Searching for financial freedom? Understand happiness first.

There has been pretty solid research recently in recent years on happiness, but that hasn’t deterred many millions to search for ultimate happiness button. Idea of striving and achieving something to become happy is far too common sadly.

Happiness ideas

I am not saying happiness is pretty darn easy and why can’t people understand. Happiness ideas are pretty simple although not necessarily easy to implement.

The list below is by no means complete, but it is pretty solid.

1. Great relationships. Quality of your relationships goes long way to determine happiness.
2. Gratefulness. If there is something close to happiness button, then this is it. Watch this beautiful TED talk by monk David Steindl-Rast. He explains the idea so much better than I ever could. https://www.ted.com/talks/david_steindl_rast_want_to_be_happy_be_grateful?language=en

3. Mindfulness. Mindfulness practice (Ex: meditation) helps you gain inner peace, make yourself more self-aware.

4. Giving and purposeful life.

[Explore more on science of happiness at http://greatergood.berkeley.edu/news_events/event/the_science_of_happiness ]

Happy life doesn’t mean being in state of euphoria all the time, neither it should be confused with being satisfied without any drive in live. In fact, one shouldn’t be satisfied with state of affairs in life and always look to improve while still being happy. If you are waiting for something to happen to become happy then you are doing happiness wrong. Point here is, happiness is a choice not a mere by product of something else.

What doesn’t bring happiness for sure?

1. Stuffs. Need I say more? Your shiny new toy isn’t a reliable source of happiness. It gives a fleeting sense of happiness but as you grow used to experience, the effect is gone. Then you need more stuffs and even more after a while. You run out of space, then you need bigger place and that runs out too and it goes on. Instead of happiness it adds more stress. Save yourself from this habit.

2. Ego. Need to pamper your ego for happiness isn’t sustainable either. That crave for recognition is similar to a crave for shiny new toy but probably even more harmful. It can just grow more and there is no limit. Be mindful of your ego.

Now we have basics covered for happiness, let’s move on to financial freedom.

Financial freedom is a great tool for mental peace. Remember money in itself isn’t evil, neither it makes you evil. Although It may expose the evilness, already in you. Be careful.

Path to financial freedom is pretty straight forward. Just remember two things. Save and Invest.

1. Save: Save by not buying crap you don’t need. Be aware of your wants vs needs. I am not suggesting, never splurging money on anything other than your absolute need. That’s not always possible or even recommended but be aware of that feeling, that itch, that temptation. It helps you not to take the downward spiral path of unnecessary spending. Another common mistake is letting price determine value. Ask yourself, is the pricey stuff just to boost your ego ? are you hurting yourself in long term by falling into ego trap?

[Actually the problem in many relatively richer countries (as exemplified by recent financial crisis) isn’t spending your own money. It’s borrowing money to buy things that you can’t afford. .Pure BS]

Another easy way to save money is to never see it. Automate some of your income go to your investment account every month.

2. Invest: There are some great investment gurus to learn from. I am not talking about your regular TV/radio talking heads who pretend to know the market (No, they don’t have much clue. They just talk) or taking help of wall street (nope, your earning is not their priority). Take investment advice from sage like John Bogle. Here’s some good blogs to follow and books to read.

Blogs:

1. Mr. Money Mustache http://www.mrmoneymustache.com/

2. Get rich slowly http://www.getrichslowly.org/blog/

Books:

1. Total money makeover: Good book if you are in deep debt despite making decent income. If you are doing well financially but just need some good investment advice then you can skip this. I didn’t like his idea of investing in mutual fund)

2. I will teach you to be rich: Nice read and funny too. Packs some good advice.

3. A random walk down wall street: Just brilliant.

4. The bogleheads’ guide to investing: Another brilliant book. Gives great insight on investing.

Just take some pain of learning about investing and let capitalism and compound interest do the work for you.

Enjoy path to financial freedom. Be patient until you reach there while being happy.