How money impacts happiness is an age-old discussion that's constantly evolving. With today being International Happiness Day we decided that we'd take a look at the science behind getting joy out of your hard-earned cash. Using research published by Harvard Business School in a report titled 'Time, Money, and Subjective Well-Being', here are four ways you can find happiness in your finances.
1. Invest in experiences
If you're spending money on yourself, experiences generally add more to your well-being than material possessions. When people recall events that they paid for, they show higher happiness and satisfaction levels than when thinking about belongings they've purchased, the report shows.
However, there's one caveat to consider here. If the possession a range of experiences along with it, this might produce different results. For example, your own home means you can invite friends and family over more regularly, or adopt a furry friend, both of which is likely to bring you joy.
2. Buy time
We're so used to spending our time to earn money that the opposite can feel like a foreign concept. However, buying products or services that free up your time can bring you greater happiness than spending the money on material goods, as discussed in the Harvard Business School report. Why not consider getting someone in to clean your house for you? This way, you can use that time for working on your own projects or getting out and enjoying your weekend.
3. Spend money on others
With this year's International Happiness Day theme being '#happiertogether', this option is a great one to try out to help you get in the spirit of things.
Social orientation is a part of the human psyche.This shows with how people generally feel better spending money on others rather than themselves. This positive effect is increased when it's done in person and involves someone you care strongly about, such as a friend or family member. Why not organise to catch up with someone you're close with this International Happiness Day, and shout them a coffee?
4. Match your personality to your spending
If how you spend money fits in with your character, you're more likely to gain happiness from the purchase. This was investigated and shown in 'Money buys happiness when spending fits our personality', a study published in the Psychological Science Journal.
Before making your next purchase, ask yourself how well the product suits who you are. Increase the chances of being happy with your choice by ensuring what you're buying matches your personality.
Money is an integral part of our lives. Even if it cannot buy happiness, the state of our finances often impacts how we feel. If you'd like to ensure your money isn't getting in the way of your happiness, reach out to the team at Money Empire today.