Improve Your Budget by Focusing on How Satisfied Your Money Is
When you buy something, you may want to think about how much you are saving compared to a similar deal elsewhere. Instead, consider how much fun you are buying for yourself.
Most people who sell things want you to believe that a “deal” is measured by how much the thing is worth compared to other similar things. This 3,000 square foot home is a good deal because the other 3,000 square foot homes are more expensive and look less pretty. Sounds reasonable, right? However, if a 3,000 square foot home doesn’t add more happiness to your life than a 1,000 square foot home, you will be ripped off. As Half Banked’s personal finance blog explains:
When you focus on squeezing more out of your budget, you are optimizing not for money spent, but for more important things. Things like laughter, love, friendship, health and family. You focus on the things that really matter to you, whatever they are.
This concept applies to most of the things you spend money on. For example, many of us spend money on Netflix subscriptions. When money becomes scarce, first of all you need to relate to entertainment. However, if it brings you a lot of satisfaction , you may find something else to cut back on without lowering your happiness.
Two ways to cut your budget | Half Bank Account Via Rockstar Finance