“Why is Finer writing about Gratitude?” you might ask. “Isn’t this is a personal finance blog?”
Yes – this is a personal finance blog. But over the years, I have realized that the ‘personal’ aspects of ‘personal finance’ are more important than the ‘finance’ part. The finance part is straightforward and math-driven, whereas the personal aspects are much more nuanced and complex!
Happiness is the primary reason people pursue Financial Independence. But there is another path to happiness – and it’s free.
Plus, it is Thanksgiving week, so what better time to write about this topic!
Why focus on Gratitude?
There is more than enough scientific research showing that gratitude leads to happiness and other benefits like improved physical and mental health, sounder sleep, reduced stress, better relationships, etc.
A few years ago, I stumbled upon the concept of a Gratitude Journal – a simple notebook where you write three things you are thankful for every day. These things could be profound (like when you figure out the meaning of life) or simple (like a beautiful sunrise, a healthy glass of juice in the morning, a good night’s sleep, etc.). Or anything in between.
It does not matter what you are thankful for – the key is to take time to be thankful for something.
As an example, below are two past entries from my journal:
- Good books (I think I was reading The Richest Man In Babylon back then)
- An old song that I just heard again
- A day with only two meetings (which meant there was a lot of time to get real work done)
- Listening to birds chirping in the morning
- Clean air (maybe this was during the time of large California wildfires)
- My new standing desk (I still have the desk and I still like it a lot)
When it comes to life, the critical thing is whether you take things for granted or take them with gratitude.
G.K. Chesterton
What I Learned from the Gratitude Journal
Initially, like any good consultant, I was skeptical about writing a gratitude journal.
When I started writing the journal, it did not feel any different. But I kept at it – primarily because it only takes a few minutes. Over time, though, I started noticing some changes.
It felt better to start my day on a positive note. I used to catch up on the news in the morning, and the news is mostly sad or downright depressing. Instead, now, I think of the positive things happening in my life.
Humans are hardwired to focus more on the negatives. A $1,000 loss hurts us more than a $1,000 profit brings us joy. Additionally, sorrows tend to linger, while joys are fleeting. So, it is helpful to remind ourselves every day of the good things that are happening in our life.
Over time, I started to realize that there are many things going right in my life!
I began appreciating people more since I now noticed the good things about them. I became more optimistic and less stressed.
Reflect upon your present blessings, of which every person has plenty;
not on your past misfortunes, of which all people have some.
Charles Dickens
Gratitude and Finance
Looking back at my journal, it is interesting to see that many of the things that I am grateful for do not cost any money. This realization helps me stay frugal and spend money on things that genuinely make me happy.
In the mad rush of life, we are always trying to get more – more money, a better car, a bigger house, etc. But we fail to appreciate the things we have now. So when we get the things we want in the future, we may not appreciate them either.
For example, if you are not grateful and happy with your current iPhone, there is no guarantee that you will be happier when you buy the new iPhone next year (and you will have wasted a thousand dollars in the process).
Do not spoil what you have by desiring what you have not.
Remember that what you now have was once among the things you only hoped for.
Epicurus
Other Thoughts on Gratitude Journal
You don’t need to buy a fancy gratitude journal – you can write three things on a piece of paper or type them on your computer. And three is not a magic number – you can write five things or two.
Although writing every day is good, there have been times when I have missed writing for a day or two. Sometimes, I have missed writing for a few weeks. But I eventually always get back to it. It is great if you can find an accountability partner – someone who can help you stay on track.
Gratitude is critical for success in any area of life, not just finance. One of the wealthiest people in the world – Warren Buffett – uses coupons to save money. Apart from the fact that he is frugal, it is also a form of gratitude. In a way, it is a recognition of what’s been earned and reverence for it.
Gratitude paves the path to lasting wealth and also, a happy life.
Great insight, gratitude and it’s implications on life in general, thank you.
In the spirit of the article – I am grateful for your nice comment!