As the saying goes, Money alone cannot buy happiness. But money can buy, what makes people happy. This was shown by numerous studies to this subject by Elizabeth W. Dunn of the University of British Columbia, Daniel Gilbert of Harvard and Timothy D. Wilson of the University of Virginia. Here are eight ways how spending money really makes you happy.
1. Prefer memories over products
While material things are quickly perceived as boring, the memory or traveling or attending concerts last longer.
2. Spend money for others
There is no indication that people are happier when they simply spend more money for themselves. But anyone who donates parts of his income or purchases gifts for others, is happier on average. There is neuroscientist evidence that people who are asked to donate to a local charity, have brain activity in regions of their head that are also active when people are rewarded.
3. Buy less insurance
The research of Mr. Gilbert shows that people deal much better with disasters than they would believe. He speaks of the psychological immune system. In contrast, buying extended insurance warranties that extend the guarantee of a product is not always useful.
4. Pay now, consume later
Anticipation is the greatest joy! The great thing about anticipation: It often makes you even happier than the actual event itself.
But many people pay for their purchases with credit cards. That means: Consume now, pay later. The nuisance of having to pay is pushed into the future, which is supposedly not as bad. Experiments show that this is not the case.
5. Pay attention to the “unimportant” things
People make poor judgments regarding their future happiness feelings of purchases and tend to overestimate some of them. In other words they think buying a product makes them happier, than it actually does. That’s why you should think about in detail how you would actually use the product in everyday life. You may be surprised!
6. Buy many small amenities, instead of a few large luxury items
Little pleasures, great happiness: Treating yourself to something frequently is more important than quantity, number or scope of the item. An experiment showed that people prefer short frequent massages over a few long ones.
7. Do not compare too much
Research shows that people comparing different offers prior to a purchase mainly focus on the price. It would make them much happier to spend a little a more and get better quality. The quality difference of product is often not obvious at the moment of purchase but comes out later through the use of product. In Germany there is a saying: “ Who buys cheap, buys twice!”
8. Follow the crowd
Experiments show: Those who rely on the experience of others have a better chance to invest their money properly – and to be happy with a purchasing decision. The abundance of consumer reviews for all kind of products and services on the web is therefore very helpful.
Source: Sueddeutsche Zeitung; November 20, 2012: So macht Konsum gluecklich
