A lot of people are saying that money cannot buy happiness. As notable character Gordon Gekko said in the movie Wall Street: Money Never Sleeps (2010), money is not the prime asset in life. However true these famous lines are, it does not change the fact that it is necessary to survive daily, meet basic needs, and achieve goals–which ultimately leads a person to experience a happier life.
When a person is able to make a listverse of his daily needs and acquire excellent saving habits, it is safe to assume that s/he has access to food, clothing, shelter, water, electricity, and such. Just considering basic needs alone helps determine the general direction of one’s life. In psychology, Abraham Maslow’s Hierarchy of Needs presents levels. The very foundation of which is physiological needs, where the basic needs could be found. If all of these are satisfied, it means that at the very least, there must be satisfaction on the part of the individual. This could then be the start of a life filled with happiness; a stepping stone, so to speak.
Saving habits can also be associated to the path towards retirement. As early as your 20’s, you should already be thinking long-term. If a person is guaranteed to have money even after employment, it lessens the probability of experiencing stress, thus a higher likelihood of a happier life.
Of the many end goals in having life savings, one distinct aspect is that of financial freedom. Basically, an individual does not have to actively work for basic necessities since s/he already has enough personal wealth. Realizing the fact that a person has achieved financial independence could lead to a happier life simply because it signifies that assets are enough to cover daily expenditures.
Money for a rainy day is a result of effective and efficient saving habits. In case of accidents and hospitalizations, the set aside money can be used to help in the recovery. Life becomes less complicated to deal with given that there is available disposable money.
With a mindset geared towards savings, reaching personal and career goals can also be done. For example, if it has been a lifelong dream of yours to see the Eiffel Tower or pursue a postgraduate degree, the money could be utilized for those purposes. Successfully completing ambitions give a sense of satisfaction or contentment.