Money=Happiness and Cash=Contentment?
However, that is not true.
According to Harvard Business School researchers Michael Norton and Elizabeth Dunn it can be done. The wise use of money maximizes the time people have in their lives for enjoyment of life — especialy in a social context with family or friends. When we are generous and invest in other people through spending money on them, the money improves the lives of not only the recipient, but the giver.
In their book Happy Money: The Science of Smarter Spending. they lay out five principles for transforming cash into contentment:
- Buy Experiences – material purchases are less satisfying than vacations, courses or concerts
- Make it a Treat – limiting access to our favorite things empowers us to continually appreciate them
- Buy Time – valuing time more than money creates wiser purchases
- Pay Now, Consume Later – delayed gratification and consumption leads to increased enjoyment
- Invest in Others – spending money on other people makes us happier than spending it on ourselves