Happiness is what all human beings desire. However, that wish or need should be based on reality and realization. As well as having to consider morality and ethics.

An important Dutch psychologist named Veenhoven describes “happiness" as 'An assessment of the individual's condition or condition is that How do you like your overall life? '

Financially, you might feel like you must wait to be a millionaire or have a lot of money to be happy. But it might not always be the case. This article has 5 indicators of financial happiness of a salary man as follows:

1. Liabilities of consumer products

Such as credit card debt Personal Liabilities Which owes a relatively high-interest rate (18 - 28% per annum). Classified as a debt that does not generate income and has a high cost of leverage. Causing the burden of both principal and interest payments at a high level. In addition, the source of these liabilities. Most of it comes from excessive spending. May not be able to pay the full amount or may be able to pay only the minimum. Resulting in increased interest burden and fines. So, if we want to be financially happy, we shouldn't have these debts. Until they are beyond their power to pay. Consider leveraging carefully. and don't spend more than you can pay.

2. Debt repayment obligation each month

Various installments, whether it be a home mortgage, car loan, personal debt All expenses are obligated to pay on schedule. Even if you say the house and the car Is a necessity to have However That we have a house or a car that is more than or too much is needed it gives us a large payment as well. Which will result in us having fewer savings. In addition, in times of crisis such as the economic crisis Epidemic crisis that resulted in lost income. But various installments did not disappear. It can cause stress and unhappiness. Therefore, the measure of financial happiness in this section is that the monthly installment burden does not exceed 40% of the income.

3. The proportion of savings per month

Salaryman with high income It doesn't mean that he will be happier than someone with a lower income. Because people with high incomes may have a higher cost. Although we might argue that having a lot of money is a great opportunity to spend. But must not forget that Spending much today May leave us with no savings left and cause suffering in the future. Therefore, a happy person is someone who has a good financial plan. That makes having enough money both now and in the future, We should have at least 10% savings of income.

4. Emergency reserves in the account

If we have savings to save in case of an emergency, it will naturally generate peace of mind. Especially in times of crisis If there is enough emergency fund It will help us to overcome this time without stress. and not suffering. We should have enough emergency reserves to cover our expenses for at least 6 months. This means If we happen to have unexpected events such as sudden unemployment or in a state of the sudden loss of income, at least we will have more money to spend for another 6 months. Which gives us enough time to find a new job without being too distressed.

5. Investment proportion

Another financial joy is seeing our wealth grow. Must not forget that one day everyone must retire. That means that income from work will be lost. But what won't go away at all is the cost. So, there must be preparations for a happy retirement. Which good retirement planning must go through a good investment plan. Where we can start from having savings and split the savings to invest. And when there is additional income Should increase investment in proportion to the additional income. It will increase retirement money as well. We should set aside at least 10% of the income to be used for retirement. If you can do this, we have no worries about the future, where to find the money to spend. Because we have already planned and prepared. However, there is a risk of investment and there is a possibility of loss. We, therefore, need to have the knowledge and understanding of what is being invested. They should also not invest more than the risks that can be taken and regularly review investments

In summary, the five indicators mentioned above. With good financial planning, anyone can enjoy financial life, regardless of whether they have high or low income. A financially happy person is someone who, in addition to enjoying their overall life. There is also balanced financial planning in all aspects. Which everyone can be financially happy too. Just start planning your finances as quickly as possible because 'good financial planning' is over half the victory!

Nipapun Poonsateansup CFP®, ACC

Independent financial planners, writers and speakers