I recently read the book Happy Money by Elizabeth Dunn and Michael Norton. The book is clever and as the authors like to point out, there are 17,000 books on Amazon to tell you how to get more money. They wanted to write a book to tell you how to get more happiness from the money you have.
Their book delivers 5 guiding principles.
- Buy experiences not things: We humans acclimate fast and the novelty of new wears offquickly, experiences however can create positive memories that last a life time.
- Make purchases a treat: Along the line of 1, about ability to adjust fast can make something that was once special, ordinary and boring. Making it a treat helps sustain the emotional payoff.
- Buy Time: We often lose sight of the fact that we don’t have time to enjoy the things we buy. Buying time can allow us to enjoy items 1 and 2 more.
- Pay First, Consume Later: Turns out, paying first builds anticipation, and there’s no dread after consumption. So, you get more “happy” for the same money.
- Invest in Others: Turns out, spending money on others delivers some of the biggest happiness returns science has measured.
In my personal experience, I can vouch that I have tested all 5 of these principles to some degree and I have found at least some validity in them.
Over the next few weeks, I will share personal experiences for each of the rules and my findings. Starting next week with, Rule One, buy experiences not things.