Many, or possibly most, people do not know how to spend money for maximum and sustainable happiness. Worse, too many people spend money in a way that is destructive to their ability to achieve their goals. Lack of familiarity with the basic principles of spending for happiness is intricately connected with setting goals. After all, how can we set financial goals if we do not know how to use our money effectively? The reality is that we cannot. Instead, we find that people veer dramatically from their stated goals, often borrowing money to make large and impulsive purchases only a few weeks or months after completing a financial plan. The result is often financial stress, unhappiness, marital discord, the inability to participate in family life, illness, or divorce. The next few blog posts will discuss the principles of smart spending and some techniques for effective goal-setting.