of taking vacations to relax, recharge and revel in the experience, I booked them to have something to look forward to.

Thankfully, I’ve found that person who used to respect money within myself again and I’m in a better financial situation than I’ve ever been before. I’ve taken steps to ensure that I’m living a life that fulfills me in both my professional and personal pursuits, and I now make sure to carefully consider opportunities and choices to ensure they fit the happy life I want to lead.

I’ve also realized that if we are constantly stuck in a vortex of buy, buy, buy; spend, spend, spend where we allow our passions to fall to the wayside and our aspirations to be dictated by performance reviews and bank balances, we quickly begin to live a life that lacks substance, joy and fulfillment.

True Happiness Saves Money

By finding the things that make us truly happy: Experiences with friends and family, donating our time and efforts to those who need it, learning something new that we’re fascinated by, downsizing our homes to be free from emotional and material clutter, etc., we chart a new course.

Ultimately, when we choose happiness over money, money management actually becomes easier. You can save more, pay off more debt and set (and reach!) goals you never thought were attainable when you were a less happy version of yourself.

Paradoxically, allowing ourselves to live as happy individuals who stress less about money can actually bring more opportunity, more satisfaction and more money to us than ever before….

Are you living your life as your happiest self? What impacts has happiness (or unhappiness) had on your money?

 

Photo credit: lawprier