Mindset

7 Habits of Financially Happy People

Do you the traits to be financially happy?

To be financially happy, you must have better money habits.

Many people find being financially happy an elusive goal. It seems like everyone wants to be rich, but few people actually achieve happiness.

I had my share of money mistakes.

Most stemmed from believing I would be happier once I spent X and got Y. In this pursuit of happiness, I fell for bogus credit card incentives, spent way more than I should on a car, and amassed over $110,000 in student loan debt. None of these made me happier; I was just more stressed.

Eventually, I learned I needed better financial skills and shifted to a better money mindset.

It started when I read Stephen R. Covey’s book The Seven Habits of Highly Effective People.

The self-help book focused on mindset and elaborated on different perspectives. The idea is that two people can experience the same thing but differently.

I was curious about people who had the same amounts of money but drastically different relationships with money.

In the book, Covey explores 7 habits that make people highly effective.

In my quest for happiness and financial independence, I’ve learned to apply these seven habits to help me live a richer, happier life.

In this article, I share the 7 habits of financially happy people.

1. Lifestyle Focused 

Financially happy people set clear life goals. It’s important to have a clearly defined lifestyle goal. These aren’t financial goals like debt payoff or having an emergency fund.

A lifestyle goal is how you envision the type of life you want to live. We can talk about setting financial goals, but money only provides the avenue to live a certain lifestyle. 

If you cannot articulate the lifestyle you want, then getting it is arguably impossible. 

Imagine being given all the tools needed to drive cross-country from the East Coast to the West Coast. You feel the excitement of the journey ahead, knowing you have the resources to make it 3000 miles.

What happens if you reached Seattle but were aiming for Los Angeles? You’d be surprised that the cloudy overcast may impede your sun-soaking lifestyle.

2. Proactive

We might think we are proactive about most things important to us. But I’ve found that when it comes to money issues, the opposite is true. People tend to wait to pull credit reports until they’ve been denied credit or start thinking about savings when money is needed to pay bills.

Proactive people monitor credit reports and proactively call their creditors when a situation impacts their ability to make payments.

Find a credit report monitoring app to help you.

3. Organized

A step in controlling your money situation is organizing.

It’s about knowing where everything is, how long you need to hold onto documents, and when to shred them. It’s so much easier to be happy when you’re not running around looking for documents.

Organization means a money management system that makes things easier to track, store, and find when needed. It means organizing your time, home, computer desktop, and online accounts. 

4. Minimalist

Financial minimalism is about simplicity. Be happier when you’re not tracking dozens of financial accounts. Financially happy people have primary and secondary bank accounts and a money app to track and monitor their financial lives.

Use budgeting apps that aggregate your financial accounts.

5. Learner

Curiosity isn’t seen as a liability but an asset in growing knowledge.

It sounds less stressful to be told what to do, but that hands the control of your money to someone else. A person who constantly seeks financial understanding has more power than those who completely depend on others to make financial decisions. 

There is a saying that “ignorance is bliss.” But, when it comes to your money, ignorance is stress. The more you know about money, the better decisions you make. It lessens the amount of future stress.

Have you taken the financial wellness kickstart email series? Enroll here.

6. Communicates

It’s important to communicate with your partner, creditors, employers, and others who directly impact your financial well-being. Often, we under-communicate, which leads to misunderstandings and arguments about money. 

Have money conversations. Choose to be open about your financial goals and challenges. You will be surprised by the people who can provide expertise and resources.

7. Emotional intelligence

Let’s face it: emotions are a part of who we are. Become aware of the feelings that compel you to spend, whether to keep up with the Joneses or as retail therapy.

Emotions are a powerful thing. It affects your financial decision-making. And guess what? Marketing executives have learned to use our emotions to compel us to buy goods we don’t need.

Becoming financially happy requires emotional intelligence.

Do you have the habits to be financially happy?

Take time to assess your financial situation and money habits. Then, consider these 7 traits of financially happy people.

Jason Vitug

Jason Vitug is a bestselling author, entrepreneur, and founder of phroogal.com and thesmilelifestyle.com. His purpose to help others live their best lives through experiential and purposeful living. Jason is also a certified yoga teacher and breathwork specialist and has traveled to over 40 countries.

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