Spend for Happiness — 3 Expert Tips That Work on Any Budget
Written by
Peter Burns
Edited by
Cory Dudak
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While most people enjoy buying something new and expensive such as a new phone, TV or car, the pleasure of that purchase often fades over time. After you grow bored with what you bought, you’ll want something new, and the cycle repeats. This is called the hedonic treadmill, in which spending money temporarily boosts your happiness, only to reset to a normal level.
This psychological idea relates directly to the saying “money can’t buy happiness.” However, not everyone subscribes to that notion. Dr. Jordan Grumet, a hospice doctor and author, believes there are ways money can bring you happiness as long as you use it the right way. Here are three different things you can spend money on that experts believe bring lasting happiness.
Personal Growth
If you have regrets in your later years, you won’t be happy. Because of his experience in hospices, Grumet noted to CNBC his firsthand experience with those who didn’t put their money and energy into becoming the people they wanted to be to CNBC. He found that spending can lead to happiness when you do so to become the best version of yourself.
If you spend most of your income on things and experiences, the effect wears off. However, putting your money toward education, creativity and challenges leads to confidence and a sense of fulfillment. This concept dates back to Aristotle, who argued each person should strive to become the best version of themselves. This pursuit of fulfilling your potential is called eudaimonic happiness.
Relationships
Another area where money translates to joy is in your social life. Dr. Robert Waldinger, a professor and psychiatrist, is conducting the Harvard Study of Adult Development, which has been ongoing for over 85 years. This study followed hundreds of men over the course of their lives to determine what influenced their happiness.
The main findings of this decades-long study are that good relationships keep people happy and healthy. Waldinger claims a stable relationship for a middle-aged person is a stronger indicator of health and happiness than cholesterol levels. It also found loneliness can be as detrimental to your health as smoking. Because of this study, it’s easy to surmise that investing your money in others, by doing things like paying for shared experiences, giving gifts and supporting others’ growth, can lead to a happier life.
Time
It’s impossible to slow down time, but you can buy more of it, and that can lead to happiness. A study published in the Proceedings of the National Academy of Science (PNAS) found that those who spent their money on delegating tasks to others to free up time for themselves had more life satisfaction than those who didn’t. Paying for services such as grocery delivery or gardening, rather than spending the time doing it themselves, afforded them more opportunities to relax or do more enjoyable things.
In one experiment, PNAS researchers gave 60 adults $40 each to spend specifically on services that would save them time. The initial thought was these people might feel lazy about hiring someone to clean their home or mow their lawn, but the research showed a different result. Those who bought extra time exhibited the same happiness signs as if they’d saved money.
In the grand scheme of things, time is a finite resource. Having extra time can lead to reduced anxiety and stress, or the possibility of doing more meaningful activities. Extra time allows you more control of your life, which leads to more happiness.
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