How To Buy Happiness, No Really!

We’ve all heard and most probably used the phrase “Money can’t buy you happiness,” well science proves otherwise, it can, but only if spent the right way.

In the fantastic book, Happy Money: The New Science of Smarter Spending by Elizabeth Dunn and Michael Norton, they explain how science has taught us about how to spend better and thus make us happy. After all, we all need to spend money at some point and not just save, save, save.

So if we are looking to improve the wellbeing of our employees, we need to educate them on not just saving, budgeting and pensions, we need to show them how to spend in a way that will improve their wellbeing. Also, how can we gear the Employee Benefits that we offer to products and services that are aligned with the Happy Money principles below?

“Before you spend that ￡5 as you usually would, stop and ask yourself: Is this happy money?”

Five principles of happy money

In the book, Dunn and Norton present 5 principles to spend differently; to spend smarter. When applied, these principles can lead to happier people spending less money!

1. Buy experiences – Material things (from big houses to fancy cars) turn out to provide less happiness than experiential purchases (like trips, concerts and special meals).
2. Make it a treat – Limiting our access to things we really like may help invigorate our appreciation and enjoyment from them.
3. Buy time – By permitting ourselves to outsource dreaded tasks, money can change how we spend time allowing us to pursue more enjoyable things. Instead of cleaning on Saturdays, pay someone to do it so you can do the things you want.
4. Pay now, consume later – Delaying consumption allows spenders to enjoy the anticipation (think of the enjoyment you experience ogling the dessert case or thinking about the upcoming trip) without the buzzkill of reality. Book your holiday in advance and enjoy months of anticipation
5. Invest in others – New research shows that spending money on others produces more happiness than spending money on oneself.

The objective is not to just pick one principle but rather apply as many as possible to each spend. They have a cumulative effect. That is, the more principles you apply to any given purchase, the more happiness you will reap.

Source: Happy Money: The New Science of Smarter Spending by Elizabeth Dunn and Michael Norton

By Morgan Scott

From original artical on FinancialWellbeing.co.uk

Image: Shutterstock