Buying Happiness

The relationship between money and happiness is one of the most complicated, most sensitive and most interesting topics in the study of happiness.

Unsurprisingly, studies show that money’s impact on happiness is greatest for people who have the least amount of money. But for those lucky people who have enough money to cover the basics — food, shelter, a car — does that mean that money can’t make a difference to happiness?

Some happiness experts argue yes, but I think that’s…well, ridiculous.

The secret to using money to buy happiness is to spend money in ways that support one’s long-term happiness goals. As a financial services provider, you might find this principle useful for keeping customers and members loyal today.

Imagine that a consumer has some extra cash. How should he or she spend it? One enticing option: a new flat-screen TV. In truth, this new TV probably won’t deliver much happiness bang for your buck. The “hedonic treadmill” describes our tendency to adapt quickly to changed circumstances, which means we typically get a big kick out of things like TVs for a short while, but soon take them for granted.

Put another way, buying stuff isn’t satisfying for long. However, there are ways to spend money that will deliver happiness that endures. In addition to helping them sock away money for the future, you should encourage clients to invest a portion of their money toward potential sources of permanent happiness. Here are eight good places to start.

1. Strengthen bonds with family and friends. Studies show that having close relationships is one of the most important elements of a happy life. That might mean springing for a plane ticket to visit a sibling’s new baby or attending a college reunion, or maybe just staying put and throwing a great Super Bowl party.

2. Minimize marital conflict. If ongoing arguments arise about the unkempt lawn or the moldering laundry, why not throw some dollars toward them? Can you hire the teenager down the street to clean out the garage? Seems like money well spent to me.

3. Upgrade the exercise routine. Studies show that one of the quickest and surest ways to boost your mood is to exercise. If spending money on a new iPod, a more convenient gym or some new yoga pants will make it easier to get off the couch, that’s a good happiness investment. Encourage it.

4. Focus on fun. Have a client honestly answer this question: What’s your idea of fun? Whether the response involves fishing, cooking, scrapbooking or something else, get out the calendar and help the customer or member plan something that is just plain enjoyable for its own sake. The joy from a great experience far outlives the fleeting rush of a new physical possession.

5. Promote peace of mind. Financial security minimizes worry, and worry and happiness are diametrically opposed forces. So whenever applicable, urge a customer to throw some extra money toward a nagging debt or a dwindling savings account. 

6. Eat healthy. It is true that fruits, vegetables and other healthy foods cost more than fast food. But is there any better investment than in your own physical well being? Eating healthfully will give you more vim and vigor to enjoy life over a lifetime. It will pay off in the long run.

7. Spend money on someone else. Countless studies show that making someone else happy is one of the best ways to be happy yourself. To this end, help clients brainstorm ways to spend some money that will make a big difference beyond themselves — whether it’s to somebody they know, or to a cause they wish to support. Every public library could use more children’s books.

8. Set personal priorities. Two years ago, some friends decided to forgo an anniversary trip so they could afford a super-expensive Dux bed. I thought this was a bad idea, because the old hedonic treadmill means that they’d quickly get used to it and it would lose its capacity to please. They rave about their fancy bed to this day.

The lesson here is that nobody knows what makes you happy more than you do, and the same goes for your customers or members. So if a client wants to invest in happiness in a way that sounds absurd to you, only push the resistance so far before helping them come up with sound strategies for making it happen.

_{© 2010 Gretchen Rubin}

What did you think of this article? Share your thoughts by joining the discussion below.