Caroline Cakebread

Turns out it doesn’t take millions of dollars to make most people happy. Princeton economist Angus Deaton and Nobel Prize winner Daniel Kahnemen conducted a U.S. study linking human behaviour and finance. According to their findings there is a specific dollar amount or income plateau after which earning more money has no measurable impact on your level of contentment.

Then last week a house around the corner sold for over $1 million – a full $200,000 over the asking price. The day after it sold, neighbours were gathered on the corner, talking about the couple who bought it, rumoured to be in their 20s with no kids. We all openly wondered, “How can they afford that?” “Who are they?” “Do they have rich parents or are they overmortgaged?” Then one of my neighbours came out and said something a few of us were thinking: “I hate them already.”

In the dark days of January my family and I don’t go out much, which means we spend lots of time cooking and eating at home. This is great for our overall budget – it means we’re not spending big dough on restaurants or takeout. But it does mean we spend a lot of time at the grocery store and since Christmas, our food budget has soared. Not because we’re eating more but because we’re not being smart about our shopping.

Today people seem to spend hundreds of dollars to fete their offspring with bouncy castles, elaborate themed cakes and live entertainment. There are cheaper alternatives and you can hold a traditional kids’ birthday party for under $50 with a little planning and know-how.

Adopt these healthy money habits over the next month to start the new year off on the right financial foot.