![]() ![]() On the question of defining how much money is “enough” for us, she writes – ![]() Continuing with the subject of personal financial planning, here is a Morningstar post titled It’s Time to Think Big where the author suggests using this quiet period to introspect and improve our financial plans in a big-picture way.It is an important concept to grasp when it comes to understanding happiness, which we often lose in forever chasing rainbows.īy the way, here is a quadrant I drew recently on how to get rich without being on the hedonic treadmill (for long) – “Hedonic treadmill” is basically a theory positing that people repeatedly return to their baseline level of happiness, regardless of what happens to them. ![]() Get those right, and those $5 lattes become pretty irrelevant.īasically, the advice is this – avoid the hedonic treadmill and you will be much better off in your financial life. Experiences tend to beat material goods in terms of money well spent.įirst, the big things: Your education, your career choice, your work ethic, who you marry, who you work with, your skill set, your compensation, your health, your outlook, how you think about the world and the commitment you make to yourself about continually learning and improving. Money can bring security, comfort and happiness, but beyond a certain point returns on having more of it diminish rapidly.ĥ. Spending should always be a function of what you can afford, not a slavish devotion to some puritan ideal.Ĥ. Don’t fritter it away on things that don’t matter very much.ģ. We all only have so much internal discipline, a consequence of limited mental bandwidth. Focus on the big things the little things will take care of themselvesĢ. I am not, nor have I ever been, a fan of “sustained and disciplined frugality.” With that said, here’s what to keep in mind:ġ. Here is Barry’s point of view on the subject of “frugality” –
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