Home - cash•ti•vated

Money Is The Key To Happiness

Money can make you happy. There I said. I know you’re all thinking that cliche, “but Sara, money CAN’T make you happy, it’s not possible. We need love, and people, and relationships, and cookies, and M&M’s to make us happy”

And you’re right.

Sort of.

But hear me out. I would never prescribe that money can fill all those important voids in your life. I mean what does make a fulfilling, happy life anyway? I would argue, that friends/family/relationships are probably the root of happiness. Sprinkle in some self-esteem, values, career, and love, and well, you’ve got a recipe for true happiness.

But money does something that nothing else can. It gives us POWER.

Not like Superman power, although we’ve all met that guy that’s rich and thinks he’s some sort of superhero.

Money gives us the power to make change and choices. Let me say it again, and louder, cuz this is the good stuff.

MONEY= FREEDOM and CHOICES

Money has the power to impact our lives in a way that nothing else can. When you have the ability to make choices and have freedom, well you’ve got it all.

Tired of living in that small home, time to make a change. Tired of working, and need a vacation, here’s some freedom. Want to spend time giving to charity, or volunteering? Money can make that happen.

See money has the power to make us unconditional in our own life. What does that mean you ask? Well, how many of us have needs, wants, and desires, but there are conditions on them? I’d like a new car but can’t afford it. I’d like to send my child to an Ivy league school but can’t afford it. I’d like to spend more time with my kids, but I’ve got to work.

Whether we like it or not, most of our lives and choices, are dictated by money. Either a lack of it, a need for more of it, and spending time trying to find or earn it.

While money certainly isn’t going to hold your hand during an evening stroll or open a door for you at a restaurant, money does afford us the opportunity to make a change. Change that can become significant in our lives. Change that can lead us to happiness.

I’m definitely not saying that you can’t be happy if you don’t have money, plenty of people are. But wouldn’t life be so much more enjoyable, and less stressful, if we had more of it? Wouldn’t that time that we spend with our family, friends, and loved ones, be more enjoyable if the stress of bills, life, and responsibilities was lessened just a bit?

I certainly don’t want to sound crass or ambivalent about what really matters. It’s clear to me that connection and relationships are the cornerstones from which human existence is shaped. But why do we criminalize and make money a dirty thing? Why do we look at the “money-hungry”, and those that make lots of money as less feeling and connected to us. Certainly having money can buy us lots of fancy things, and experiences, but that’s really not what I’m talking about. I’m talking about something that’s so much bigger.

I realize that many might not agree with me, and it’s really a subjective question. I mean how much money do you really need, a little? A lot? That’s really up to you and your needs. I’m not an extravagant person, I do have certain specific goals that I want to acquire, and no living in a castle isn’t one of them! I am fairly modest. But I do know that having money gives peace of mind, and peace of mind, to me, leads to happiness. And isn’t that what we’re all after anyway?

Whatever your relationship with money is, it’s personal and I get that. And I agree that a simple life can be quite fulfilling. Sustaining meaningful relationships, having a connection and love is always going to be at the top of the list. But being able to have freedom, and freedom to make choices might be a close second.

13 Simple Ways to Pay Off Debt

Paying off debt is one of those things that we all seem to dread. I mean, we’re all kinda in the same boat, right? I know I am.

Debt is one of those things that unfortunately many of us, are still struggling with. If you’re like me, and the majority of Americans are, we are paying on debt month, after month, without really getting it paid down.

This creates a waterfall effect, that just adds up over time. Even with our best intentions, with interest payments added in, it begins to add up. And up it goes. Making it tougher and tougher to pay down.

I think a good rule of thumb, is that if you can’t afford it, then you can’t afford it. That being said, I realize that many people have debt that includes, emergency debt, healthcare debt, and school debt. While none of it is good, sometimes we are left with little, to no choice, but to accrue some.

So here’s the good part.

We can pay off ALL that debt. Like ALL of it!

It takes some time, dedication, and planning, but it can be done. Here are 13 simple ways that start paying off that debt.

And don’t be afraid, dig in, and get started. The quicker you get started, the faster it’ll get paid off!

Create a Budget– Ok, first things first. You really need to start with a budget. No, not that “I’ll just add up my bill in my head”, type of budget. Like a real one. You know, the kind where you sit down, either with an excel sheet, or a budget planner, (link to mine), or even an app and get to work. This can be the scariest part of paying off debt because most people do not have any idea where their money goes. You’d be surprised about how much money we squander on silly things. And that money can go towards paying off that debt!
Pay off Highest Interest Rate First, then Lower Interest Rate Debt– So this might seem like a simple concept that many of you know, but how many of us apply it. It’s called Debt stacking. Basically, you gather all your debt and rank it with the highest to the lowest interest rate. Then you pay off the highest debt first and make moderate payments on the others. Then you move onto the next debt. This is a common, and time test way to pay off debt. There is another debt strategy called, debt snowballing, which includes paying off the smallest debt first and working your way up. Whether you go with stacking or snowballing probably won’t make that big of a difference, as long as you pick one and stick with it!
Sell Non-Essential Items– So I’m gonna guess that if you look around, you’ll see many items around your house, worth money, that are collecting dust. Maybe it’s an extra car, antiques, electronics. Well if you gather non-essential items up and make a plan to sell them, you’d be surprised how much cash you can make. And just think, you won’t miss them, because you probably weren’t using them to begin with!
Trade in the Car, Drive a Cheaper Ride, or Ride the Bus– This surprisingly is one of the hardest things for people to do. People become quite attached to their cars, maybe its the comfort, maybe it’s the status of them. But trust me, it will feel much better to be debt free then to drive around a fancy rig. Trading in for a cheaper car, selling an extra vehicle, or gasp, even taking public transit, is a great way to start saving money. C’mon, just try it.
Find a Side-Hustle– Ok, so I know what you’re thinking, “ I work so hard, I don’t have more time to work”. Well when we prioritize our life, we can make time. Not all side hustles take lots of extra time. Maybe try becoming an Uber drive on weekends, or babysit in your neighborhood, or heck, even start a blog!
Take Advantage of Balance Transfers to Lower APR– While I don’t recommend necessarily looking for new credit cards, being practical about it, you can find better deals on credit cards. But DO NOT get trapped into transferring balances to a new card, and keeping the old card open. DON’T do it! If you transfer a balance, then close the old card. Cuz trust me when I say, it won’t take long for you to start using that card again, and well, we’ll be in more debt than before!
Apply Extra Income Bonus/Tax Refunds to Debt– This can be a tough one because most people think of a raise, or a tax refund as free money that they’ve earned. And you have. But if you’ve done your budget (budget link), and you’re living fairly comfortably, using these extra funds to pay off debt will be a much smarter move, than taking that cruise you’ve wanted, or spending the extra cash on more stuff. And besides, this isn’t forever, once you’ve paid off your debt, you can take that trip you’ve always wanted.
Halt All Non-Essential Spending– So how do we define non-essential? Well to me non-essential, means every extra expenditure that isn’t on the budget. Like movies, clothes, magazine subscriptions, coffee, etc. It doesn’t have to be big things, but if you add up all the small things, they do add up.
Move in With Parents to Save Rent– I am not recommending this for everyone, because if you’ve got a family, or your parents live in a small house, this probably won’t work. But if you and your parents still get along, and the accommodations work, this can be such a money saver. You need to set up parameters and a timeline, so nobody thinks they’re getting taken advantage of, but this will save you LOTS and LOTS of money!
Change Your Spending Habits– Just like halting all non-essential spending, changing your habits can make a big difference. Bringing your lunch to work, taking public transit 2 days a week, buying clothes at Goodwill. It all adds up. And it’s not that hard. Small changes, make big results.
Get Rid of Cable, Netflix, Internet, Magazine Subscriptions– I personally did this and it saved me about $100/month. I got rid of DirectTV and subscribe to SlingTV which is virtually the same thing. Now, if you want to really get crazy, you could get rid of it all! I realize this is a major thing, but think how much money and time you’ll have.
Get Your Hair Cut/Dyed at Hair school, Not Salon– This can be tough, because like your vehicle, people like to spend money on appearance. But truthfully, if you’re a woman, and you get cut/dyed, it’s quite spendy. I was spending close to $225 every 8 weeks. I did try a hair school, and it’s great. And quite a money saver. It does, however, take lots of time. Be prepared to wait. If you’re super adventurous, try dyeing your hair at home, or even cutting it at home! I did it, and it’s easy.
Shop at Goodwill/Second-Hand Stores– I’ve always loved Goodwill and second-hand stores, even when I was a kid. There are lots of treasures to be found! It takes some time and diligence, but you can find great deals and nice clothes for so reasonable.

So there you go, 13 easy ways to save money and pay off debt. I realize that trying all 13 would probably be too much to ask, but what if you just implemented a few of them, like 2 or 3? Maybe give it a try and starting adding a new one every month. Before you know it, you’ll be debt free!