WEBVTT - Increase your money's happiness ROI

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<v Speaker 1>Welcome to Before Breakfast, a production of iHeartRadio. Good morning.

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<v Speaker 1>This is Laura. Welcome to the Before Breakfast podcast. Today's

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<v Speaker 1>tip is to increase the happiness you get from your spending.

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<v Speaker 1>As you are choosing where to put your money, consider

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<v Speaker 1>where you get the most happiness bang for your buck.

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<v Speaker 1>So today's tip comes from a comment I read on

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<v Speaker 1>the Frugal Girl blog. I know a lot of people

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<v Speaker 1>who follow my work also follow Kristen, who has been

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<v Speaker 1>a guest on this show. If you don't, you might

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<v Speaker 1>like to follow her. Her blog is all about living

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<v Speaker 1>intentionally in accordance with our values. Kristen is a naturally

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<v Speaker 1>thrifty person who always spends less than she earns. So

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<v Speaker 1>she wrote a recent blog post on whether she actually

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<v Speaker 1>needed a budget. the straightforward answer is probably no. If

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<v Speaker 1>she is saving, and set costs are less than what

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<v Speaker 1>is coming in, then it is probably not necessary to

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<v Speaker 1>specifically say she should spend, let's say, $ 500 to $ 600

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<v Speaker 1>a month on groceries. But anyway, she invited readers to

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<v Speaker 1>weigh in. One commenter, Elizabeth Frost, who blogs at Optimistic Musings,

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<v Speaker 1>commented that a benefit of tracking spending for her is seeing,

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<v Speaker 1>as she puts it, where I get the highest ROI

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<v Speaker 1>on spending. She went on to say, I think it

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<v Speaker 1>has less to do with a budget and more about

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<v Speaker 1>determining what categories of spending out give the highest return

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<v Speaker 1>in terms of joy or relief. What is something that

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<v Speaker 1>brings you real joy that can be purchased? Whether it's

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<v Speaker 1>in time back in your pocket, like lawn care or

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<v Speaker 1>car detailing, or a tangible item, a cute Snoopy sweater.

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<v Speaker 1>I think Elizabeth is onto something. None of us should

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<v Speaker 1>spend more than we have, and for many people, a

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<v Speaker 1>budget can help with that. But spending itself isn't bad.

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<v Speaker 1>Not all spending is equivalent. Some spending benefits you a

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<v Speaker 1>lot more than other spending does. So it pays to

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<v Speaker 1>figure out what kind of spending gives you the biggest

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<v Speaker 1>return on investment, or ROI. This is different for everyone.

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<v Speaker 1>Some people love to decorate their homes in elegant ways.

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<v Speaker 1>Some people love to travel. Some people love fancy dinners out.

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<v Speaker 1>Others love to buy gifts. But there are certain categories

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<v Speaker 1>that probably have a big return on investment for many

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<v Speaker 1>of us. One is building connection with people. These are

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<v Speaker 1>often experiences like taking your kids to an amusement park

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<v Speaker 1>or going with friends to the symphony But there might

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<v Speaker 1>be objects that enable connection too. I know having a

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<v Speaker 1>backyard pool and hot tub has allowed my family to

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<v Speaker 1>hang out together on summer nights in a way that

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<v Speaker 1>we might not if we couldn't just go walk outside

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<v Speaker 1>and jump in. Another category with a big happiness ROI

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<v Speaker 1>is reducing stress. As you look at your life, figure

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<v Speaker 1>out if there is something that has you wishing time

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<v Speaker 1>away or that has you dreading a task. Can you

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<v Speaker 1>change that? Maybe it's hiring a housekeeper so you don't

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<v Speaker 1>have to spend your weekends cleaning. Maybe it's hiring a

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<v Speaker 1>sitter to watch your toddler so you can go to

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<v Speaker 1>a big kid's event and actually watch your kid, instead

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<v Speaker 1>of chasing a toddler around on the sidelines. And finally,

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<v Speaker 1>reducing daily friction or elevating a daily task can give

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<v Speaker 1>a boost just because these things happen so frequently. I

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<v Speaker 1>know I have gotten a ridiculous happiness ROI by buying

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<v Speaker 1>enough nice running socks that I can exercise every day

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<v Speaker 1>and still do laundry once a week. A wonderfully fragrant

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<v Speaker 1>shampoo can make your morning shower feel like a spa.

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<v Speaker 1>If you have extra cash in your life, I'd say

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<v Speaker 1>spending $ 20 on a bottle of shampoo that made your

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<v Speaker 1>mornings magical versus $ 8 for one that didn't would be

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<v Speaker 1>a good idea. Now, again, there is a real negative

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<v Speaker 1>happiness ROI to spending more than you can afford. We

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<v Speaker 1>want to stay within these parameters. But within that amount,

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<v Speaker 1>whatever it is, you might let yourself be guided by

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<v Speaker 1>Elizabeth's question. What spending gives you the most happiness or relief?

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<v Speaker 1>For the next few weeks, pay attention to where you

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<v Speaker 1>get the biggest ROI on your spending. Then, going forward,

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<v Speaker 1>Let that help you decide how to spend your money.

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<v Speaker 1>Where do you get the highest happiness ROI on your spending?

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<v Speaker 1>You can let me know at laura at lauravandercam.com. In

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<v Speaker 1>the meantime, this is Laura. Thanks for listening. And here's

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<v Speaker 1>to making the most of our time. Thanks for listening

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<v Speaker 1>to Before Breakfast. If you've got questions, ideas, or feedback,

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<v Speaker 1>you can reach me at laura at lauravandercam.com. Before Breakfast

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<v Speaker 1>is a production of iHeartMedia. For more podcasts from iHeartMedia,

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<v Speaker 1>please visit the iHeartRadio app, Apple Podcasts, or wherever you

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<v Speaker 1>listen to your favorite shows. Thank you.