I teach you how to master your money in less than 5 minutes per week. I am the host of The Personal Finance Podcast with 400K downloads monthly and the Founder of Master Money.
Does Money Make You Happy? 😎
Good Morning,
This is the Master Money Newsletter where we teach you how to master your money in less than 5 minutes a week. We are your Venti Triple Shot of everything Personal Finance and Money.
Here’s what we have on deck today:
-Can Money Buy Happiness?
-The IRS May Be Getting Stronger
-The quick formula to figure out how much to stack in your emergency fund
Whoa, Nelly.
Are we really going deep on the second iteration of the Master Money Newsletter? You bet your big bankroll we are! (And if it’s not that big, you can think of me as your wallet’s personal trainer. Time to get swoll).
If I had a dollar for every person who asked me about the correlation between money and happiness, I would have $0.
Nonetheless, we all think about it.
First, let’s roll out the chalkboard.
A well-known 2010 study by Princeton researchers found that people tend to feel happier the more money they make, up until a point, which they estimated to be about $75,000 a year per person.
“After that, happiness kind of leveled off.”
People’s emotional well-being, or how they felt daily, didn’t improve as they made more than $75,000, around $90,000 in today’s dollars.
Do you know what I say about that? Bologna. Hogwash. Nonsense.
First, let’s look at someone who’s broke.
If you’re broke as a joke, making money is going to feel like jumping into a pool after a long summer day’s work outside. Pure relief.
Lowering your stress levels and anxiety = increased happiness.
There’s no denying this.
If money makes you want to pull your hair out and scream. You’re in the right place. We help solve money stress.
We don’t want money to be the source of your stress. You have enough to worry about as it is.
So money solves that problem if you are struggling to make ends meet.
Yet, this goes beyond those who are living paycheck to paycheck. Here is why money can increase happiness and put a pep in that step:
1/ Money Creates Freedom: Freedom to do what you want when you want. It gives you freedom over your choices and energy. Buying your time back is the most valuable investment you can make.
2/ Reduces Stress and Anxiety: If you have binged the podcast you will hear me say these 4 words all the time. Wealth is self-care. So stack some cash, put on a robe, and fan yourself with $100 bills.
The more money you have (and the lower your monthly financial burdens are) the less stress you will feel.
3/ Creates Opportunity for Your Family: Privilege is real. Perhaps you didn’t grow up in a great situation. YOU can change that for your family tree. This is the most powerful thing you can do for your family. You just have to learn this stuff.
The good thing is, professor Andrew is cookin’ right now and school’s in session.
4/ Reduces Hardship on Your family: Wealth allows you to provide a better life for your kids.
5/ Increases Your Sense of Accomplishment and Satisfaction: I don’t know about you, but I need to make progress on something. I’m a fiend for dopamine. Accomplishment gives me that. I become unhappy when I don’t progress physically, mentally, and emotionally.
So, I treat wealth building like a game at times. It helps provide that sense of accomplishment.
6/ Allows You to make an Impact with Giving: People who give back are proven to be happier. Giving is a major reason I choose to build wealth. Imagine if every person learned how to build wealth and was able to donate 10% of their income to the causes they believed in. We would get a lot more done.
7/ Creates Opportunity: When you have more money, you can take advantage of opportunities that arise. Providing more security to your life. This cycle begins to repeat itself.
In the News 📰
Knock, Knock, Zacchaeus the tax collector is here!
Congress passed The Inflation Reduction Act. Right now it looks like a fancy title with some policies that may impact your bankroll in a negative way. Especially when it comes to the tax man/woman comes a-knockin'.
August 15th 2022
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10-second Tip of the Week 🚀
If you are trying to figure out how much to save in your emergency fund ask yourself. How long will it take me to get another job? Save that timeframes expenses + one month.
3 Things You Need to Know to Retire Early
What to Do Next?
Listen to our Latest Podcast Episode!
Here's What to Do if Your Student Loans Have been Forgiven
Master Money
I teach you how to master your money in less than 5 minutes per week. I am the host of The Personal Finance Podcast with 400K downloads monthly and the Founder of Master Money.