Know Your Finances: Money does buy happiness

Posted by Ellen Le on February 2, 2011

Holy guacamole! Call all
the newspapers! A study was published this week declaring that money can buy
happiness. Well, I hope the money spent on the study made someone happy. I
mean, really, it doesn’t take a genius to figure out that money makes life
easier and happier. Don’t get me
wrong, I value my family and friendships way more than that thin, inert,
inorganic, flimsy friend, called Mr. Greenback. And a beautiful day, an
inspiring painting or winning a tennis game make me truly happy. But let’s face
it; I can’t easily enjoy these things without Mr. Greenback in my life.

The Wharton School
researched people in 140 countries and found the shocking revelation that the
more money a person has, the happier they are in life. Studies just like this
one came out as recently as July and September 2010, but they also indicated
that happiness stems from feeling richer than friends and neighbors.

It’s settled then, the
more money we have, the potentially happier we are. Here are 12 ways for you to
attain greater happiness in 2011:

1.
Eat out only for special occasions.

Not
only will you become choosier about where you eat, but you will better
appreciate a good meal out.

2.
Shop at local produce outlets.

Often
the prices are cheaper because the fruits and vegetables are from local farms.
The quality is usually better too.

3.
Drop junk foods and sodas from your grocery list.

They
are expensive and bad for you!

4.
Consolidate your errands.

It
makes sense to plan outings to save on gas, which is over $3 a gallon and
rising! While saving money and
time, you can also feel happy that you are helping to save the planet.

5.
Buy generic or supermarket brand groceries when
possible.

They
usually have the same ingredients for a lot less.

6.
Bring lunch to work.

Not
only will you save money but it will taste better and be better for you.

7.
Don’t buy stuff you don’t need.

This
one’s easy. Ask yourself if you really need it. The bonus is you get to live an
uncluttered life.

8.
Borrow books and movies from the library.

This
is for people who frequently buy books and go out to the movies a lot. You will
save tons of money!

9.
Comparison shop for everything.

Nickel
and diming everything is totally chic these days. It adds up with the smaller
things, and makes a quick impact with the big things such as insurance premiums
and long distance telephone.

10.
Turn down your thermostat.

Put
on a sweater. Wear socks to bed. Invest in warm blankets.

11.
Throw extra cash at mortgage principal every month
or whenever possible.

You
will be happier when the mortgage is paid off sooner!

12.
Make a budget.

This
may not be everyone’s cup of tea. But for those of you who love to be in control
of your life, having a budget is a wonderful way to manage your expenses.

“I have learnt to seek my happiness in
limiting my desires, rather than attempting to satisfy them” John Stuart Mill

• Ellen Le is the
founder and president of Ascend Investment Management (www.ascendinvmgt.com).
She has been a financial planner and investment adviser for more than 20 years.
I look forward to receiving your
questions about anything related to investments, retirement planning, or the
economy. Send them to: ellen@ascendinvmgt.com and write “Chadds Ford Live” in
the subject line.

About Ellen Le

Ellen is the Founder and President of Ascend Investment Management. She was born in Philadelphia and has lived in the Delaware Valley for most of her life. When she is not researching investments and managing portfolios, she pursues her interests in tennis, bridge, hiking and art. Beginning her investment career in 1981 as a stockbroker at E.F. Hutton and Co., Ellen now has over 20 years of investment management experience. Prior to founding Ascend in 2006, she managed high net worth assets for many years at Bank of America, Mellon Bank, and most recently at Davidson Capital Management. At Davidson Capital Management, Ellen served as a Senior Vice President and Senior Portfolio Manager of the firm. She managed assets for more than 50 family relationships and was a core member of the firm’s Investment Committee.Ellen earned a BA in History from Brown University and a MBA in Finance & Investments from The George Washington University. She is a member in good standing of the Chartered Financial Analyst (CFA) Institute, which is a global organization dedicated to setting a high ethical standard for the investment profession. Her professional memberships include the Delaware County Estate Planning Council, Women Enhancing Business (WEB), and the Chadds Ford Business Association. She is a docent with the Delaware Art Museum and an active volunteer with the Brown University Alumni Association.