Can money buy you happiness? We say yes, if you use it wisely. This is because apart from eliminating money-related problems, prudent use of it also provides financial security thus allowing for lasting happiness. Furthermore, while money may not be the sole indicator of happiness, being penniless isn't exactly ideal either with money able to bring about greater life satisfaction and happiness.1 Paying for services such as a housekeeper or an assistant would also free up pockets of your time thus lightening your load and reducing any pressure that you may feel. This then allows you free time to spend as you wish and can therefore put you in a better mood. As such, this article will elaborate on how careful use of money then allows you to achieve happiness in the form of financial security, satisfaction and independence.
(See "Start 2018 Right With These 4 Financial Goals")
#1 Financial security
While having money can bring you happiness, this does not refer to extreme wealth but rather the ability to be financially secure and stable. Work towards becoming financially secure by sorting out your finances, ensuring sufficient income, having an emergency fund and planning for future goals. Additionally, in order to be financially stable, it is also important that you eliminate any outstanding debts. For example, paying off mortgage loans ensures that you will have a place to live in while clearing credit card debts or education loans allows you financial security knowing that you are debt-free and no longer burdened by the monthly repayments.
(See "Can You Really Afford A Condominium By 30?")
#2 Financial independence
Secondly, when you have sufficient savings or passive income to sustain your lifestyle without needing to work, you would then be enjoying financial independence. This is important as being financially independent is necessary in order to allow for your retirement. This ensures that you do not have to worry about your finances such as whether you will run out of money 6 months later or what would happen if you are unable to repay your debts.
To become financially independent, start by being aware of your expenses and finances. This means to organise your finances, draft out a saving plan, pay off outstanding debts and live within your means. Determining your long term financial goals also gives you a target to work towards. For example, if you aim to enjoy an early retirement by the age of 55, start by estimating how much you would need in retirement and devise a financial plan that can allow you to achieve your target. Setting a budget for yourself also helps to ensure that you spend within your means and would then be able to reach your financial goals.
(See "Want An Early Retirement? Find Out How Much It Costs")
#3 Financial satisfaction
Lastly, obtaining adequate insurance ensures that you and your family will be protected when a disaster strikes. This allows you a peace of mind with knowledge that you and your loved ones would receive ample coverage and do not have to worry about any unexpected costs. For example, life insurance such as term or whole life policies helps to cover your protection gap thus making up for any shortfall that you may have. This ensures that your family can continue to lead life as per usual should you unfortunately pass on. On the other hand, adequate health insurance offers you coverage should you be hospitalised whereas critical illness policies helps to cover the costs of hefty medical bills and post-treatment costs.
(See "The 3 Best Policies For Every Life Stage")
How FSMOne can help you get on track
Our team of friendly advisers are able to help you review your financial objectives, long term commitments, and offer you investment and insurance advice specific to your needs. If you would like assistance in reviewing your financial and protection portfolio, or simply to get a quote for an insurance plan,
Available Products on FSMOne Insurance |
Term Life, Whole Life, Critical Illness, Annuity, Health, Endowment from Manulife, NTUC Income and Tokio Marine Life Insurance *Please check with our advisory team if the product you want is available on FSMOne Insurance |
1Source: https://www.theguardian.com/money/2016/jan/07/can-money-buy-happiness
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