How you spend your money has a bigger influence on your happiness than how much money you have. Follow the five principles of “smart spending” to improve the use of your money and happiness.
5 Principles Of Money And Happiness.
- Buy experiences
- Make it a treat
- Buy time
- Pay now, consume later
- Invest in others
5 Smart Ways To Spend Your Money And Improve Your Happiness.
- “Buy experiences” because that can make you happier than buying material goods. Experiences boost joy by connecting you to others and reinforcing your sense of identity.
“Shifting from buying stuff to buying experiences, and from spending on yourself to spending on others, can have a dramatic impact on happiness.”
- “Make it a treat.” Having chocolate every day isn’t as special as having chocolate sometimes. Rationing your use of things you enjoy will increase your pleasure in them.
“From chocolate bars to luxury cars, habituation represents a fundamental barrier to deriving lasting pleasure from our purchases.”
- “Buy time.” Before you buy something, consider its impact on your sense of having enough time. Turn “decisions about money into decisions about time.” Volunteering time for meaningful causes will make you feel as if you have more time.
“By consistently asking yourself how a purchase will affect your time, your dominant mind-set should shift, pushing you toward happier choices.”
- “Pay now, consume later.” Paying in advance will increase your satisfaction.
“When people think about recent expenditures, they become more susceptible to actual, physical pain.”
- “Invest in others.” Spending for others, instead of yourself, will make you happier.
“People who report donating money to charity feel wealthier than those who do not, even controlling for how much money they make.”
4 Ways How To Use The Principles of Smart Spending To Improve Your Money And Happiness.
- Businesses should consider these spending principles when trying to satisfy their customers or employees.
- Companies should taylor their product or services to serve these spending principles. Employers should follow these spending principles to keep their employees happy and healthy.
- Government policy should promote happier and smarter spending by its citizens.
- Instead of giving tax breaks to buy material things that adds the stress of debt, our governments should cultivate happiness more effectively by funding institutions that offer memorable experiences, such as parks and museums.
“Just because money often fails to buy happiness, does that mean that it can’t?”
- Money and Happiness | Psychology Today
- Science Says Money Does Buy Happiness If You Spend It the Right Way
- Can Money Buy Happiness? A New Way To Measure
- This Is the Ideal Amount of Money for Happiness, Study Says
- Photo by iStock