Budgeting for happiness

The KonMari method went mainstream in January of last year when Tidying Up With Marie Kondo hit Netflix.

For those unaware, the KonMari method involves gathering all one's belongings, one category at a time, and then only keeping those things that spark joy.

What if we applied this rule to how we spend our money?

This is something personal finance author Ramit Sethi has advocated for in his (unfortunately titled) book I Will Teach You To Be Rich.

Frugality, quite simply, is about choosing the things you love enough to spend extravagantly on—and then cutting costs mercilessly on the things you don’t love. via I Will Teach You To Be Rich

Financial minimalism: the process of maximizing the amount of happiness you get back from your expenses. Don't confuse pleasure for happiness. Pleasure is fleeting and short-lived while happiness radiates and lingers long after your purchase.

Spending for pleasure is buying 1/2 pound Reese's cups off Amazon. Not that I've ever done that.

Spending for happiness is budgeting enough to anonymously pay for a stranger's meal every month.

You don't have to gift strangers, but you may find it's one of the more rewarding ways you can spend your money.

However you decide to budget for happiness, automate the process. Your bank should allow you to setup automatic transfers each month. Use them. It's the only way to guarantee you don't get in your own way.

Demand more joy from your expenses by budgeting for happiness.

More from Jamie's Notebook