The seven habits of financially happy people

Financial happiness can be hard when you are constantly trying to catch up with your debts and credit cards. But some people have discovered how to be financially happy.

Here are the 7 habits of financially happy (FH) people.

Habit #1: They spend less than they earn

This sounds way too simple but is the key to being financially happy. These individuals know their limit – financially. Like anyone, they might want to go shopping whenever they like, go on vacations wherever they want and spend money however they want. But they stick to their budget, which is how they avoid unnecessary debt and have enough income for essential things like paying bills.

Habit #2: They take steps to reach their goals

It is one thing to set goals, but another to follow through with achieving them. Financially happy people never let their current situation hold them back. If they are unhappy with the lack of money, they take the necessary steps to change that. Identify where you need to make improvements and then create a realistic financial plan to follow through. Use the help of a professional, if need be.

Habit #3: They don’t waste – anything

I grew up learning this lesson. Whether it is food or clothes or money, don’t waste anything. It is not about finishing the plate of food and feeling too full. The lesson to learn is to take small portions. When you waste anything, you are telling the Universe that you don’t give a damn about not only your money but the effort that has gone into producing that (food, clothes, etc).

This is not about being stingy, but about being a conscious consumer.

Habit #4: They don’t define success by the size of their bank accounts

Financially happy individuals work hard to care for themselves and their families. They know that the number of zeros in their bank account doesn’t define success or happiness for them. They recognise the pitfall of basing their worth on their bank balance. To them, financial happiness comes from knowing that they are on the right path and making responsible choices with their money.

Habit #5: They stop comparing

Comparison is the thief of joy and financially happy people never compare their situation with another. They truly understand that each of us is on our own journey; that life unfolds in different ways. This means incomes vary, family priorities are different, so there is no need to keep up with the Joneses.

Habit #6: They plan for financial mishaps

It may look like FH people have zero financial worries. The opposite is true. They know that financial misfortune is a part of life and when it happens, they have a plan in place. For example, they have personal insurance (life, trauma and TPD) to protect their loved ones should anything happen to them. Or, they have their emergency savings fund to dip into when white goods break down.

Habit #7: Find gratitude in your current situation

A lot of us live in a ‘if-then’ or ‘when-then’ state of mind. When I become rich, then I will be happy. When I am fit, I will be proud of my body. When I buy that two-storey house, I will know that I have achieved success.

It is true that you will never feel successful, if not now. Be grateful for your current situation and see how magnificently the future unfolds for you.

One of my mantras, that I have on my phone is that “I am exactly where I am supposed to be at this point in time”. I look at this reminder not only when things don’t go my way, but even when I am happy and this is a constant reminder that life is truly unfolding for me.