The rule of happiness
Posted by Faith, 28 August 2009
Some people ask whether they should live for today OR for tomorrow. My answer is that everyone should live for today AND for tomorrow.
As long as you make (or earn) more than you spend and save some of it according to your priorities, you have learned the rule of happiness.
The creator of this rule was a famous author, who was actually a rather clever financial guru as well.
Charles Dickens introduced us to Mr Micawber in his book called David Copperfield. Mr Micawber did not follow the rule of happiness and was imprisoned for failing to pay his debts. In the book he sums up his sorry state with what has now become a famous quote:
"Annual income twenty pounds. Annual expenditure nineteen pounds, nineteen and six - result happiness. Annual income twenty pounds. Annual expenditure twenty pounds ought and six, result misery."
Charles Dickens created another interesting character, who also ignored the rule of happiness - Ebenezer Scrooge in the book A Christmas Carol. Unlike Mr Micawber, Scrooge had money and lots of it. He loved money but couldn’t bear to spend it. His life was miserable like Mr Micawber’s, even though they were at opposite ends of the money spectrum.
Fortunately, both characters finally saw the error of their ways and went on to have better lives.
So, how do you spend your way to financial freedom? There are six key steps, which will be covered in more detail as part of Financial Awareness Week in September. These are:
- Plan your financial life - Ready, Set, Goal!
- Make the most of what you've got - Make it, Save it, Spend it!
- Protect what you can’t afford to lose - Cover the “What ifs”!
- Manage your debt - Swim, Don't Sink!
- Grow your money - Make Dreams Real!
- Secure your retirement - Plan to Work Less (or not at all)!
Start by thinking about what you want for your life and when. Prioritise these goals according to your needs both for today and tomorrow. If you can’t have it all now, find a balance like Matthew in last week’s blog.
Matthew was at risk of becoming more and more like Ebenezer Scrooge until he discovered that variety and moderation were the right paths to more enjoyable life. Small consistent steps towards your goals are often a lot better than trying to make giant leaps in only one direction.
Remember, there is no absolute right or wrong answer. What is good for you will depend on your priorities.
That’s why you’ve got to make the most of what you’ve got – make it, save it and (YES) spend it!
Find out more about living for now as well as for tomorrow
The story of Gavin and Terry, who didn’t get into debt like Mr Micawber, but were having "speed wobbles" with their spending.
Financial Awareness Week in September
Make the most of what you've got - Make it, Save it, Spend it! – is the second of six key steps that is promoted as part of Financial Awareness Week:
http://www.financialawarenessweek.co.nz/financial-planning/steps/step2.php
Please visit the special website at http://www.financialawarenessweek.co.nz/ for more information or to find a financial adviser near you.
Want more out of your life and money? Then buy my book Keeping the Faith - Travel the World. Beware - it is very powerful! It was awarded a top 5-star rating by the on-line financial bookstore Good Returns, along with the warning: "This book changes lives." Click here to buy Keeping the Faith - Travel the World.
See previous blogs:
Don't sweat the small stuff.
Can you grow a money tree?
What's holding you back?
Money or your life - which has more value?
The seven secret thieves
Five questions to change your life
Find that spark
Switching lives - what would you choose?
Who can I trust to help grow my money?
How to swim in a sea of money
Life can be unfair
The rule of happiness
No way to live
Anyone can be good with money
Best ways to warm up winter
Who wants to be a millionaire?
The secret of wealth
Keeping your money safe
Having it all
Win an all-expenses-paid trip for two to Europe (Part 3)
Win an all-expenses-paid trip for two to Europe (Part 2)
Win an all-expenses-paid trip for two to Europe (Part 1)
Make a change for good
A recipe for a happy Christmas
Nothing else matters
Rage, rage against the dying of the light
Make a wish come true
Buying or Selling a House – Those that care least, usually succeed
When is a good time to buy a house?
Sleepless Nights in a War Zone
Transitions - more life or more of the “same old, same old” boring stuff?