The Happiness Code

A quick disclaimer at the outset, this is neither a typical sociobabble post nor have I actually cracked the formula to be happy. As per sociologists and happiness economists, from the limited set that I have read, happiness by definition is complex and non-linear in nature. We often confuse deeper satisfaction in life with our short-term mood swings. Technically, both constitute happiness. Happiness is not only what you feel but also what you do. Happiness is linked to baseline prosperity (materialistic) but it is also not entirely dependent on income alone (read Easterlin Paradox). Happiness is also relative (think about career envy). It is about one’s absolute state but also the perception of what it should be. If one were to build a model to assess happiness score, it will most likely be multi-variate (age, health, income, relative progress, etc.) and require Monte-Carlo simulation to arrive at possible outcomes. On the other extreme, a lot of research indicates that happiness diminishes during adult years and bottoms out around the age of 45-50 years (Happiness U curve), so why even bother as biology will decide the route anyway.

I have tried to look the other way and have realized that this is not as esoteric a subject as it is made out to be. I am 35 years old and became financially independent at the age of 21 (no debt and no financial support from parents). Over the years I have had my share of hard learnings, personally and professionally. One key learning that has stayed with me is the power of ‘Compounding’. While compounding is an investing 101, it’s also applicable to other aspects of our lives and impacts habit formation and life experiences significantly. I truly believe that simple principles and habits can help us increase our happiness quotient daily. We are what we do and practice every day. Habits impact every facet of our life; wealth, family, health, mannerisms, etc. Every tiny action or good habit that we commit to, compounds to outsized returns in the long run (James Clear is an authority on the subject and I’d encourage everyone to read his seminal work). But this is a double-edged sword that has the potential to deteriorate life experiences if we choose the wrong habits. The reality is good habits are tough to practice. If you have a go at these early in your life, these can become muscle memory & your ally and really improve your quality of life.

I have collated a few principles or best practices from reputed sociologists (stay with me, still not sociobabble), happiness economists, entrepreneurs, investors, and authors touching upon different aspects of our life that help enrich the overall life experience. I have taken the liberty to tweak a few on the basis of my experiences as well. Do feel free to add more life hacks in the comment section. Goes without saying, we all want different things from life and the best choice varies.

 Self-development:

1.      Network with as many people as you can in your life. Our tribal instincts may have subsided but modern tech has allowed the whole globe to be singular, so build one for yourself before it gets late

2.      Travel to as many places as you can. There is a lot that one learns from different cultures. Luminaries like Phil Knight (Founder, Nike) or investor Byron Wien (VC, BlackStone) advocate this strongly

3.      Never miss an opportunity to speak at events or share your writings. These continue to be the best tools to market oneself. There will be mistakes, but the bright side is you will still stand out

4.      Self-invest in your skills every few years. World is upgrading, are you? With the democratization of education, schooling should not come in the way of your learning. Challenge yourself intellectually

5.      Your profession maybe your passion, if not, don’t fret over it. Everyone retires eventually

6.      Key to be successful is in embracing boredom. There is no job that keeps you excited 100% the entire time

7.      Always strive to be a good team player. You may be an introvert but don’t be awkward. The world has moved from the 'survival of the fittest’ to the ‘survival of the fittest may also be the gentlest’ as survival (read growth) requires mutual help and cooperation

8.      Small wins help you keep motivated. If you are stuck and bored, you need small wins to move forward (go step out to jog first, the marathon will happen eventually)

9.      Specialization helps but range matters. Learn about different disciplines as they provide much-needed perspectives

Building wealth: Initial years you earn from renting your time, and then it is your judgment that matters

10.  Live significantly below your means (don’t be a hedonist and buy expensive iphones when you can't afford those). Morgan House stated well in his book, “(actual) Wealth is financial assets that you havent converted into the stuff you see”

11.  Save at least 30-40% of your income from day 1

12.  Retirement planning should begin before you start earning

13.  Don’t spend more than 20% on house rent ever

14.  Keep an emergency fund to cover 5-6 months of expenses

15.  Automate your investments e.g. SIPs (Less the effort the better)

16.  Invest only in index funds and not individual stocks (money managers fail at this regularly, so don’t try be one)

17.  That said, take concentrated bets in few alternatives and individual stocks (who doesn’t love some dopamine effect)

18.  Look for passive income opportunities (create content, buy commercial property, take up a side hustle)

19.  Keep a track of your ‘Rundles’ (taking a cue from repeated bundles as coined by Scott Galloway). We are surrounded by subscription businesses which could add up to a considerable expense if remain unchecked (I recently cancelled my Netflix account)

20.  Use credit card to build credit history and track traditional expense categories. You can’t re-steer if you don’t know where do you spend

Happy spending: We are always taught on how to invest but spending impacts our happiness equally. This is like a Capital Market Line depicting spending & happiness and aiming for an optimal mix

21.  Which one do you remember, your last holiday or your expensive material purchase? What would matter more over the next 10 years? Spending on experiences helps improve long term satisfaction

22.  As stated before, happiness is also about doing good. Be generous and spend on others as well. There is a reason why philanthropy appeals to people. Try making a small donation, it does make you feel good

Time Smart: Everyone relates to the trap of ‘I don’t have time’ we set ourselves in. This is time poverty and impacts happiness (read Ashley Whillans)

23.  Approach your decisions in terms of time and not money (e.g. how many days of your job will it take to buy your new gadget)

24.  Similar to expense budgeting, maintain a time log of activities that go unchecked (referring to my Netflix example ‘again’, I realized I was spending atleast 5-8 days on the app per year) and optimize where possible

25.  Learn to say No. It is an important skill to manage your calendar

26.  Autonomy Paradox: Technology is pervasive and has made us more efficient but it also keeps us connected all the time. Checking emails & messages and catering to myriad other notifications on innumerable screens takes away a considerable time each day (I just realized, my active 4 screens on a Sunday evening are completely unnecessary)

27.  Attention economics is the next big thing. Every internet business and app on your phone aims to improve engagement (requiring more of your time). Be tactful to deal with these (my new thumb rule for any online shopping is to close purchase within 10 min and repeat orders as much)

28.  Modify any wasteful hours into useful activity (network with people during your shared Uber rides, listen to books / podcasts while you are driving etc.)

29.  Outsource routine tasks to focus on your work or things you like to do. I haven't driven to work in years with ride hailing services available on a tap of a button. Outsourcing mundane jobs would cost slightly

Health:

30.  5.00 am routine is for real. It helps you stay disciplined in the long run

31.  Meditate for 30-45mn every day. You just need to sit idle and remain mindful of your state

32.  Never eat sugar. Period

33.  Figure out the workout regime that you enjoy. There is no one-size-fits-all so try a few and then decide (running, swimming, yoga, cross-fit, weightlifting, etc.)

34.  Don’t skip your workout

Relationships:

35.  Social connections and relationships matter the most. Do not undermine them ever

36.  There is no downside to overcommunication

37.  Be flexible

38.  You will never know everything about everything

Chances are you may have your own version of these principles/habits or may find all the above to be nonsense. Everyone undergoes their own quest to find answers to such pertinent questions in life. I think I would have benefitted from a laundry list of time-tested habits like the one above and believe it is never too late to start practicing.