Happy Money - w/ Liz Dunn | How to maximize your happiness without increasing your income

Happy Money – The Science of Smarter Spending

1. Buy Experiences

  • Experiential purchases make us happier compared to material purchases
    • Probably because they make us feel connected to others
    • They define who we are
  • Our biggest regrets are in-action (not experiencing) and Buying stuff we did not need
  • We experience the benefits of experiences long after the time has passed
  • Satisfaction
    • With experiences increases over time
    • With stuff decreases over time
  • Length of experience does not matter

2. Make it a treat

  • Abundance is the enemy of appreciation
  • Altering consumption patterns can provide a route to getting more happiness for less money
  • Knowing that something won’t last forever can make us appreciate it even more
  • We maximize our happiness when the treat is only available for a limited time

3. Buy Time

  • When people engage in volunteer activity – for as little as 15 minutes, they feel they have more time
  • Spend time with family and friends
  • Measure buying decisions with time
  • When you see time as money you find it difficult to find joy from unpaid pleasures of life
  • We must view happier times as an end in themselves

4. Pay Now Consume Later

  • se rejouir  = Deriving pleasure in present from anticipating the future
  • Delay enhances the pleasure of consumption
    • We develop positive expectancy
    • Drool Factor

5. Invest in Others

  • There is a correlation between pro-social spending and happiness
    • Actions have to be self-chosen
  • Investing in others improves happiness even when people don’t have enough for themselves
  • Invest in a way that also allows you to connect with them
  • Providing money and support to others makes us healthier and happier
  • People who donate feel wealthier

 

Important Links

To learn more about Happiness, also check out our Interview with Gretchen Rubin of Happiness Project

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