There are a lot of skeptics out there – don’t let them tell you what money can or can’t buy! I’ve always been a believer of the fact that money spent right brings happiness, but of course it’s not the panacea for all the problems out there.
Over the years, I’ve seen several research papers and read books about it and a lot of those resonate with me. One of the first studies I came across had the point of diminishing returns at $75,000 – the 2010 research talks about evaluation of life and emotional well being and how money affects those.
So those of you who’re reading this article and make more than 75K (adjusted for inflation this would be more like 85K in 2017), let us know in comments whether life has gotten happier after the magic income.
Then I saw the fascinating research of Michael Norton (see his TED talk below) about how can money buy happiness – when you spend it on someone else. The speech highlights specific data points and details of the experiments that were performed.
- Buy Experiences
- Make it a Treat
- Buy Time
- Pay Now, Consume Later
- Invest in Others
Taking examples from my life, I’d be lying if I said I donate money for selfless reasons [it does feel good to help others, thus helping oneself). I’ve also written about enjoying experiences in life more than buying things. Even simpler pleasures in life such as using dishwasher that frees up time adds to the happiness (#3 from the list above).
What are some of the ways you’ve spent money that made you feel happier?