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5 Ways How To Spend Your Money To Happiness.

5 Ways How To Spend Your Money To Happiness.

Research show that money can buy you happiness.

Here are 5 spending principles you can follow to get the most happiness value for your money.

“We mistakenly believe that we’re already spending money in ways that will make us happier; the flat-screen TV and enormous house in the suburbs just feel like they’ll provide lasting happiness.”

“There is almost no evidence that buying a home – or a newer, nicer home – increases happiness.”

1.  Buy Experience.

Spend your money on something that last a lifetime.  Buying an experience can make you happier than buying material things.  Experiences help you become happier by connecting you to others and reinforcing your sense of identity.

“Research shows that satisfaction with experiential purchases tends to increase with the passage of time, while satisfaction with material purchases tends to decrease.”

“By consistently asking yourself how a purchase will affect your time, your dominant mind-set should shift, pushing you toward happier choices.”

2.  Make It A Treat

Habits kill pleasure.  Contrary to belief, doing something you love everyday can make you hate it.  Learn to step away from the 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.”

3.  Buy Time

Before you buy something that may seem like a “good buy,” consider its impact on your time.  Buying a flight with a layover may see like a great bargain until you compare the money you saved versus the time you could have used at your destination. Was it worth it?

“By consistently asking yourself how a purchase will affect your time, your dominant mind-set should shift, pushing you toward happier choices.”

4.  Pay Now, Consume Later

Saving and paying in advance will help increase you happiness.  Research found that high prices can actually cause mental and physical pain so we turn to credit cards. Credit cards “provide anesthesia against the immediate pain of paying.” Although credit cards replaces the pain of paying, there is nothing worse for you happiness and well being than debt anxiety.

“When people think about recent expenditures, they become more susceptible to actual, physical pain.”

“If you carry a credit-card balance that fills you with dread, the happiness boon of paying it off may be greater than just about anything else you could do with your money.”

5.  Invest In Others

Charitable spending or activities 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.”

“Taking the time to help others makes people feel effective…and these feelings of competence lead volunteers to feel less overwhelmed by the multitude of tasks in their everyday lives.”

Buy your happiness.

“Just because money often fails to buy happiness, does that mean that it can’t?”

 

Source(s)

Happy Money: The Science of Happier Spending Book Cover Happy Money: The Science of Happier Spending
Elizabeth Dunn, Michael Norton,
Business & Economics
Simon & Schuster
May 20, 2014
224
Author & Professor

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Elizabeth Dunn is an associate professor of psychology at the University of British Columbia in Vancouver, Canada. At age twenty-six, she was featured as one of the “rising stars” across all of academia by the Chronicle of Higher Education.

Michael Norton is an associate professor of marketing at the Harvard Business School. His research has twice been featured in The New York Times Magazine Year in Ideas issue. In 2012, he was selected for Wired magazine’s Smart List as one of “50 People Who Will Change the World.”

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