by Alex Hinds

Created on: July 22, 2009   Last Updated: July 24, 2009

Given the economic systems within which we exist, money, to some degree at least, is a necessity for the vast majority of people. With this in mind it is inevitable money will have at least some part in the equation that makes up our personal happiness. For each of us the importance of money in the big picture of our lives will vary depending on our circumstances and personality, but it will be in there somewhere exercising some influence over you!

While Jane Austen may have said, "A large income is the best recipe for happiness I ever heard of", it is true to say money doesn't necessarily buy you happiness. It is also the case that a lack of money can be a big source of stress and unhappiness. What is probably the key is to have enough money to be free to concentrate on other things that will bring you happiness. How much is enough depends on your costs of living the lifestyle you need and/or want.

The route to happiness for many people may be easier by addressing the cost side of the equation than worrying over trying to increase the income side. Instead of stressing over the shortfall in your income adjusting your situation, habits and aspirations to fit comfortably within your income can quickly give you sense of freedom from money worries and help you on your way to happiness. This is not say having goals and aspirations is not worthwhile, but that if these are realistic objectives from your current situation a sense of dissatisfaction is more likely to be avoided while you work towards achieving them.

Living within your means will go a long way to helping you feel happy and even build your personal wealth. Charles Dickens summed this idea up beautifully when he said, "Annual income twenty pounds, annual expenditure nineteen nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery". Freedom from money worries is not necessarily achieved though wealth, but more from having a reliable income sufficient to meet your needs and aspirations. If this is achieved through work that is personally fulfilling and worthwhile its value to your happiness equation will be even greater!

In fact, with a different outlook on your life and finances you may find you can already consider yourself relatively wealthy. As Edward Gibson said, "I am indeed rich, since my income is superior to my expenses, and my expense is equal to my wishes".

Learn more about this author, Alex Hinds.
Click here to send this author comments or questions.