Book Review: Happy Money: The Science of Happier Spending.
Authors and friends Elizabeth Dunn (associate professor at the University of British Columbia) and Michael Norton (associate professor at Harvard Business School) combine their cutting-edge research in behavioral science to explain how money can buy happiness—if you follow five core principles of smart spending.
Objective of spending money: Most satisfaction/happiness for the dollar.
Conclusion: Five principles
- Buy experiences: Build social experiences and connections, provide memories, adds to life stories and sense of self. Be conscious of the amount of time and effort needed to buy stuff.
- Make it a treat: Familiarity decreases uniqueness and pleasure. It becomes common. Space it out to keep it fresh, interesting and satisfying.
- Buy time: Outsource dreaded tasks. Use the found time to pursue passions.
- Pay now, consume later: There is pleasure in anticipation. Generate positive visions that fill in the cracks in reality.
- Invest in others: Ratio of spending on self vs others, tithing, supporting a greater good.