• The greatest pleasure we gain from a purchase lies in the anticipation of that purchase. Studies show that vacationers tend to be happier in the weeks before a trip than on the trip. Credit cards?• Simple: Don’t use them. You be able to enjoy the anticipation of a purchase while you save.

Pay Now,Consume Later

The key message in this book: How to spend money for happiness:1. Buy Experiences2. Make it a Treat3. Buy Time4. Pay Now, Consume Later5. Invest in Others

Short Summary

• Spend less on material things such as cars and electronics and use your cash to have experiences, like attending an open-air concert or having dinner out.• Experiences create memories. Each time we enter a concert hall or baseball stadium, we’re filled with sights, sounds and smells that stimulate our senses.• And when we think about our memories, we’re able to relive that experience and feel happy again.

Buy Experiences

• Having money can help you save time by outsourcing chores, for example, such as house cleaning to a service provider, so you don’t have to dust and mop yourself.• With money, you can also purchase time-saving goods.For example, if you love reading and listening to music, you can buy yourself an e-reader and better headphones so that you get more from these activities.

Buy Time

• Other people’s happiness is contagious: when we see the smile of someone to whom we’ve just given a gift, we too feel happy. This deepens our connection with that person.• Donating your money to others is that it also makes you more motivated at work, as you know you’re working for a salary that will make a difference in other people’s lives.

Invest In Others

• First, be aware that these principles aren’t mutually exclusive: apply as many of them as possible for the maximum boost to your happiness.For example, if you treat a friend to a delicious cappuccino, you’re both giving a gift and spending on an experience – a happiness double-whammy• Second, take a look at your expenses and see if you can reallocate some of your spending to happiness-increasing items.• Third, start saving and investing money.

How Can We Apply These Principles?

• When something is abundantly or easily available to us, we appreciate it less.• This means that even your favorite things, like a morning cup of hot coffee, can become less pleasurable if you indulge too frequently.• By LIMITING YOUR ACCESS to the thing that brings you pleasure, you will paradoxically increase its impact.

Make It A Treat

“Spending money on others provides a bigger happiness boost than spending money on yourself.”—Elizabeth Dunn

Two professors combine their fascinating and cutting-edge research in behavioral science to explain how money can buy happiness—if you follow five core principles of smart spending. Most people recognize that they need professional advice on how to earn, save, and invest their money. When it comes to spending that money, most people just follow their intuitions. But scientific research shows that those intuitions are often wrong. Happy Money offers a tour of research on the science of spending, explaining how you can get more happiness for your money. Authors Elizabeth Dunn and Michael Norton have outlined five principles—from choosing experiences over stuff to spending money on others—to guide not only individuals looking for financial security, but also companies seeking to create happier employees and provide “happier products” to their customers. Dunn and Norton show how companies from Google to Pepsi to Charmin have put these ideas into action. Along the way, Dunn and Norton explore fascinating research that reveals that luxury cars often provide no more pleasure than economy models, that commercials can actually enhance the enjoyment of watching television, and that residents of many cities frequently miss out on inexpensive pleasures in their hometowns. By the end of this “lively and engaging book” (Dan Gilbert, author of Stumbling on Happiness), you’ll be asking yourself one simple question every time you reach for your wallet: Am I getting the biggest happiness bang for my buck?

Understand yourself and those around you.

psychology

Psychology

personaldevelopment

Personal Development

moneyandinvestments

Money & Investments

motivationandinspiration

Motivation & Inspiration

books

Books

Two professors combine their fascinating and cutting-edge research in behavioral science to explain how money can buy happiness—if you follow five core principles of smart spending. Most people recognize that they need professional advice on how to earn, save, and invest their money. When it comes to spending that money, most people just follow their intuitions. But scientific research shows that those intuitions are often wrong. Happy Money offers a tour of research on the science of spending, explaining how you can get more happiness for your money. Authors Elizabeth Dunn and Michael Norton have outlined five principles—from choosing experiences over stuff to spending money on others—to guide not only individuals looking for financial security, but also companies seeking to create happier employees and provide “happier products” to their customers. Dunn and Norton show how companies from Google to Pepsi to Charmin have put these ideas into action. Along the way, Dunn and Norton explore fascinating research that reveals that luxury cars often provide no more pleasure than economy models, that commercials can actually enhance the enjoyment of watching television, and that residents of many cities frequently miss out on inexpensive pleasures in their hometowns. By the end of this “lively and engaging book” (Dan Gilbert, author of Stumbling on Happiness), you’ll be asking yourself one simple question every time you reach for your wallet: Am I getting the biggest happiness bang for my buck?