9 Research-Backed Habits Of Happy People
Are you thriving? Struggling? Or suffering? Those are the three ways global analytics and advice firm Gallup classifies people. And at the moment, according to Its polls, the number of Americans thriving has dropped to lows not seen since the 2008 economic downturn. The poll also found the amount of stress and worry people feel on a daily basis hasn’t fully dropped to pre-pandemic levels.
Gallup’s data is worth considering. However, what it means to “thrive” is subjective. Some would say thriving is a mindset and being happy doesn’t come from having a lot, but rather from being grateful for what you have. That’s not to say there isn’t value in always striving for more. But if you’ve decided, “I’ll only be happy when [insert goal here],” you could be missing out on a lot of joy that’s available right now.
It is worth acknowledging that some of our happiness levels are genetic. In fact, a chart published in Berkeley University’s Greater Good Magazine shows 50 percent of joy is in your genes. But it also reports that 40 percent of your happiness relies on your behaviors and habits – so a lot is actually within your control. Based on a data, research and surveys, here are the habits of happy people.
They Exercise
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You don’t need to engage in a serious sweat session every day to feel happy. But you should be pumping some iron on a regular basis. Many studies have linked regular exercise to happiness. And one such study published in the International Journal of Environmental Research and Public Health showed this to be true for young, middle-aged and older adults. In examining 2,345 healthy adults, it was discovered that regular physical activity was linked to greater feelings of happiness and life satisfaction.
They Go Outside
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Getting outdoors on a regular basis can significantly improve happiness levels. The American Psychology Association states that time in nature can lower stress, increase feelings of empathy and even improve attention span. Simply looking at natural landscapes from trees and rivers to mountains can achieve this effect. So if you pair time outdoors with your workout, you get double the benefits.
They Are Generous
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It turns out that being happy isn’t about what you get, but rather what you give. Generous people are some of the happiest. In Adam Grant’s book Give and Take, it is reported that volunteers are some of the happiest people in the world. One study covered in the book found that volunteering increased happiness and self-esteem. Some studies even found that elderly adults who volunteer live longer.
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Many spiritual gurus and psychology experts would tell you that happiness is simply the feeling of gratitude for the things that you have. All of the riches in the world can’t make you feel happy if you don’t feel grateful for them. Research published in Harvard Health Publishing showed a significant correlation between expressing gratitude and feeling joy.
They Forgive
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According to the American Psychological Association, being forgiving can help alleviate anxiety and symptoms of depression. It can even reduce the likelihood of some psychiatric disorders. So if you’re holding onto any grudges, the only person you could be harming is you.
Research also shows that forgiving yourself is an important part of the happiness equation. A study published in the journal Human Development found that self-compassion is linked to happiness, optimism and feeling connected to others. It’s also linked to decreased depression, anxiety and fear.
They Plan Things
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Happy people have active, busy lives full of things that they look forward to from hobbies and socializing to trips. According to research from the Applied Research in Quality of Life, also shared in the Huffington Post, the simple act of planning a trip elevates happiness levels. So you get to be happy twice when you make a plan: first when you set it in motion, and then when you actually do the plan. It’s no wonder this is one of the more common habits of happy people.
They Devote Time To Loved Ones
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If you think happiness is on the other side of career success, think again. Martin Seligman, a known psychologist who has long studied the habits of happy people, reports in his book Authentic Happiness – based on his website – that people who are “very happy” spend the least amount of time alone and have rich social lives.
They Meditate
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Research published in the journal Personality and Individual Differences found a strong correlation between frequent meditation and high happiness levels. So while there is a joy to be found in planning things and looking forward to the future, there is also joy in being present right where you are.
They Value Experiences Over Things
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The American Psychological Association reports that valuing materialistic objects is linked to higher levels of depression, anxiety, and health issues like stomachaches and headaches. It’s something psychotherapist Richard Wiseman discusses in his book 59 Seconds, too. He notes that spending money on experiences over products contributes to both long and short-term happiness.
Planning a Down Payment for Your Home
Ever scroll through online home listings until your eyes are blurry, wondering, “How much house can I afford?” Homebuying can be a formidable process, especially for new buyers. But it doesn’t have to be. Grab your blue light glasses, and let’s dig into what it takes to plan a down payment for your home.
Answering the question of how to save for a house starts with figuring out how much you’ll need to save for the down payment, which is the amount of money you pay upfront toward purchasing your home. The down payment typically ranges from 3% to 20% of the purchase price.
Read on to learn what goes into saving for a home, including how the down payment affects your monthly mortgage and how the down payment impacts how much home you can afford overall. You’ll also learn creative ways to save money for a down payment, and how your local credit union can help you with financial education and favorable home-buying programs for credit union mortgages.
Take the Guesswork Out of Your Down Payment
Not knowing how much you’ll need to put down on a home can be a major stress factor when you just want to enjoy the excitement of buying a home. Take the guesswork out of the process with online calculators, such as this one from Freddie Mac, to figure out your potential monthly payment by changing up the variables that impact expenses. Such variables include:
- Annual income. How much money you make in a year will impact your ability to produce the upfront cash needed for a down payment.
Monthly debts. Other monthly payments, such as home utilities, school fees, and other miscellaneous expenses, will impact how much you can afford to pay toward your mortgage each month. - Term length. The longer the term of your mortgage loan (30 years is most common), the more payments you will need to make over time and the more interest you will pay.
- Interest rates. Interest rates vary depending on various factors — including the down payment amount. Typically, the more money you put down, the better interest rate you can receive from your mortgage lender.
- Down payment amount. The down payment amount will affect your monthly payment. A larger down payment translates into less money owed on the mortgage.
How Mortgage Type Impacts Down Payment
How much down payment money you need to accumulate as you save for a home may depend on what type of mortgage you choose. Here are common types of home mortgages and their typical minimum down payment percentages:
- Conventional vs. jumbo mortgages. Conventional mortgage loans come from banks, credit unions, or alternative lenders and typically require a down payment of at least 3%. For more expensive properties, Jumbo mortgages require a more significant down payment, commonly at least 10% or as much as 30% of the home’s value.
- Government-backed mortgages. Government-backed mortgages are available through three government agencies that help home buyers secure loans and offer certain benefits. These loans can help borrowers with fair or poor credit who cannot provide a sizable down payment.
- Federal Housing Administration (FHA) – offers a 3.5% minimum down payment
- U.S. Department of Agriculture (USDA) – offers zero-down loans
- U.S. Department of Veterans Affairs (VA) – offers zero-down loans
For the majority of home buyers who deposit less than 20% of a home’s value as a down payment, it’s important to know about private mortgage insurance.
How Down Payment Affects Private Mortgage Insurance
Conventional wisdom on saving for a home is to accumulate enough to make at least a 20% down payment. In that case, those who plan on buying a $500,000 house would need to save $100,000 for a down payment.
Sure, putting down one-fifth of the cost of your home will reduce your monthly payments and help you get a better interest rate on a mortgage. However, while a 20% or higher down payment may be ideal, saving that much can be difficult. In fact, the average home buyer provides a down payment of around 6% to 7% of the home’s value.
When a homebuyer has a conventional loan and puts down less than 20% of a home’s value as a down payment, the lender will generally require private mortgage insurance (PMI). PMI protects the lender if you stop making payments on your loan. Typically, the homeowner must continue to pay PMI until the home’s equity reaches 20% of the home’s value.
However, not all lenders require PMI, even with a down payment that is less than 20% of the home’s value. Credit union mortgages, for example, are known for their flexibility in working with members to suit individual needs. So, it’s worth checking with your local credit union to see your available mortgage options.
Ways to Save for a House
There is no magic bullet to saving for a house; as with anything, saving steadily over time is your best strategy. However, if you’d like to maximize the amount when you ask yourself, “How much home can I afford?”, you can tackle saving for a home in two ways:
Monthly savings approach. Figure out how much you can save monthly and then calculate how long you’ll take to collect a down payment.
Deadline approach. Figure out when you want to have the down payment, and then calculate how much you need to save every month to meet that goal.
The first option may take longer but allow you to live more comfortably, while the second option may require cutting a lot of spending to meet an aggressive timeframe.
Creative Ways to Save for a Down Payment
Whichever method you choose in saving for a home, you can take steps to speed up the process:
Decrease unnecessary spending. Cut back on things like entertainment, subscriptions, and eating out.
Go on a spending diet. Pick a specific period of time (we recommend at least a month) where you commit to intentionally spending only on essentials. Any money you would have spent on ‘extras’ can go toward your down payment.
Find secondary income streams. Whether it’s driving for a ride-sharing service in your spare time or selling your homemade mugs on a craft platform, there are myriad ways to bring in extra income with a side hustle.
Sell your stuff. Whether it’s grandma’s Christmas china that never gets used or that guitar you swore you’d learn how to play, take a look around you. It’s easy to sell unwanted items on social media or at your local thrift store.
Prioritize paying down debt. Doing so will help improve your credit score and increase your likelihood of getting a reasonable mortgage rate when it’s time to purchase.
Home-Buying Assistance Programs
Home-buyer programs from government agencies and financial institutions, like credit unions, offer various services to help fund your home purchase. Qualification for such programs varies but often depends on factors such as income level, credit score, expense, and intended use of the home. Here are some programs that may be available to you:
- Down payment assistance. Down payment assistance is money that covers a portion or the entire down payment for a home. It can come in the form of grants that do not need to be repaid, low- or no-interest loans, and matched savings programs.
- Closing cost assistance. Similar to down payment assistance, this form of aid covers the expenses associated with closing on a home.
- First-time home buyer programs. While some assistance programs apply to true first-time buyers, many state, federal, and other programs consider you a first-time buyer if you have not purchased a home in the last three years or are purchasing your first home as a divorcee. These programs offer flexible mortgage financings such as zero down payment, favorable interest rates, and no PMI.
Further Resources on Home Down Payments
If you’re looking for more information on planning a down payment for your home, plenty of resources are available online. Check out these helpful and often interactive sites:
- Consumer Financial Protection Bureau: Let’s you explore interest rates and how they might impact your payments.
MyCreditUnion.gov: Offers a variety of calculators to help you approximate everything from mortgage loans to savings estimates.
National Association of Realtors: The Downpayment Expectations Report provides a national perspective on stakeholder down payment expectations.
Enlist a Partner in Your Home-Buying Experience
Community-based credit unions often offer home-buying programs and can be an excellent resource for home-buying education and advice. Combined with leading rates on savings accounts and lower banking fees, they can be a great option for any home buyer.
Learning how to save for a house doesn’t need to be intimidating. Credit unions are here to help you understand what you need to know, find the right mortgage for you, and set you on the path to homeownership. Use our Credit Union Locator to find out about a credit union home loan near you.
How to Pay Off Debt
Debt sneaks up on us, especially if we’ve had a hard time managing our money in the past. However, it’s never too late to make our money work for us, get on top of debt and maintain a debt-free life. The task can feel overwhelming, but the right partner such as an adviser from a credit union on your side can make a big difference and help guide your journey.
When you’re ready to get started, here are 10 tips for saying goodbye to your debt.
1. Create a Budget
To pay off debt, you’ll need to build a budget first. Budgets are tools that can help you realize your goals and control spending. A budget will show you where your money is going so you can create a personalized spending plan. Building the budget is the easy part. Keeping to your budget takes practice and discipline.
Create your budget using an app on your smartphone, and it will be within easy reach to keep you on track. The use of Excel or other spreadsheet programs is another alternative. Items to include in your budget:
- Rent
- Groceries
- Daily incidentals
- Transportation costs
- Insurance
- Child care
- Pet care
- Utilities
- Debt payments (credit card, car payments)
- Health care costs
- Memberships
- Job-related expenses (wardrobe, dry cleaning, parking, etc.)
- Household maintenance
- Entertainment
- Auto
- Gifts
- Charitable donations
Building a budget is an excellent way to see all your monthly expenses. You most likely will find that expenditures can be eliminated or cut back on. Sticking to a budget doesn’t have to be painful. Find ways to reward yourself (modestly) when you hit milestones.
2. Pay Off Small Debt
Paying off the smallest debt (the snowball method) can give you quick rewards and learn discipline. It’s easy to do too. Pay down your smallest debt and continue to make minimum payments on the rest. Once that tiny debt is paid in full, take the dollar amount used for the debt and roll it into the next debt. Continue until all debt is paid off.
Paying off debt, no matter how small, is a victory, and it feels good. These wins keep you engaged with a sense of accomplishment and continued forward movement towards your goal.
An alternative to the snowball method is the avalanche method. Make minimum payments on all debts. Any leftover funds will go to the debt with the highest interest rate.
How you pay off your debt will be unique to you and your circumstances. Use a method that works for you and your budget.
3. Stop Spending
Sounds easy, right? Just stop spending money! How many times have we told ourselves that we’re not going to spend our next paycheck? It’s helpful to know your triggers to spending your hard-earned cash.
- Social Media – If you find you spend money while scrolling through Instagram or other social media limit usage, remove apps from your phone or charge your phone away from your bed or nightstand. Remember that social media has a purpose, to get you to buy things. If you’re on social media and have the urge to buy, close the app, take a deep breath, count to 10.
- Build a Budget – Here’s the B-word again. If you don’t track where your money is going, you’ll never control it. Building a budget doesn’t have to be painful. With award-winning apps available, it’s almost painless.
- Delete Credit Card Information – Delete all pre-populated credit card information from the online places where you shop the most. Remove apps from the sites you spend the most on, such as eBay, Etsy, or Amazon.
- Inbox Clean Up – Unsubscribe to all shopping/eCommerce newsletters. Eliminate tempting offers and headlines right at the start.
4. Change Spending Habits
When you are moving to a debt-free life, you’ll need to change spending habits. So often, when we’re out shopping, we are not paying attention. We only needed toothpaste and a gallon of milk, but left with a shopping cart of clothes and toys. Shopping with a goal in mind is helpful to keep on track. List making is another way to bring mindfulness into your shopping experience.
Additional ways to change your spending habits include:
- Eating In – If you eat out a lot, cut back to twice a week or less. Try to find ways to make dining at home fun.
- 48-Hour Rule – If you see something that you want to buy, wait 48 hours. Waiting allows you to think if you need the item.
- Grocery Shopping – Start menu planning for the week and make a detailed shopping list. If possible, don’t shop with kids. Online grocery shopping is an excellent way to keep you out of the store and your cupboards stocked.
- Retail Therapy – Don’t use shopping as a way to relax. When we are out with friends who love to shop, we often engage in impulse buying and buy things we don’t need. If you use retail therapy to connect with friends, find another way.
5. Credit Consolidation
If you feel like your debt continues to be unmanageable no matter what you do, debt consolidation may be a good option. Debt consolidation combines all your credit card and unsecured debt into one payment—no more worrying about multiple due dates from different creditors. All qualifying debts are put into one manageable monthly payment with a debt consolidation plan. Consumers can consolidate unsecured personal loans, medical bills, and credit card debt. It’s essential to obtain a lower interest rate on a debt consolidation loan. There are two types of debt consolidation loans:
- Credit Card Balance Transfer – Good for those with a good or high credit score.
- Fixed-rate Debt Consolidation Loan – Better for those with a fair or lower credit scores.
Individual circumstances vary, but you may pay off your debt through consolidation in 24-60 months. Credit unions may offer lower rates on debt consolidation loans and help you pay down higher-interest debt faster.
If you choose debt consolidation, it’s crucial to maintain your budget and monitor your spending habits.
6. Avoid Payday Loans
One type of loan to avoid is the payday loan. Considered a short-term loan with a low dollar amount, it has exorbitantly high-interest rates, some as high as 400%. Loans must be paid back within the next payday, or additional fees and interest will accrue. Due to the predatory lending practices of many payday lenders, they are illegal in some states. Tip: Credit unions offer better options for consumers and may offer better alternatives.
What types of Personal Loan is best?
7. Increase Income – Side Hustle Ideas
The side hustle, everyone is doing it, or so it seems. Side hustles can be a great way to bring in extra cash. From teaching English online, selling on Etsy or eBay, to renting out a room in your home. Here is just a sample of the hundreds of ways to earn extra income:
- Sell refurbished furniture
- Rent out a parking space
- Teach music lessons
- Write an eBook
- Mow lawns or pick up pet waste
- Baby or pet sit
- Sew or alter clothes
- Write resumes
- Teach your hobby (yoga, sewing, knitting, golf, etc.)
- Donate plasma
- Become a product tester
Many side jobs can be done at home, online, or in your neighborhood – there’s bound to be one that fits your personality, schedule, and situation.
8. Financial Education
Many Americans don’t understand how interest works or what inflation is. Good news, it’s never too late to learn about finances, how credit works, investments, and debt management. Financial literacy means you’ll know what it takes to avoid debt in the future and stay on track to a debt-free life. Credit unions are well known for delivering high-quality financial education to members. Education can include in-person workshops, online programs, presentations, and seminars. A sampling of topics:
- Finance Higher Education
- Home Ownership
- Manage Debt
- Credit Cards
- What is Compound Interest
- Identity Protection
- Stock Market and Investing
- Medicare Options
- Student Loan Strategies
Topics and subjects are for various ages, from teens to adults. Find a local credit union and see how to improve your financial literacy.
9. Maintain a Debt Free Life
Debt relief is stress relief. It’s that simple, but living a debt-free life is not easy. We are inundated with the temptation to spend money almost every second of the day. But, with thought and consideration, you’ve recognized what your triggers are, you created and updated your budget, classes and workshops were completed. You put in the hard work and now are debt-free. Congratulations! Know that your work doesn’t stop here. You’ll need to stay in the habit of questioning purchases, avoid impulse buying. Maybe keep at your side hustle to build your emergency account. When living a debt-free life, remember it’s a long-term strategy. A few ways to keep your life debt-free:
- Buy a used car over a new
- Pay off credit card transactions immediately
- Build an emergency fund
- Rent over homeownership
- Avoid student loan debt
- Start an automatic savings plan
10. Find a Financial Partner
Any change we undertake from losing 10 pounds to paying off debt takes dedication, discipline, and commitment. Remember, with every step you make towards your goal, you’re winning. Sometimes we fall short and overspend – and that’s okay. It happens; we’re human, after all. If you slip up, be kind to yourself and get back on track.
It helps to have a partner that can guide you through the ups and downs of becoming debt-free. Credit unions partner with you and can provide a personal guide to help you achieve your financial goals. Find one in your area and get started on a debt-free life.
How to Pay Off Debts. (n.d.). Default. Retrieved August 16, 2022, from https://www.yourmoneyfurther.com/personal-money-solutions/personal-loans/how-to-pay-off-debts
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