Can money buy happiness? You may think the answer is no, but maybe it’s not about the balance in your accounts and more about how you choose to spend your money. In their book “Happy Money: The Science of Happier Spending“, Elizabeth Dunn and Michael Norton delve into the research linking money and happiness. Here are five ways they found money can “buy” happiness:
1. Focus On “Doing,” Not “Having”
The joy of having “things” fades quickly, whereas experiences have a lasting effect. If you’re going to spend money, choosing to go on a vacation or attend an event can lead to far more happiness than purchasing that new big-screen TV.
2. Keep Things Fresh
If something is always available, it often loses its luster. If you buy a pastry every time you get coffee, it stops being a treat and becomes a dull routine. But if you only treat yourself once a week, you will have something to look forward to and will appreciate it more.
3. Build Anticipation
Have you ever planned a trip months in advance, creating itineraries and researching restaurants? If so, you know that one of the best things about taking a vacation can be the waiting period, the build-up to the day you get on the plane or pack up the car. The anticipation of what’s to come intensifies the emotional experience.
4. Buy Time
Many people sacrifice valuable time to save a bit of money. But time may be more valuable. Try paying for a housekeeper, having your groceries delivered, or splurging on a direct flight instead of a cheaper indirect one. One way to save time that I’m particularly fond of (warning, shameless plug ahead) is to invest in a financial advisor to simplify your financial life. In all seriousness, by streamlining your finances, you can free up time and mental energy so you can focus on what’s important to you.
5. Give Freely
We often think that spending money on ourselves will bring happiness. But in reality, one of the best ways to create fulfillment is to spend our money on others. Have you ever bought the perfect gift for someone and experienced joy at how much they appreciated it? It’s a win-win.
Having more money doesn’t guarantee happiness, but being intentional with your money can bring you fulfillment. I’d love to help you simplify your finances so you can find even more happiness in life! Click here to schedule a phone call.
Richard Archer is a financial advisor and the President of Archer Investment Management with more than eighteen years of industry experience. Largely working with successful individuals and couples, he specializes in providing comprehensive investment guidance and personalized care and attention to each client. Along with holding a Bachelor of Science in Economics and a MBA, he is a CERTIFIED FINANCIAL PLANNER™ certificant and a Chartered Financial Analyst®. He combines his advanced industry education and knowledge with his genuine care for people to provide clients with an exceptional experience. To learn more about Richard, connect with him on LinkedIn or visit www.archerim.com.