How do you make money boost your life satisfaction?
Money can be an opportunity for happiness as long as you don’t squander it. How do you use your money to maximize your happiness?
All too often, people misjudge the purchases that they make. They are wrong on what will make them happy, how happy it will make them and how long that happiness will last.
Short lived pleasures
As an example, a bathroom is remodeled. At first the proud owner has such positive feelings until the bathroom becomes ordinary and fades into the background of one’s conscious experience. This is not to say that a bathroom in need of a remodel should not be remodeled.
All of those sparkling new bath fixtures may heighten expectations and desires creating a lofty euphoria that soon disappears. After the bathroom is remodeled what about the living room and bedroom. Don’t they look outdated now that the bathroom was recently done?
This is not to say that money and spending money bring no happiness. What matters is how you spend your money.
Buy experiences instead of items.
Cornell University ran a study on this subject and found that purchasing an experience tended to improve well-being more than buying a possession. This is so because we are more prone to compare our possessions to others and end up with buyer’s remorse regarding material goods.
Objects tend to deteriorate over time while experiences can create lasting memories. Experiences are easier to appreciate, we are made happier by experiences. You are more likely to recall them. It is more likely to become part of your identity, a sum of your experiences.
We tend to adapt faster to objects that do not change such as material objects. Experiences on the other hand, offer more novelty and variety which can extend enjoyment.
Many small pleasures might be better than a few big ones.
Are you more likely to be happier if you save up for a few big-ticket items such as a car, or if you indulge often in small experiences such as meeting with friends for a meal, a movie or perhaps a manicure?
Research indicates that it is better for us to use our financial resources for purchasing frequent doses of lovely things rather than infrequent doses of lovelier things. Happiness is more aligned with the frequency of pleasures as opposed to the intensity.
Small pleasures tend to be different every time whether that be dinner with a friend or a new book. We do not adapt to these and become as bored as we would with one large purchase.
Spend on others, not yourself.
Research proves that it is better to give than to receive. We are highly social creatures, much of our happiness is based upon the quality of our relationships. Almost anything we do to improve our connections with others tends to improve our happiness as well and that includes spending money.
When you buy, consider what you are not thinking about.
People can make purchases the same way lovers enter a hasty marriage; in a rosy glow of imagination with little realistic thought of what forever with that person is really going to be like.
Want to purchase a second residence? Have you thought about the real estate taxes? The home repairs that will be needed? The utilities? How often will you actually live in that residence during the year?
It is a common pitfall as we tend not to map out the future of our purchases, we look at the moment that the item was purchased.
Should you have questions regarding this topic, we invite you to contact us for a brief, no-cost, no-obligation 15-minute discussion. We have exercises that can help you better understand your spending habits so that you spend your money based upon your values thus bringing you more happiness.
Let us know by clicking the “Schedule a Consultation” button in the upper right corner of this page or any such tab within the website. Again, the brief consultation is without cost or obligation.