top of page

How Can I Be Happy with Money?

Updated: May 15, 2023

Money plays a crucial role in our lives. It provides us with the means to fulfill our basic needs, pursue our dreams, and enjoy life's pleasures. However, the relationship between money and happiness is complex. Many people believe that having more money will automatically lead to greater happiness, but research has shown that it's not just about the amount of money we have, but how we manage and use it that truly impacts our happiness.

In this blog post, we will explore practical tips for achieving financial happiness, with a focus on credit card debt, credit card rewards, and taking small steps to get started on the path to financial well-being.

Credit card debt leads to unhappiness

One of the biggest obstacles to financial happiness is credit card debt. Credit cards can provide convenient access to funds for purchases, but they can also lead to a cycle of debt that can cause stress, anxiety, and unhappiness.

Credit card debt can accumulate quickly if not managed properly. High-interest rates, late fees, and penalties can make it difficult to keep up with payments, resulting in a never-ending cycle of debt. The stress and worry caused by credit card debt can take a toll on our mental and emotional well-being, impacting our overall happiness.

To be happy with your money, it's crucial to take control of your credit card debt. Here are some tips to help you do that:

  1. Create a budget: Start by tracking your income and expenses to get a clear picture of your financial situation. Create a budget that includes all your monthly expenses, including credit card payments, and stick to it. Make sure to allocate enough money towards paying off your credit card debt each month.

  2. Prioritize debt repayment: If you have multiple credit cards with balances, prioritize paying off the one with the highest interest rate first, while making minimum payments on the others. Once the first card is paid off, move on to the next one, and so on. This strategy, known as the debt avalanche method, can help you pay off your credit card debt faster and save money on interest.

  3. The debt snowball method is similar but slightly different. It is where you focus on your card or debt with the lowest balance. Focus all your extra funds towards that debt and make minimum payments on the rest. Then build up that snowball as you pay off your debt or credit cards and roll all that extra money toward your other debt. This can help a lot when it comes to staying motivated when paying off debt.

  4. Cut expenses: Look for ways to reduce your expenses and free up more money to put towards debt repayment. This could mean cutting back on discretionary spending, finding ways to save on everyday expenses, or even considering a side job or freelancing to earn extra income.

  5. Negotiate with creditors: If you're struggling to make payments on your credit cards, don't be afraid to reach out to your creditors and negotiate. They may be willing to lower your interest rate, waive late fees, or work out a payment plan that fits your budget. It's worth a try to alleviate some of the financial stress.

  6. Seek professional help if needed: If you're feeling overwhelmed by credit card debt, don't hesitate to seek professional help. A financial coach can help you build your plan to pay off debt and get back on track.

By taking control of your credit card debt, you can reduce financial stress and create a solid foundation for financial happiness.

Credit cards aren't all bad news. They can lead to happiness.

While credit card debt can be a source of unhappiness, credit card rewards can actually contribute to happiness by providing free perks and benefits. Many credit cards offer rewards programs that allow you to earn cash back, travel points, or other perks for using your card for everyday purchases.

Here are some ways credit card rewards can contribute to your happiness:

  1. Cash back rewards: Cash back rewards can provide a sense of satisfaction when you see money coming back to you for purchases you would have made anyway. You can use the cash back to save, invest, or treat yourself to something special, creating a positive association with your credit card usage and financial habits.

  2. Travel rewards: Credit cards with travel rewards can provide opportunities for free or discounted travel, which can be a significant source of happiness for those who love to explore new places. Earning travel points through credit card spending can help you save on flights, hotels, and other travel expenses, allowing you to create cherished memories and experiences without breaking the bank.

  3. Other perks and benefits: Credit card rewards can also include other perks and benefits such as extended warranties, purchase protection, and access to exclusive events or experiences. These perks can add value to your purchases and enhance your lifestyle, contributing to your overall happiness and well-being.

However, it's important to note that credit card rewards are only beneficial if you use your credit card responsibly and pay off your balance in full each month. If you carry a balance and pay high-interest rates or fees, the value of the rewards can be quickly negated. Therefore, it's essential to always use credit cards responsibly, pay off your balances on time, and not overspend just to earn rewards.

Taking Small Steps to Get Started: Achieving financial happiness may seem like a daunting task, but taking small steps can make a big difference. Here are some practical tips to help you get started on your journey toward financial well-being:

  1. Set financial goals: Define your short-term and long-term financial goals. Whether it's paying off debt, saving for an emergency fund, or investing for retirement, having clear goals can provide motivation and direction for your financial journey.

  2. Create a budget: As mentioned earlier, creating a budget is crucial to understanding your financial situation and managing your money effectively. Use budgeting tools or apps to help you track your income, expenses, and savings goals. Make adjustments as needed to ensure you're living within your means and making progress toward your financial goals.

  3. Save and invest: Building a savings cushion and investing for the future are critical components of financial happiness. Start by setting aside a portion of your income for savings or investments each month, even if it's just a small amount. Over time, your savings and investments can grow, providing you with a sense of security and peace of mind.

  4. Educate yourself about personal finance: Knowledge is power when it comes to managing your money. Take the time to educate yourself about personal finance concepts such as budgeting, saving, investing, and retirement planning. There are plenty of free online resources, books, and courses available that can help you improve your financial literacy and make informed financial decisions. Be sure to share with friends and have money talks about what you learn!

  5. Avoid lifestyle inflation: As your income increases, it's tempting to upgrade your lifestyle and spend more on discretionary items. However, constantly increasing your spending to match your income can lead to a cycle of never-ending expenses and financial stress. Instead, practice living below your means and avoid unnecessary expenses that do not align with your financial goals and values. When those raises come increase your savings not spending.

  6. Seek professional advice: If you're unsure about how to manage your money or need help with a specific financial goal, consider seeking professional advice from a financial planner, advisor, or coach. They can provide personalized guidance and help you develop a financial plan tailored to your needs and circumstances.

Achieving financial happiness is not just about how much money you have, but how you manage and use it. By taking control of your credit card debt, leveraging credit card rewards responsibly, and taking small steps towards your financial goals, you can improve your financial well-being and ultimately find happiness with your money.

Remember to create a budget, save and invest, educate yourself about personal finance, avoid lifestyle inflation, and seek professional advice when needed. Financial happiness is within reach with consistent effort, discipline, and mindful money management. So start taking small steps today toward a brighter and happier financial future!

Thank you to Alicia Durham for coming on my podcast and helping with this money talk. You can find her online at


Money Talk with Skyler Fleming

Listen wherever you find your podcasts or on Spotify

6 views0 comments


bottom of page