Everyone says it’s possible for you to’t buy happiness, at least in theory.
Many of us have trouble breaking free of the siren song of getting and spending.
For most of us, the odds of reaching the million-dollar earnings mark are extremely low.
It may seem strange to equate your well-being with your financial portfolio, but it’s a powerful metaphor.
Are there ways you’re using your resources for only negligible gains?
Where in your life do you want to see significant growth?
On one level, we all know that.
Yet how we choose to spend our money doesn’t always reflect that.
The exercises that follow can help you allocate your assets to reap the biggest happiness returns.
Find out where your resources are spent and what they canreallybuy.
Take two minutes to draw up a list of thingspurchased or freethat make you happy.
Think traveling, talking to friends, winning that eBay auction, sunsets, even chocolate.
Scribble down whatever happinesses, small and large, come to mind.
Record what you spent in the past few weeks.
Now reread the happiness list and put a dollar sign next to the things that cost money.
Zero in on your essential living costs.
(We’ll get to debt and savings in a moment.)
Taxes may take up 30 percent of your gross incomeand you haven’t even gotten to gifts or travel.
But don’t stop!
It’s important to read the whole plan.
Stash money for rainy and sunny days.
Although this feels like an elaborate savings plan, think of it as a saving-to-spend plan.
BUCKET 3The third 10 percent chunk goes toward retirement.
Don’t argue about this, people.
BUCKET 4The last chunk is for fun, spontaneous buys such as splurgy new sandals and music downloads.
This is the spoonful of sugar that makes The 60% Solution work.
Answers to all your 60% Solution questions
Question: What exactly is a fixed expense?
Answer: Your fixed expenses are what are necessary for you to live.
Questions: What category does debt fall into?
Question: There’s no way I can meet those targets.
What should I do?
Answer: Adjust the numbers according to what makes the most sense for you.
Setting aside even 2 percent in each of the spending buckets is better than nothing.
Question: Where’s the category for happiness?
Fixed expenses that help your life run smoothly will also add to your personal satisfaction balance sheet.
It may be tempting to read through a simple financial plan like this one and decide to ignore it.
It seems too easy.
Wouldn’t you enjoy life more if you had some frivolous money to spend each month completely guilt-free?
Tucking away a portion of your income for specific spending goals can allow you to do just that.
Excerpted fromMoney Can Buy Happinessby MP Dunleavey (Broadway Books, June 2007)
Photo Credit: Ericka McConnell
