Why Money is Just a Tool for Happiness

Discover How Changing Your Money Mindset Can Lead to a More Joyful Life

Stoy Hall, CFP®
September 13, 2024

Today, we're going to talk about something that might change the way you think about money forever. Are you ready? Here goes: Money is just a tool. That's right, it's not the goal itself, but a means to an end. Let's dive in and see how this simple idea can transform your financial life.

What is True Wealth?

First things first, let's define what true wealth really means. Is it a big number in your bank account? A fancy car? A huge house? Not quite. Here's what I believe:

"True wealth is happiness, ability to give back to others, and live life basically joyfully the way you want to."

That's right, true wealth is about joy, giving back, and living life on your own terms. Money is just one way to help you get there.

Money: Your Financial Swiss Army Knife

Think of money like a Swiss Army knife. It's a tool with many uses, but it's not the end goal. You don't buy a Swiss Army knife just to look at it, right? You use it to solve problems and make your life easier. Money works the same way.

Here's a thought that might surprise you:

"It doesn't matter how much return an advisor or anyone tells you they can give you... If you had 0 to invest, it wouldn't matter what return I can give you."

In other words, focusing only on investment returns misses the bigger picture. The real question is: how can you use money to create the life you want?

The Joy Factor: Your Financial North Star

Remember when you were a kid and you got really excited about something? Maybe it was a trip to the zoo or a new toy. That feeling of pure joy and excitement? That's what we're aiming for in your financial life.

"Figure out that thing that brings you joy that you want to accomplish that year... pick one and allude back to that at all times, because that's going to keep you hopefully within track and on the right path."

This joy factor should be your financial North Star. Every financial decision you make should be in service of creating more joy in your life.

The Budget Reframe: From Restriction to Freedom

Now, I know what you're thinking. "Stoy, are you going to tell me to budget?" Well, yes and no. I want you to think about budgeting differently:

"It's more organizing it. Where's my money coming in? Where's it going out and why? Right? Why is it doing that?"

Budgeting isn't about restriction. It's about understanding your money so you can use it more effectively to create joy. It's like knowing what tools are in your Swiss Army knife so you can use the right one at the right time.

The Fun Money Revolution

Here's a radical idea: you need a "fun money" category in your budget. That's right, I said it!

"A line item in your budget has to be fun money... that is literally money that if you wanted to, you could just burn it. I don't care what you do with it, but it needs to have that flexibility in everyone's budget to just go spend and be happy."

This isn't just about splurging. It's about giving yourself permission to enjoy life now, not just in some far-off future.

The Team Approach: You Don't Have to Go It Alone

Here's my number one tip for changing the way you think about money:

"It takes a team to be successful, wealthy journey, whatever you want to call your thing, your financial plan. It takes a team."

You don't have to figure this all out on your own. In fact, you shouldn't! At Black Mammoth, we believe in the power of a team approach. We're here to be your financial quarterback, coordinating all aspects of your financial life.

Wrapping It Up: Your Journey to True Wealth

Remember, true wealth isn't about having the biggest pile of money. It's about using money as a tool to create a life full of joy, purpose, and meaning. Here are your action steps:

Identify your "joy factors" - what really makes you happy?
Organize your finances - understand where your money is coming and going
Include a "fun money" category in your budget
Build your financial team

Ready to start your journey to true wealth? Check out our Modern Family Office approach. We're here to help you use money as a tool to create the life you really want.

Remember, money is just a tool. You're the craftsman of your own life. Let's build something beautiful together!

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