"If money doesn't make you happy then you probably aren't spending it right"
(Journal of Consumer Psychology)
The relationship between money and happiness is surprisingly weak, which may stem in part from the way people spend it. Drawing on empirical research, we propose eight principles designed to help consumers get more happiness for their money. Specifically, we suggest that consumers should (1) buy more experiences and fewer material goods; (2) use their money to benefit others rather than themselves; (3) buy many small pleasures rather than fewer large ones; (4) eschew extended warranties and other forms of overpriced insurance; (5) delay consumption; (6) consider how peripheral features of their purchases may affect their day-to-day lives; (7) beware of comparison shopping; and (8) pay close attention to the happiness of others.Your thoughts?When asked to take stock of their lives, people with more money report being a good deal more satisfied. But when asked how happy they are at the moment, people with more money are barely different than those with less (Diener, Ng, Harter, & Arora, 2010). This suggests that our money provides us with satisfaction when we think about it, but not when we use it. That shouldn't happen. Money can buy many, if not most, if not all of the things that make people happy, and if it doesn't, then the fault is ours. We believe that psychologists can teach people to spend their money in ways that will indeed increase their happiness, and we hope we've done a bit of that here.