Well, I think "How to buy happiness" would be a more constructive topic for discussion here on fatwallet finance, but the basis of my title comes from an interesting research paper I stumbled upon today from the MIT Press:
Brief excerpt: An enduring paradox in the literature on human happiness is that although the rich are significantly happier than the poor within any country at any moment, average happiness levels change very little as people’s incomes rise in tandem over time.1 Richard Easterlin and others have interpreted these observations to mean that happiness depends on relative rather than absolute income.2
In this essay I offer a slightly different interpretation of the evidence–namely, that gains in happiness that might have been expected to result from growth in absolute income have not materialized because of the ways in which people in affluent societies have generally spent their incomes.
In effect, I wish to propose two different answers to the question “Does money buy happiness?” Considerable evidence suggests that if we use an increase in our incomes, as many of us do, simply to buy bigger houses and more expensive cars, then we do not end up any happier than before. But if we use an increase in our incomes to buy more of certain inconspicuous goods–such as freedom from a long commute or a stressful job–then the evidence paints a very different picture. The less we spend on conspicuous consumption goods, the better we can afford to alleviate congestion; and the more time we can devote to family and friends, to exercise, sleep, travel, and other restorative activities. On the best available evidence, reallocating our time and money in these and similar ways would result in healthier, longer– and happier–lives.
[Appended from my later post]
If possible I'd like to go beyond the philosophical or a discussion of only the research itself and actually brainstorm ideas for "long term happiness bang for the buck" if such a thing makes any sense. The goal is to devote more time "to family and friends, to exercise, sleep, travel, and other restorative activities" with the result of "healthier, longer– and happier–lives" (to quote the above article).
The things already mentioned in the research are the obvious (save money instead of wasting it, so you can ultimately work fewer hours. Find a job and/or house that enables shorter commute times. Do not move towards isolation - i.e. no neighbors).
Happiness and long life are highly correlated. Many of the ideas for achieving both involve reducing stress. This recent article on aging covers many of the categories mentioned in the Robert Frank article.
Some other ideas:
Category - exercise
Join some amateur sports team or activity. Not only is it great exercise, but it can make for good comradery with friends. A friend of mine just got really into road biking - he does this with coworkers several times a week. My brother races "quads" with his father in law. I joined an indoor soccer league last winter (hadn't played soccer in over 15 years, and there were people there of all ages). I also took up kayaking a couple years ago, which ties in well with camping vacations (which are also cheap by the way!). To me, hiking & camping, going out in nature, are very "restorative".
Category - family
I'm a big believer in "the family vacation", which is typically a week out of the year, but if you can get away with it, do it more often. Anyway, one of the most memorable vacations I've taken was actually a trip my wife and I took with my in-laws. We rented a house (cheaper than hotels and more amenities!) in a tropical island, and had a blast. One thing we do is take "crazy pictures" (funny pictures) which just seems to make the whole experience all the more fun and memorable. Anyway, even though its been a couple years, every time I think about that vacation I can't help but smile. I think another thing that contributes to happiness is trying new things, and perhaps just as worthwhile - being with people you love when they try new things (which incidentally, I think is where the major joy of raising your own kids probably comes from - even though I don't have kids of my own yet). For example, being with my in-laws as they experienced snorkeling and deep sea fishing for the first time was immensely entertaining.
Another in this category: You would not believe how many strange reactions I get when I tell people every Wednesday night is "date night" with my wife. "Why do you still date, aren't you already married?" or "Every week?". Yes, once a week "date night" with the spouse definitely fills the "happy" meter, plus its something to look forward to in the middle of the week. And no, we aren't newlyweds. In fact, we didn't invent date night until after several years of marriage. Throwing something crazy into the mix is always good for creating memories that will last a lifetime, but they don't always have to be elaborate either. Making a meal together, or just going for a walk while discussing something interesting all qualify.
Finally - an idea I think my wife and I invented that may sound strange but you should try it. This could just as easily be in the friends category by the way... Rent a comedy movie, and decide ahead of time that you are going to laugh at everything, even if it isn't really funny. The mere fact that other people are laughing will force you to laugh anyway, this is SO MUCH fun. Just make sure everyone in the room is fully on board with the concept before the movie starts or you won't get the desired effect. The thing is, you won't know at the end of the movie if it was actually a great comedy, or if you just made it feel like one. Either way - you will have a great time and feel great afterwards. I think laughter is probably one of the best things you can do for your physical & mental health. One thing I've heard of is "laughter groups" which seems almost a little TOO odd but I wouldn't mind trying it ONCE maybe. These groups of people just get together and start laughing - at absolutely nothing. At first its forced, but after a few seconds, you can't control it and you are just laughing because everyone else is. It's supposedly very therapeutic, but I don't know how you find these groups or where they exist (I'll probably stick to the movie idea).
Category - friends
I think just spending more time with friends and neighbors is key. I know its almost cliche now, but since the whole poker craze began, I've been playing cards with neighbors once a month (about 10 guys). I definitely enjoy this a lot and would consider it "restorative". Assuming your skills are as good as everyone else's this shouldn't cost you any money over time. That's what they keep telling me anyway
Inviting groups of people over for "game night" also falls in this category. These can be some of the most entertaining nights of the year. Also a good way to get to know new people. Some games that are good for this: Cranium, Scatergories, Mad Gab, I know there are many others... with smaller groups, yahtzee, dominos, card games, etc. millions of great choices.
Vacations, cookouts, camping, hiking, etc. can all apply to the "friends" category.
Category - sleep
OK - it might seem odd to even include this category. But I have a couple of thoughts on this. First - I am a much happier person when I get 8 hours of sleep. I've actually done a LOT of "sleep research". Not everyone has the same sleep requirements, some only need 7 hours, others need 9. If you find yourself "sleeping in" on weekends (or sleeping longer), its actually a sure sign that you aren't getting enough sleep during the week. Your health suffers when you don't get enough sleep.
Dreaming - somewhat unrelated to the above, but another hobby of mine that falls into the "sleep" category is Lucid Dreaming. I don't want to divert the thread into something off-topic - so if you are interested - just follow my link and/or see if your library has the book "Exploring the World of Lucid Dreaming" by Stephen LaBerge, Ph.D. and Howard Rheingold. There are many books on the subject, but this is the best (and incidentally, the only book on the subject I've found to be worth reading!). Anyway, most people don't realize that you can even increase your happiness WHILE YOU SLEEP!
Category - giving
This is the only category not mentioned in the original article. Anyway, I think giving to charity is another way to "buy happiness" so to speak. Things like habitat for humanity (helping to build a house for someone in a desperate situation), or the million other service organizations out there. I'm involved with Big Brothers Big Sisters where I mentor a boy - we basically just get together a couple times a month - play baseball, watch movies, hang out. There are millions of kids growing up with no father present - while you might not think you can do anything to make a difference - you can. Similarly I give financially to causes that help underprivileged children in 3rd world countries. Note: I don't give either time or money because I expect "happiness" out of it, I just think that the more people in general who give, the better off society is - which leads to higher overall "happiness". I also think everyone's quality of life improves when there are fewer people living in desperation or involved in crime, etc. I'm also motivated because I am a Christian, and I just know inside it's the right thing to do.
Well - I've rambled for way to long... I would really love to see others' ideas as I've never really come across a discussion like this before.
I know some people are wondering, "What's this have to do with finances?" And my response is: "EVERYTHING".
To enter a coupon code in your post please enter the following info:
Coupon Code:
Coupon Offer:
Merchant:
Expires (optional):
Restrictions (optional):
saving...
Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.
While I don't agree with most Americans' desire for more and more "stuff", I do not want to talk them out of their obsession. Our investments depend on people buying their way to happiness!
MarketVViz said:Well, I think "How to buy happiness" would be a more constructive topic for discussion here on fatwallet finance, but the basis of my title comes from an interesting research paper I stumbled upon today from the MIT Press:
Brief excerpt: An enduring paradox in the literature on human happiness is that although the rich are significantly happier than the poor within any country at any moment, average happiness levels change very little as people’s incomes rise in tandem over time.1 Richard Easterlin and others have interpreted these observations to mean that happiness depends on relative rather than absolute income.2
In this essay I offer a slightly different interpretation of the evidence–namely, that gains in happiness that might have been expected to result from growth in absolute income have not materialized because of the ways in which people in affluent societies have generally spent their incomes.
In effect, I wish to propose two different answers to the question “Does money buy happiness?” Considerable evidence suggests that if we use an increase in our incomes, as many of us do, simply to buy bigger houses and more expensive cars, then we do not end up any happier than before. But if we use an increase in our incomes to buy more of certain inconspicuous goods–such as freedom from a long commute or a stressful job–then the evidence paints a very different picture. The less we spend on conspicuous consumption goods, the better we can afford to alleviate congestion; and the more time we can devote to family and friends, to exercise, sleep, travel, and other restorative activities. On the best available evidence, reallocating our time and money in these and similar ways would result in healthier, longer– and happier–lives.
I like this excerpt so much that I have saved it in MS Word as a document, and am planning on sharing it with friends & family.
I believe that is one of the most efficient and intelligent statements on the correlation between money and happiness I have ever read.
Many times, I've repeated one of the wisest quotes re: wealth I've ever heard. And it comes from a source you wouldn't necessarily expect to be very introspective: Paul Stanley, lead singer of KISS. He said, "... all money makes possible is for you to stop worrying about money. Then you have freedom to live your life."
BTW, I couldn't remember the exact quote, but dug it up on this site of quotes re: money. Link
I wish that there were an adjective to describe people who can see further than the consumeristic hype, those who use money for leverage, for power, for freedom, etc., rather than to simply buy stuff.
Bob Frank is a very smart guy. More important, he writes insightfully in the area between applied economics and moral philosophy where too little work has been done. His work on the "winner takes all" trend in the contemporary economy has been especially influential. Good to see him turning his attention to the relationship between wealth and happiness.
I remember reading that some poll asked people how much income they made, and how much they would need to be "happy". Apparently the result, largely independent of the absolute level of income, as "twice as much as I currently make". Fits right in with OP's view that spending money on all the stuff you're hoping for never gets you there, since most people just keep finding new stuff they think they need.
Substituting inanimate objects for “real” happiness is the path of least resistance between now and the inevitable end of our existence. Assuming you’ve got the wherewithal, it’s always less painful accumulating junk--since cultivating relationships is precarious and emotionally expensive. Facing “real” life hurts.
And what is our reward for buying all that crap we don’t need? Merely a fleeting, euphoric rush, followed by guilt. The euphoria never lasts long enough, but if we buy enough garbage often enough, before we realize it, too late: times up. But we’ve accomplished our real goal: avoidance. And just before the end we pray this really was all just a dress rehearsal.
All right. So beat me with a wet noodle for bringing everyone down.
It's funny that we need to remind ourselves in this country that we cannot buy happiness when we save only 1% of income (shouldn't we already know)....at the other end of the spectrum are countries like Singapore and China where savings are up to half of their very small income. I wonder who is happier?
I regard money as a means of getting my life set up in such a way that I'll need very little of the stuff: Tiny solar-powered house on a piece of land big enough for a good vegetable garden (which is year-round here in N. CA), so I can keep expenses within the bounds of my pension, social security & whatever investments I'll have cobbled together by then. Budget projections look very encouraging, as my needs are few and wants are minimal.
tooshy said:It's funny that we need to remind ourselves in this country that we cannot buy happiness when we save only 1% of income (shouldn't we already know)....at the other end of the spectrum are countries like Singapore and China where savings are up to half of their very small income. I wonder who is happier?
Looking at some happiness statistics on the web countries with high savings like China are not exactly high on the scale either. Another reason for high savings in Asia is a lack of social security.
Below are links to happiness by country statistics
GermanExpat said:http://news.bbc.co.uk/1/hi/world/africa/3157570.stm Hmm, Nigeria is on the top of that happiness list! I bet it's just another scam to get us to visit their country and help the residents with their various banking woes. How can they be happy when they are so close to liberating their uncle's $40M but I keep refusing to help them? (I looked around more, and Nigeria really did rank 1st!)
xerty said:GermanExpat said:http://news.bbc.co.uk/1/hi/world/africa/3157570.stm Hmm, Nigeria is on the top of that happiness list! I bet it's just another scam to get us to visit their country and help the residents with their various banking woes. How can they be happy when they are so close to liberating their uncle's $40M but I keep refusing to help them? (I looked around more, and Nigeria really did rank 1st!)
and look in Nigeria all they wanna do is buy out motorcycles, cars, and other costly items and pay with Western Union. That is what makes them happy when people actually ship the items.
GermanExpat said: Looking at some happiness statistics on the web countries with high savings like China are not exactly high on the scale either. Another reason for high savings in Asia is a lack of social security.
Below are links to happiness by country statistics
Most surveys confirm that money does not buy happiness.
Thanks for doing some searching for us....an interesting excerpt from the second article:
The researchers for World Values Survey described the desire for material goods as "a happiness suppressant".
They say happiness levels have remained virtually the same in industrialised countries since World War II, although incomes have risen considerably.
The exception is Denmark, where people have become more satisfied with life over the last three decades.
Happiness suppressant...interesting way of putting it?
Notice the happiest countries as the study mentioned are those that permit a high degree of personal satisfaction and personal expression. However, I think it may be a bell shaped curve where we reach a certain plateau and to keep from falling backward we need to make good lifestyle choices as well as have favorable governmental policy. I think we are probably on the downward slope of the bell curve right now. The article mentioned that policy makers are interested in happiness surveys...that's good news.
About Chinese savings, you are absolutely correct. The reason is the lack of social security as they transition from their birth to grave government reliance. We should take a hint here if we proceed too far with Bush's ownership society, that it may create insecurity, however for Americans who save too little maybe that's a good thing.
If a child was born into this world with an ownership of a piece of the society's wealth, how happy would this person be as opposed to someone who was born with nothing?
Frank's thought experiment between two societies that make different choices intentionally obscures a critical factor: whether those choices are made freely by individuals or imposed on individuals by government. It seems obvious to me that the latter would decrease happiness, and it's not obvious whether the inherent advantages of the alternate choices would outweigh the happiness decrease caused by reduced freedom. Better to just ignore the freedom aspect, as Frank does.
Frank's article does, however, make an important point about the cost of congested commutes. He unwitting makes a great case for widening roads and for the sale and development of extensive public landholdings in suburban areas. Parks are great, but they give less happiness than congested commutes take away.
Funny that Frank blames the free market for making the wrong decision, when the lack of adequate road capacity is strictly a function of government. Oh well, we all have our ideological blind spots.
Frank's central findings on mistaken estimation of future happiness are fascinating. I just wish he hadn't overreached with the social science BS.
Here's a thought experiment: Suppose Society A is populated with Humans that buy houses averaging 4000 square feet through their own individual choices, and Society B is populated with Aliens that buy houses averaging 3000 square feet through their own individual choices. How can we change Humans into Aliens?
Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.
)....at the other end of the spectrum are countries like Singapore and China where savings are up to half of their very small income. I wonder who is happier?
I bet it's just another scam to get us to visit their country and help the residents with their various banking woes. How can they be happy when they are so close to liberating their uncle's $40M but I keep refusing to help them? (I looked around more, and Nigeria really did rank 1st!)
