5 Psychological Tricks To Boost Happiness — Even on a Tight Budget
Written by
Ellie Diamond
Edited by
Molly Sullivan
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
People often say that “money can’t buy happiness,” but it doesn’t always feel true. Living on a budget can make you painfully aware of what you can’t have, but it doesn’t have to be that way.
As the author of “The Art of Spending Money: Simple Choices for a Happier Life,” Morgan Housel has learned that a longing for more is what makes us unhappy — not how much we have or don’t have. He’s identified five mindset changes that can help you feel more content, regardless of your bank balance.
1. Romanticize the Everyday
In a recent CNBC article, Housel shared insights from French writer Marcel Proust, who knew a young man who wanted to be rich. Proust told him to spend time looking at paintings of everyday life so that he could see ordinary surroundings as beautiful and grand.
Today, we call that advice “romanticizing” your life. It’s about cultivating gratitude by seeking out beauty and elegance in life’s small moments, such as:
- Dressing in your favorite outfit and appreciating the feel of the fabric
- Drinking your morning coffee slowly, savoring the taste and the warmth of the mug
- Playing gentle music as you get ready in the morning, as though you’re a character in a movie
- Enjoying an hour before bed with a book, a cup of tea and soft lighting
When you find beauty in the life you have, it’s less tempting to compare yourself to others.
2. Enjoy Free and Low-Cost Hobbies
Happiness isn’t about achievement, Housel said. It’s about being content in the present, whatever it offers.
He explained by telling readers about his grandmother-in-law, who lived for 30 years on a small Social Security benefit. “She was perfectly content in her small garden and reading books from the library,” Housel remembered.
Hobbies like reading and gardening can trigger the release of dopamine, a hormone that improves mood and generates feelings of pleasure. Other low-cost activities that can release dopamine include:
- Exercise
- Yoga
- Meditation
- Hiking
- Dog walking
All of these can be free — even dog walking. If you don’t have one of your own, you can offer to walk a neighbor’s.
3. Repeat the Phrase ‘This Is Enough’
No matter how rich you are, there’s always something you don’t have. Happiness depends on how you feel about those things.
“If you don’t want something and don’t have it, you don’t think about it,” Housel explained in his CNBC article. “If you want something and can’t have it, you drive yourself absolutely mad.”
To help yourself avoid wanting more, take some time regularly to look at your life and say to yourself, “This is enough.” Remind yourself that you’re OK, no matter what you can buy, instead of agonizing over what you can’t have.
4. Want Less Than You Have
Housel used the phrase “low expectations,” but that phrase tends to have a negative connotation. The idea is more about a lack of striving, which you can replace with joy — like Housel’s grandmother-in-law.
“She had little but wanted even less,” Housel recalled. “And she was one of the happiest people you could have ever met.”
Though on the verge of poverty, the older woman was happier than any billionaire Housel has known because she saw everything as more than she needed, so she had no reason to feel discontented.
5. Appreciate Your Circumstances at Every Stage
Housel’s philosophy of contentment isn’t about denying yourself financial growth. You can cultivate gratitude for what you have and still appreciate it when things improve. The trick is not longing for what comes next.
Cultivate this habit by starting a gratitude practice. Every day, identify three things you’re thankful for and why. Write them in a journal for extra impact. In time, you’ll learn how to appreciate growth without needing it in order to be happy.
More From GOBankingRates
