The joy of financial security

We’ve all heard that money can’t buy happiness, so while money in itself might prove fairly worthless in this endeavor, financial security really can give us the peace of mind that leads to happiness. And that sense of security doesn’t require a fortune to sustain it; it’s more about the belief that you have a handle on your finances and are prepared for the future.

It’s not just about the money

Donna Skeels Cygan, author of “The Joy of Financial Security” and president of Sage Future Financial in Albuquerque, New Mexico, has done extensive research on the subject of money and happiness. “What I concluded is that money doesn’t buy happiness, yet it most definitely impacts our happiness.”

She describes most of her affluent clients as “the millionaire next-door, with solid middle income values.” While many are more frugal than they need to be, given their net worth, those who manage and spend money wisely are happier. “Those who have struggled with finances for a variety of reasons were less happy.”

While some of her insights may seem obvious at first, there is an important distinction between just having piles of cash and actually feeling in control of your finances to the degree that you can live the life you desire. After all, there is no shortage of stories of multimillionaires who overspent or overleveraged and ended up in the poorhouse. What they lacked was the bigger strategy that would give them better financial control over their assets.

via The joy of financial security « Bankrate, Inc..