More money, more smiles


Posted December 27, 2014 by feroshwolic

Money can’t buy happiness, right? Well, not true. According to a recent article in The Wall Street Journal

 
Money can’t buy happiness, right? Well, not true. According to a recent article in The Wall Street Journal, over the past few years, new research has given us a much deeper understanding of the relationship between what we earn and how we feel. The results may seem a bit obvious: Yes, people with higher incomes are, broadly speaking, happier than those who struggle to get by. But the research also shows you have to spend strategically if you expect those bank notes to put a smile on your face. Here are some ways to better spend your money:

Buy experiences, not stuff.

In a recently published study, Ryan Howell, associate professor of psychology at San Francisco State University in the US, found that when people don’t have much money to spare, they tend to stick to material goods.

“People think that experiences are only going to provide temporary happiness,” he told The Wall Street Journal in an interview. “… but they actually provide both more happiness and more lasting value.”

Buy lots of little things, rather than one big thing.

No matter how much money you spend on something and how special that product is, you will get used to having it over time and it will become just another object. People adapt to having new stuff, and anything that disrupts that adaptation is likely to prolong happiness, says an Atlantic article. Buying small things can give us frequent small pleasures that are different each time they occur, as they forestall adaptation.

Buy what you like.

No keeping up with the Joneses. “There are a lot of reasons someone might buy something … but if the reason is to maximize happiness, the best thing for that person to do is purchase a life experience that is in line with their personality,” Howell tells Forbes. Howell recently co-authored a study finding that when people spend money just to project a certain image, it doesn’t bring happiness.

Be sure to buy time, too.

It’s also important to consider how what you’re buying will affect how you spend your time. For example, that big house in the suburbs may seem like a good idea, but according to The Wall Street Journal, a 2004 study by researchers from University of Zurich in Switzerland found that people with longer commutes reported lower overall life satisfaction, all other things being equal.

Try giving it away.

Elizabeth Dunn, associate professor of psychology at the University of British Columbia in Canada, found that in countries as diverse as Canada, South Africa and Uganda, giving away money consistently made people happier. This was even true when people were giving away even when they themselves were relatively poor.

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Last Updated December 27, 2014