Improve Your Budget By Focusing On How Much Satisfaction Your Money Buys

Improve Your Budget By Focusing On How Much Satisfaction Your Money Buys

When you're buying something, you might think about how much you're saving versus a similar deal somewhere else. Instead, consider how much fulfillment you're buying for yourself.

Most people who sell things want you to believe that a "deal" is measured by how much this thing is worth compared to other similar things. This 280 square metre house is a good deal because other 280 square meter houses are more expensive and don't look as nice. Seems reasonable, right? However, if a 3,000 square foot house isn't adding any more happiness to your life than a 100 square metre house, you're getting ripped off. As personal finance blog Half Banked explains:

When you're focused on squeezing more out of your budget, you're not optimising for money spent, you're optimising for the more important things. Things like laughter, and love, and friendship, and health, and family. You're focused on the things that really matter to you, whatever they are.

This concept can apply to most things you spend money on. For example, many of us spend money on a Netflix subscription. When money gets tight, it's easy to see entertainment as the first thing to cut. However, if it's bringing you a lot of fulfillment, you can find something else to cut without bringing down your happiness level.

The Two Ways You Can Squeeze Your Budget [Half Banked]


    Using property in the example in the article is probably not ideal as most see property as a financial investment for long term gain, not a source of entertainment or personal satisfaction.

      If you're buying an investment property, then sure. But the article is referring to property that you buy to live in yourself as your home, which can be a massive source of personal satisfaction.

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