I roughly agree with all the recommendations in the abstract, but I think 5 should come with a warning. For all the spendthrifts out there who live paycheck to paycheck, there are savers who go to the other extreme, and that ascetic frugality is hard to grow out of even when it's no longer needed.
The best way around this I've found is to give to charity early in the year, and for whatever reason that somehow makes it easier to spend on myself.
I think in general having financial security makes me happy, not buying any specific stuff.
I have trouble reading this format so I threw it into ChatGPT to summarize:
This article, authored by Elizabeth W. Dunn, Daniel T. Gilbert, and Timothy D. Wilson, explores the often weak relationship between money and happiness, and suggests that this might be due to how people spend their money. They propose eight principles to help consumers derive more happiness from their spending:
1. Buy Experiences Instead of Things: Experiences tend to bring more lasting happiness than material goods because they are more central to our identities and hard to compare with others.
2. Help Others Instead of Yourself: Spending money on others, or prosocial spending, can lead to greater happiness than spending on oneself.
3. Buy Many Small Pleasures Instead of Few Big Ones: Due to adaptation, indulging in frequent small pleasures can lead to more sustained happiness compared to infrequent large ones.
4. Buy Less Insurance: People often overestimate their vulnerability to negative events, and thus overspend on unnecessary protections.
5. Pay Now and Consume Later: Delaying gratification can enhance happiness both through the anticipation of the event and by encouraging more thoughtful consumption choices.
6. Think About What You're Not Thinking About: Considering the peripheral aspects of a purchase, such as the daily realities or inconveniences, can lead to better decision-making.
7. Beware of Comparison Shopping: Focusing only on the differences between available options can lead consumers to overlook the importance of how a product will actually affect their happiness.
8. Follow the Herd Instead of Your Head: Other people’s experiences can be a valuable guide to what will make us happy.
The authors argue that while money can indeed buy happiness, it often doesn’t because people do not spend it in ways that actually increase their happiness. By following these principles, they suggest that individuals can make more fulfilling spending choices.
Conclusion:
> 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.
Is that a grammatically sound sentence?
I have enough money where working is optional and that makes me happy. Incidentally, I am not employed at the moment.
The short version of this is:
> People are not very good at predicting what will bring them (enduring) happiness / joy.
The bullet list of recommendations are a bit of a sideways approach to lead you into things like building meaningful relationships/connections, experience life alongside people that mean something to you, work towards having autonomy (be efficient with your spending, don't waste money, delay consumption if it means being able to invest and have greater freedom in how you spend later).
re: delaying purchases. Someone I worked with years ago told me about how they shop for stuff that I found immensely helpful.
When they find something interesting online, they add it to their cart but do not check it out for two weeks.
If they're still interested in the thing then, that means that they are more likely to use it, which justifies checking it out and buying it.
If they are wondering why that's in their cart by then, then they avoided an impulse purchase for something that would likely go unused.
This has helped me better understand my avoidance of interest-free credit (assuming one has the option to pay in full). In theory, I get to have the item and a majority of my cash in my pocket with little downside. I reason that it's a burden I have to service and potentially the start of a slippery slope towards embracing credit facilities.
Having money solves money problems. A huge chunk of people worldwide are struggling because of money problems, so of course money will make them happier. Others have problems that have nothing to do with money, and for them "just spend more wisely, duh" is idiotic advice.
So the answer to "does money make people happy?" (on in this case "does using money correctly make people happy?") is – first tell me why they are unhappy.
> research suggests that people are often happier when they spend their money on experiences rather than things
I concur.
I’d say if money doesn’t provide a stable platform for seemingly reliable dissolution of your unhappiness then probably you aren’t spending it enough.
Paper without date on it? Authors credentials not listed?
Money can't Dance
Just saw this as a grafitti. So true.
What if people don't actually want money and want upward social mobility which is correlated with money?
See also The Psychology of Money by Morgan Housel:
* https://www.goodreads.com/book/show/41881472-the-psychology-...
* one of many interviews: https://rationalreminder.ca/podcast/128
And the current results from an on-going 80+ year Harvard study:
* https://www.goodreads.com/book/show/61272271-the-good-life
> The Harvard Study of Adult Development has established a strong correlation between deep relationships and well-being. The question is, how does a person nurture those deep relationships?
* https://www.theatlantic.com/ideas/archive/2023/01/harvard-ha...
* https://www.adultdevelopmentstudy.org
Minimizing regret is also an interesting topic:
> Human beings are undeniably complex, and what motivates us can often be a mystery, even to ourselves. So, how do we go about gathering and analyzing the data that will help us answer the most fundamental questions about our lives and our purpose? The answers may lie in an unexpectedly rich source of knowledge, our regrets. While regret is likely to have a decidedly negative connotation for most of us, it is also extremely powerful and can teach us a great deal about ourselves and what we value. It is an emotion that is present in all of us, and social scientists (like anthropologists and sociologists) have been fascinated by the subject for decades. Today on the show, we are joined by one such expert, Daniel Pink, author of the book The Power of Regret: How Looking Backward Moves Us Forward. In our conversation, Daniel shares details about the research he conducted for his book, how he determined the four main categories of regret, and what we can learn from our regrets by confronting them head-on. We also discuss Daniel’s 2011 New York Times Bestselling title, Drive: The Surprising Truth About What Motivates Us, and what he thinks about working from home in light of the COVID-19 pandemic. Daniel is an exceptional storyteller and is highly knowledgeable on the subjects of regret, motivation, and the important role they play in our lives. To learn more about the many facets of regret and how it can help you thrive, be sure to tune in today!
I think the first part of this misses the point of both money and happiness.
The ultimate goal of any life form we are aware of here on Earth is proliferation of the genes it carries, whether that be by individual longevity, reproduction, or longevity and reproduction of closely-related individuals that carry the same genes. Emotions seem to have evolved as a means of motivating behavior toward better adaptive fitness, in an obviously imperfect way because the system has nowhere near perfect information. Maybe you can broadly class emotions and motivations into good and bad or reinforcing versus dissuading, but not all good or reinforcing emotions are happiness.
Simply put, people act with other ends and this includes acquiring money for reasons other than to become more happy. For some reason or another, at least since Aristotle there seems to have been this widespread assumption that all other motivations are only intermediate motivations and happiness is the only terminal motivator. We want power because it will make us happy. We want security because it will make us happy. This seems obviously false to me. I personally do and observe others doing many things that I know will not make them or me happy and I don't think these are wrong or dysfunctional behaviors. Many of the successful people who ever lived were not happy. Michael Jordan and Kobe Bryant were perpetually pissed off and miserable. Look at Lamar Jackson before and after the Christmas Day game with the 49ers. Before the game, he complained to the press that the Ravens were being overlooked and deserved to be favored. They win and everyone is now rating them as the best team in the league and he responds by saying he doesn't buy it and thinks they proved nothing. What gives? He obviously needs some chip on his shoulder for motivation and it doens't matter if his reasoning stays consistent or sane. Win or lose he'll be unhappy because he needs to be unhappy to win. Happy people don't obsessively fixate to the point of alienating friends and family on an activity that damages their own health and longevity. Winners do. Happiness is not the end goal here. Winning won't bring satisfaction. Winning in itself is the terminal motivator.
Money works the same way. Elon Musk and Jeff Bezos both hope to grow more zeroes at the end of the bank accounts in part because they want to fund moonshots but also just because of a primeval dick-measuring instinct to be #1 at everything they ever try to do, because genes in human males of the past that induce that kind of behavior produced men who had a lot of children and killed other men's children. Why does the money not make them happy? Because if it did, they'd have stopped making more of it hundreds of billions of dollars ago after they finished satisfying all of the reasonable human needs and desires that are more specific than "be better" and "do more."
Money is nonetheless positively correlated with happiness because, as they say, having it means you can buy stuff. Some things you can buy include better health, better security, better education and housing for yourself and your family. These happen to be things that remove particular causes of unhappiness, but they don't remove all of them. Some of them can't be removed. Some people are unhappy because of irrational brain states induced by pathology and nothing that be bought given today's understanding of neurology and psychiatry can ever change that. But some sources of unhappiness aren't removed because not all sources of unhappiness are bad things that the money-owner wants to remove. These people don't want to be happy. They want to be great. They want to win. No matter how much greatness they achieve and how much they win, many if not most will never achieve enough because if such a thing was even possible they would never have been as insanely motivated to achieve what would have been enough.
This is nothing to do with human psychology. This is a far more basic fact common to all life. No amount of profliferation is ever "enough." The pithy Agent Smith nonsense about non-human, non-virus life reaching a natural equilibrium with its environment is not true. All life will consume all available resources and then look for more. The reason temporarily stable ecosystems exist is because predator-prey population dynamics and competition between predators keep any single population from ever becoming too successful, not because it doesn't want to be more successful but because external constraints stop it.
This is exactly why we recoil from fictional tales like Brave New World, think of wireheading as a bad thing, and socially discourage heavy consumption of euphoric drugs. Some part of us instinctively understands that happiness isn't the point and can itself be counterproductive because we need some amount of unhappiness to stay motivated to do what we are actually here to do, which isn't be happy. Yet we still see research projects like this attempting to explain why people living with abundance are not happy. The only reason abundance exists is because no amount of it can ever be enough.
I came across this paper a decade plus ago and it stuck with me. Specifically, there were a few things:
1. We derive pleasure from anticipation, so ensure there are a number of things to look forward to.
2. Likewise we derive pleasure from looking backwards -- so the above is a two-for-one.
3. When making decisions in realtime, we tend to slip into "reptile-thinking" and that in turn leads to unhappy-decisions. They cite a snickers bar versus an apple. So try to make more decisions upfront, aligning them with your goals. e.g. bulk cook versus figure out lunch daily.
4. Day-to-day life has a huge impact on our happiness but we often architect it in ways that make us unhappy. e.g. moving into a big house in the burbs and therefore having a long commute. Think about our goals and design daily life so they flow more readily.
Edit to add my own twist on the paper and a challenge:
If you're so smart, why aren't you happy?