Increase your money's happiness ROI

0:03Speaker 1:Welcome to Before Breakfast, a production of iHeartRadio. Good morning. This is Laura. Welcome to the Before Breakfast podcast. Today's tip is to increase the happiness you get from your spending. As you are choosing where to put your money, consider where you get the most happiness bang for your buck. So today's tip comes from a comment I read on the Frugal Girl blog. I know a lot of people who follow my work also follow Kristen, who has been a guest on this show. If you don't, you might like to follow her. Her blog is all about living intentionally in accordance with our values. Kristen is a naturally thrifty person who always spends less than she earns. So she wrote a recent blog post on whether she actually needed a budget. the straightforward answer is probably no. If she is saving, and set costs are less than what is coming in, then it is probably not necessary to specifically say she should spend, let's say, $ 500 to $ 600 a month on groceries. But anyway, she invited readers to weigh in. One commenter, Elizabeth Frost, who blogs at Optimistic Musings, commented that a benefit of tracking spending for her is seeing,

1:27Speaker 1:as she puts it, where I get the highest ROI on spending. She went on to say, I think it has less to do with a budget and more about determining what categories of spending out give the highest return in terms of joy or relief. What is something that brings you real joy that can be purchased? Whether it's in time back in your pocket, like lawn care or car detailing, or a tangible item, a cute Snoopy sweater. I think Elizabeth is onto something. None of us should spend more than we have, and for many people, a budget can help with that. But spending itself isn't bad.

2:08Speaker 1:Not all spending is equivalent. Some spending benefits you a lot more than other spending does. So it pays to figure out what kind of spending gives you the biggest return on investment, or ROI. This is different for everyone. Some people love to decorate their homes in elegant ways. Some people love to travel. Some people love fancy dinners out. Others love to buy gifts. But there are certain categories that probably have a big return on investment for many of us. One is building connection with people. These are often experiences like taking your kids to an amusement park or going with friends to the symphony But there might be objects that enable connection too. I know having a backyard pool and hot tub has allowed my family to hang out together on summer nights in a way that we might not if we couldn't just go walk outside and jump in. Another category with a big happiness ROI is reducing stress. As you look at your life, figure out if there is something that has you wishing time away or that has you dreading a task. Can you change that? Maybe it's hiring a housekeeper so you don't

3:27Speaker 1:have to spend your weekends cleaning. Maybe it's hiring a sitter to watch your toddler so you can go to a big kid's event and actually watch your kid, instead of chasing a toddler around on the sidelines. And finally, reducing daily friction or elevating a daily task can give a boost just because these things happen so frequently. I know I have gotten a ridiculous happiness ROI by buying enough nice running socks that I can exercise every day and still do laundry once a week. A wonderfully fragrant shampoo can make your morning shower feel like a spa.

4:07Speaker 1:If you have extra cash in your life, I'd say spending $ 20 on a bottle of shampoo that made your mornings magical versus $ 8 for one that didn't would be a good idea. Now, again, there is a real negative happiness ROI to spending more than you can afford. We want to stay within these parameters. But within that amount, whatever it is, you might let yourself be guided by Elizabeth's question. What spending gives you the most happiness or relief? For the next few weeks, pay attention to where you get the biggest ROI on your spending. Then, going forward, Let that help you decide how to spend your money.

4:53Speaker 1:Where do you get the highest happiness ROI on your spending? You can let me know at laura at lauravandercam.com. In the meantime, this is Laura. Thanks for listening. And here's to making the most of our time. Thanks for listening to Before Breakfast. If you've got questions, ideas, or feedback, you can reach me at laura at lauravandercam.com. Before Breakfast is a production of iHeartMedia. For more podcasts from iHeartMedia, please visit the iHeartRadio app, Apple Podcasts, or wherever you listen to your favorite shows. Thank you.