1 00:00:00,040 --> 00:00:03,240 Speaker 1: Welcome to Before Breakfast, a production of I Heart Radio. 2 00:00:08,920 --> 00:00:14,960 Speaker 1: Good Morning, This is Laura. Welcome to the Before Breakfast podcast. 3 00:00:16,120 --> 00:00:21,240 Speaker 1: Today's tip is to budget for happiness. While it might 4 00:00:21,280 --> 00:00:24,920 Speaker 1: be considered normal to spend certain proportions of your income 5 00:00:25,280 --> 00:00:29,240 Speaker 1: on certain categories, there is no law that says you 6 00:00:29,400 --> 00:00:34,519 Speaker 1: have to do that. Consciously, choosing to spend less on 7 00:00:34,640 --> 00:00:39,160 Speaker 1: certain big categories can open up space for all kinds 8 00:00:39,200 --> 00:00:45,720 Speaker 1: of happiness if you are smart about it. Lots of 9 00:00:45,720 --> 00:00:49,040 Speaker 1: folks resolved to take control of their finances in the 10 00:00:49,040 --> 00:00:53,480 Speaker 1: new year. When the holiday spending bills hit in January, 11 00:00:54,160 --> 00:00:59,080 Speaker 1: it can definitely be a sobering moment. People who are 12 00:00:59,120 --> 00:01:01,920 Speaker 1: new to budget tend to go online to search for 13 00:01:02,080 --> 00:01:07,040 Speaker 1: sample budgets, and these tend to suggest spending somewhere around 14 00:01:07,920 --> 00:01:13,560 Speaker 1: of your income on housing and ten pc on transportation. Now, 15 00:01:13,600 --> 00:01:17,560 Speaker 1: there is nothing wrong with these particular numbers, but it 16 00:01:17,840 --> 00:01:21,440 Speaker 1: is a little funny if you think about it. People 17 00:01:21,560 --> 00:01:27,040 Speaker 1: make wildly varying amounts of money. Why should someone who 18 00:01:27,080 --> 00:01:32,479 Speaker 1: makes dollars a year and someone who makes five thousand 19 00:01:32,560 --> 00:01:37,920 Speaker 1: dollars a year both spend on housing. A person with 20 00:01:37,959 --> 00:01:41,240 Speaker 1: a more modest household income might need to spend a 21 00:01:41,319 --> 00:01:46,720 Speaker 1: fairly large percentage to find someplace safe and comfortable, but 22 00:01:46,840 --> 00:01:52,040 Speaker 1: someone with a higher income could find someplace safe, comfortable, 23 00:01:52,640 --> 00:01:57,960 Speaker 1: and quite nice for a lower percentage. Choosing to do 24 00:01:58,080 --> 00:02:01,960 Speaker 1: so would open up space for all sorts of other priorities. 25 00:02:03,080 --> 00:02:05,720 Speaker 1: In a recent episode of Best of Both Worlds, my 26 00:02:05,800 --> 00:02:09,960 Speaker 1: other podcast, my co host Sarah hart Unger mentioned that 27 00:02:10,040 --> 00:02:13,360 Speaker 1: her family is budgeting more money for travel this year 28 00:02:14,080 --> 00:02:17,600 Speaker 1: then for housing. Now. It would be pretty tough to 29 00:02:17,680 --> 00:02:20,960 Speaker 1: do that if they were spending their income on housing, 30 00:02:22,000 --> 00:02:26,040 Speaker 1: but they aren't. She and her husband elected to purchase 31 00:02:26,080 --> 00:02:29,480 Speaker 1: a home that was considerably less expensive than they could 32 00:02:29,520 --> 00:02:32,840 Speaker 1: have afforded. As a result, they can go to some 33 00:02:32,960 --> 00:02:38,800 Speaker 1: fabulous destinations while still staying on track with savings goals. 34 00:02:39,440 --> 00:02:42,800 Speaker 1: The conversation doesn't go towards should we take this cruise 35 00:02:42,880 --> 00:02:46,240 Speaker 1: or should we save for retirement? They can do both. 36 00:02:47,760 --> 00:02:52,560 Speaker 1: In general, spending money to buy experiences, to buy connection, 37 00:02:53,400 --> 00:02:58,239 Speaker 1: and to buy time tends to make people happiest, and 38 00:02:58,400 --> 00:03:02,400 Speaker 1: most normal budgets these all tend to be smaller categories 39 00:03:03,040 --> 00:03:06,280 Speaker 1: money for activities and travel, or to get together with 40 00:03:06,360 --> 00:03:10,200 Speaker 1: family and friends, or to pay for date night, babysitting 41 00:03:10,880 --> 00:03:16,600 Speaker 1: or housekeeping services if we budget for happiness, though, maybe 42 00:03:16,600 --> 00:03:21,119 Speaker 1: they should be larger categories. People with more modest incomes 43 00:03:21,160 --> 00:03:25,480 Speaker 1: don't have much flexibility, of course, but as people earn more, 44 00:03:26,480 --> 00:03:31,120 Speaker 1: keeping basic expenses low allows for indulging in quite a 45 00:03:31,120 --> 00:03:35,240 Speaker 1: few adventures and pleasures, the sorts of things that can 46 00:03:35,280 --> 00:03:39,600 Speaker 1: make life feel pretty blissful while still living within your 47 00:03:39,600 --> 00:03:44,680 Speaker 1: means and saving for the future. Now, to be sure, 48 00:03:44,760 --> 00:03:48,120 Speaker 1: most people can't immediately change how much they spend on 49 00:03:48,200 --> 00:03:52,440 Speaker 1: housing or transportation for that matter, but if the goal 50 00:03:52,560 --> 00:03:56,720 Speaker 1: is budgeting for happiness over the long term, it might 51 00:03:56,760 --> 00:04:01,119 Speaker 1: be possible. One straightforward way to do this is that 52 00:04:01,560 --> 00:04:06,240 Speaker 1: if your income rises, you don't automatically keep the same percentages. 53 00:04:07,520 --> 00:04:10,760 Speaker 1: A better job might mean you could buy a nicer car, 54 00:04:12,200 --> 00:04:15,640 Speaker 1: or you could keep the same car and throw fabulous 55 00:04:15,680 --> 00:04:18,880 Speaker 1: parties for family and friends every month in lieu of 56 00:04:18,920 --> 00:04:23,120 Speaker 1: a car payment. There's a reasonable chance that the latter 57 00:04:23,120 --> 00:04:27,000 Speaker 1: would lead to a lot more joy and connection, and 58 00:04:27,080 --> 00:04:30,480 Speaker 1: the old car it will most likely still get you 59 00:04:30,520 --> 00:04:35,799 Speaker 1: where you need to go. In the meantime. This is Laura, 60 00:04:36,920 --> 00:04:41,520 Speaker 1: Thanks for listening, and here's to making the most of 61 00:04:41,600 --> 00:04:50,839 Speaker 1: our time. Hey, everybody, I'd love to hear from you. 62 00:04:50,839 --> 00:04:53,760 Speaker 1: You can send me your tips, your questions, or anything else. 63 00:04:54,480 --> 00:04:58,080 Speaker 1: Just connect with me on Twitter, Facebook and Instagram at 64 00:04:58,120 --> 00:05:02,960 Speaker 1: Before Breakfast Pod. That's b E the number four, then 65 00:05:03,040 --> 00:05:06,440 Speaker 1: Breakfast p o D. You can also shoot me an 66 00:05:06,440 --> 00:05:10,760 Speaker 1: email at Before Breakfast podcast at iHeartMedia dot com that 67 00:05:10,880 --> 00:05:14,120 Speaker 1: Before Breakfast is spelled out with all the letters. Thanks 68 00:05:14,120 --> 00:05:22,040 Speaker 1: so much, I look forward to staying in touch. Before 69 00:05:22,080 --> 00:05:25,120 Speaker 1: Breakfast is a production of I heart Radio. For more 70 00:05:25,160 --> 00:05:28,640 Speaker 1: podcasts from I heart Radio, visit the i heart Radio app, 71 00:05:28,920 --> 00:05:32,120 Speaker 1: Apple Podcasts, or wherever you listen to your favorite shows.