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Research shows we often fail to spend money in ways that maximize our happiness. Happy Money, by Elizabeth Dunn & Michael Norton, provides a research-backed framework for getting more satisfaction from every dollar by changing how we spend rather than how much we have. The authors' core principles offer actionable ways to transform spending habits for greater wellbeing.
Spending money on experiences, such as travel, concerts, and learning new skills, provides more lasting happiness than material purchases. Experiences give us stories to tell, connect us to others, and become a meaningful part of our identity. While things get old, experiences grow richer in memory over time.
Abundance reduces appreciation. By deliberately limiting access to the things we enjoy — whether lattes or luxury cars — we can maintain their specialness and maximize pleasure. Small pleasures deliver more happiness when they're occasional treats rather than everyday occurrences.
Trading money for more free time by outsourcing disliked tasks or reducing commute times can make us happier than buying more stuff. Yet people often fail to spend money to buy themselves more time, even when they can afford to do so. Making time-saving purchases helps combat feelings of time scarcity.
"If human happiness is even half as complicated as the stock market, there is little reason to assume that intuition provides a sufficient guide."
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