Special to the Financial Independence Hub
Do you believe the saying money can’t buy you happiness? Most people laugh at that notion, while some of the wealthiest people sing its praises …
I recently read a book called Happy Money: The Science of Happier Spending by Elizabeth Dunn and Michael Norton.
The book set out to tackle the question – “Just because money often fails to buy people happiness, does that mean that it can’t?”
Luckily it can: it just depends on how you go about spending it. It turns out that our everyday spending choices releases a variety of biological and emotional effects – either positive or negative.
This book covers five specific spending strategies to spark positive effects and increase happiness. You may have heard of some – such as buy experiences, not “things.”
The goal is to maximize the amount of happiness you get out of every dollar you spend.
Some of the wealthiest individuals have mastered these tactics (Bill Gates / Warren Buffett) and don’t let their wealth become a source of anxiety or stress.
It’s important to note that these ideas aren’t supposed to encourage you to spend your way to happiness. All strategies are meant for your discretionary spending, after your needs and future savings goals are taken care of (see my previous article on Guilt-free Spending).
All of the ideas written about here are completely attributable to the authors of this book and include paraphrased ideas and/or direct quotes from the authors. I don’t take credit for the concepts written here. The full book is a quick read and if you are interested in reading more in-depth, you can buy a copy here.
A study found out that once an individual makes $75,000 or more (in the US), any increase in income has no effect on their everyday general happiness. Isn’t that crazy?