Does Spending Money Make Us Feel Good?

You’ve heard of the saying, “money can’t buy happiness”. But do you believe it? We work all day to earn it and are constantly spending it, but is there a certain amount that would make you happy?  It’s one of the most common issues couples fight about, and a reason why people switch jobs and a top consideration when they ultimately accept. And besides, who doesn’t want to win the lottery?

But there are times where we feel like we are spending money faster than we are making it. And not to mention there are many unexpected things in our lives that come up and cost us. Whether you’re looking to get yourself out of a financial bind or help keep you afloat until your next paycheck, get your pay day loan online. Our payday loans are not intended to provide a long-term financial solution – they are intended to solve urgent but temporary cash-flow needs, especially in those times where we can’t keep up financially. That’s why we like to let our customers know about borrowing money the GoDay way and have made it easy for you by giving you the reasons as to why you should be choosing GoDay the next time you’re in a financial bind. Because your finances can be stressful and not make us feel good.

Fear of Missing Out or FOMO

Do you suffer from “FOMO” or the “Fear of Missing Out”? Don’t worry, it’s not just you. This is something very common, because who wants to be the person missing out on something fun? What you don’t realize is that these events and decisions can often lead to or have financial implications. Who doesn’t want to be traveling the world or having the latest and great gadget? But is it financially feasible? Splurging here and there is one thing, but constantly being off budget and not worrying about your credit card statement because you’re living in the moment is another thing.

According to Tangerine, twenty-six percent of Canadians admitted to suffering from “FOMO”.  Of that demographic, forty-eight percent are millennial consumers, while only nine percent are of the baby boomer generation. Surprised? This fear of missing out has been statistically proven to have purchase power as twenty-five percent of those surveyed saying that “FOMO” is their main motivation to shop. This is an alarming statistic because if this kind of spending goes unchecked, shopping habits and random purchases can quickly get out of hand.

Eliminating Financial Stress

Financial stress can often start off very small or innocent.  A single missed credit card payment or an irresponsible splurge on a purchase you can’t afford. But before you know it, financial stress starts to snowball into something bigger. At GoDay one of our missions is to help relieve you of financial stress by getting you back on track financially, not further behind. So how do you get that dark cloud of financial worry to stop following you around? One of the main reasons that money has been known to increase happiness is that it takes a certain amount of money to feel financially secure. Financial concerns have been proven to cause anxiety. Having enough money means no anxiety when going grocery shopping, going out to eat or paying your bills. Remembering and being appreciative of the fact that you are free to purchase things, though, will make you happier even after it has settled in as normal amount of your finances. It is one thing to be a vigilant of your financial situation, but it can be very difficult when you start to experience emotional, psychological, and physical symptoms of stress and anxiety because of your financial situation. If you’re experiencing financial stress, you need to do something about it. Fundamentally, having enough money to buy these basic necessities will no doubt increase your happiness levels.

Buy Experiences

When it comes to spending your money and how it makes us feel, it can give you many things, and not all of them have to be physical items, but sometimes the ones that can make us the happiest are the dollars that give us the opportunity to have memorable experiences. So rather than buying the latest gadget, Fast Company has broken down the science  on why you should spend your money on experiences, not things and suggests you’ll get more happiness spending money on experiences like going to art exhibits, doing outdoor activities, learning a new skill, or traveling.  Although you do not need a lot of money to have certain experiences, for certain things like to travel the world, the more money you have can make a difference. These experiences that you pay for should be ones that you genuinely enjoy, not just things that everyone else is doing. Want to go see your favourite sports team play? See the latest musical? Go for it! Those are the experiences you will truly enjoy spending your money on. Spending money can also lead you to learn new things. Picking up new skills and finding hobbies that you love doing will also make you happier.

Social Media

Social media has not helped us with the “FOMO” we’ve mentioned above, especially when you see what everyone else is doing and posting about. But wanting to do something or eat somewhere because you saw it posted on social media. And in the end – will spending money on those things just for the likes on social media really make you happy? Something else that’s very common is seeing social media business ads and brands active on some social media profiles, but not others.

Social media and the web, in general, has become an endless resource for information and reviews. And people judge companies based on their social media presence, how active they are, how they’re promoting, because believe it or not- social media can make you spend money and has become a new shopping tool for businesses. Have you purchased something because you’ve seen it on social media? According to Inc, nearly 40 percent of American adults with social media accounts say that seeing other people’s purchases and vacations on social media have prompted them to look into similar purchases or vacations, and more than 11 percent spent money after seeing someone else’s post, according to a new poll by the American Institute of Certified Public Accountants. More than 20 percent of Americans adults with social media accounts say they have chosen activity or purchases based on how friends and family will view their post about it. As predicted, younger people are more likely to factor social media reactions into their purchasing decisions, with millennials more than twice as likely to say that the reaction of friends and family on social media affected their buying habits. Social media is used for many great things, but it shouldn’t be used to put yourself in debt just to fit in for the likes.

Wants vs. Needs

Do you know the difference between a financial want and financial need? Financial wants are the items and things we desire, compared to our financial needs which our financial obligations such as bills, debts and everything else life throws at us that we need to pay for. Which is also usually the things that don’t make us happy and would rather be putting our hard earned dollars isn’t something else. And on top of that we need to be saving! So how do you not go over budget and still but also have enough fun without living paycheck to paycheck? It’s a trick everyone is learning to master, and there are more and more resources out there no matter what your financial responsibilities are. Our favourite trick in the book though is to always keep track, it’s the best way to stay on budget to make sure you’re living within your means and having money for both those financial wants and needs. Do you know how to live within your means? It sounds easy, right? Well, you would be surprised as to how much people are constantly overspending and thinking that things are within their means when they surprisingly aren’t. This is very common when it comes to materialistic goods, the ones we’re buying because we think it will make us happy.  Living in a society where the latest gadget is a “must have” and brands have done a very good job at making us feel we “need” these things is one of the ways people are constantly overspending and finding themselves in debt. We suggest you stop overspending and evaluate the things that are a want vs. need and create a budget so you still have fun.

Spend Intentionally

One of the most effective ways to reduce financial stress and make your money more meaningful is to change the way you spend. Ask yourself “why” when you’re spending. Are you purchasing items impulsively? Is this truly a need, or a want? How will this item add value to your life? Asking yourself these types of questions forces you to engage with “things” in a much deeper, more meaningful way. And by being mindful about the items your purchasing will help create the long term happiness we discussed earlier.

Paying for Convenience

There are times where we pay for something we know is a premium, because it will result in happiness. And that’s okay, with the right budget. Things like having someone come in and clean your house for you, taking a cab instead of transit, etc. A lot of people may think that they don’t have the financial freedom to pay for these types of things or services. But are you willing to pay for more time? These time-saving services may be seen as luxury items, but there are many ways to readjust your budget and in the end could up saving you money (based on the service) and get back the time you would normally put into these things. At the end of the day, it comes down to what are you willing to pay for more time?

Stop Living In The Moment

A philosophy we all are guilty of, but it can lead to future financial problems. When you’re swiping your credit card and not planning that kind of spending is how we go over budget. It’s one thing to grab a spontaneous coffee, it may make you happy at the time, but every day those little things add up and leave you paying for expenses at the end of the month when you look at your statement and forgot you even made those purchases. Instead, when going out, try and limit your budget and impromptu coffee trips. You’ll thank yourself for not having to cover those expenses when your credit card bill arrives.

Perhaps the most important lesson (financial or not) is that money clearly matters- it’s the currency of our lives, but it shouldn’t be the center of our lives or what we revolve our lives around. Once we have enough money to feel comfortable, this is where we begin to be happy and less financially stressed. Learn more about how GoDay is making it easier for you to handle your finances.