These Are the Money Moves I’ve Made That Have Improved My Happiness the Most

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Saving up an emergency fund increased my happiness by giving me peace of mind. Learn about this and other moves that have made a big impact. [[{“value”:”

I try to manage my money as wisely as possible. To do that, I’m always looking for ways to improve my financial situation, such as finding a new credit card offering great rewards.

Many of the steps I’ve taken have improved my personal finances — but some of them have made a far bigger difference than others, not only when it comes to my financial life, but when it comes to my life in general. In fact, here are the three money moves that I’ve made that have had the biggest impact on my happiness over time.

1. Saving up an emergency fund

Saving up an emergency fund with six months of living expenses has made a huge difference in my overall happiness for a few different reasons.

First, it’s given me peace of mind. As a financial writer, I know that unexpected emergencies are a fact of life. Pew Research found in 2015 that 6 in 10 Americans had experienced a financial shock over the prior year. Since I saved up an emergency fund, I no longer worry about whether I’ll have to borrow or struggle to afford unexpected expenses. I can feel confident the money is there.

Second, when unplanned bills have come up, I’ve been able to avoid getting upset and handle them easily. For example, my air conditioner going on the fritz is no longer a financial disaster or even a cause for concern. I know I have the money to cover it.

Third, my large emergency fund has also been used for things that have improved my life in huge ways, including paying for life-saving surgery for my beloved dog.

Saving up an emergency fund may not seem like the most exciting financial goal and it may be hard to believe the impact it could have on your happiness. But if you’ve ever worried about how to pay a bill, been concerned about an item breaking that you’d have to pay to fix, or been faced with a cost you feel is essential that you can’t afford, then you’ll likely find that you are a much happier person when you no longer face these concerns.

2. Buying a house

Buying a house is a major financial decision. And it’s one of the best ones I’ve ever made — again, for a few reasons.

One reason is that I know with each housing payment, I’m building equity. I’ve also been lucky enough to make money on past home sales, which enabled me to climb the property ladder and ultimately buy my dream home. And third, buying a house has allowed me to customize my property to my liking, which has a huge impact on my happiness.

Buying a home isn’t right for everyone. But if you want to set down roots, make a place your own, and acquire a valuable asset with each housing payment — and if you’re financially ready to qualify for a mortgage — then it can be a great thing for you, too.

3. Automating my financial life

Finally, the last big move I made that significantly improved my happiness was automating my finances. Basically, I arranged for all my bills to be paid automatically and for money to transfer to savings automatically. This way, I know I can spend whatever’s left in my bank account each month once that happens.

Making all of these steps automatic means I don’t have to think about where my money is going, worry whether I’m on track for my goals, or wonder if I’m overspending. If I just keep the status quo, I know my goals will be accomplished over time — and I can enjoy spending the rest guilt free. And you can do the same by having your paycheck sent automatically where it needs to go by signing up for automatic bill payments and automatic transfers to savings and retirement accounts.

Making these three moves has made me a much happier person, and if you are currently stressing about your own financial situation, you may want to consider whether any of them are right for you, too.

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