5 ways to a happier (financial) life

Biggest time waster: Commuting
I don’t look back at my career with many regrets—except commuting. NJ Transit, the commuter rail system that runs trains into New York City, stole countless hours that I would love to have back.

Best investment attribute: Humility

Wall Street wants you to believe you can beat the market, because market-beating efforts are a big moneymaker—for financial firms. But it hasn’t worked out so well for investors.Trading stocks may offer an adrenaline rush and buying actively managed funds can allow us to dream of riches, just like lottery tickets. But managing money should be about making money, not entertainment. If you want to notch decent returns, put your ego aside and put your money in broadly diversified index funds with rock-bottom annual expenses.

Key to financial success: Cheap housing
A third of the money spent by the typical household goes toward housing. Add car payments and other transportation costs, and you’re at more than half. My advice: Try to keep those two costs well below 50% of your income, especially in your early adult years.

Best way to spend money: Experiences
I believe money can buy happiness, but you have to spend with care. My advice: Use your spare cash for experiences, not possessions. Pay for the family vacation. Go to a concert. Head out to dinner with friends. This will strike many as counterintuitive. Possessions seem appealing, because they have lasting value, while experiences leave us with nothing tangible.

Top financial goal: Not working for money
Unless you have enough saved for retirement, you need an income. But if possible, never work just for a paycheck. I believe the keys to a fulfilling life are spending our days doing what we’re passionate about and our evenings with friends and family.