I think the relationship between money and happiness is one of the most interesting, most complicated, and most sensitive questions in the study of happiness. Studies show, unsurprisingly, that money’s impact on happiness is greatest when you have the least amount of money.
But if you’re one of the lucky people who has enough money to cover the basics—food, shelter, even a car—does that mean that money can’t make a difference to your happiness? Some happiness experts argue yes, but I think that’s … ridiculous.
The secret for using money to buy happiness is to spend money in ways that support your happiness goals. Imagine that you have a certain amount of extra cash. How should you spend it?
One option: a fancy new TV set. Enticing. The fact is, however, that the new TV won’t give you much happiness bang-for-your-buck. The hedonic treadmill describes our tendency to adapt quickly to changed circumstances—which means you’ll get a big kick out of the TV for a short while, but you’ll soon take it for granted.
The hedonic treadmill means that buying stuff isn’t very satisfying, but there are ways to spend money that are likely to help give you enduring happiness.
1. Strengthen bonds with family and friends. Studies show that having close relationships is one of the most important elements of a happy life. Pay for a plane ticket to visit your brother’s new baby, go to your college reunion, or throw a Superbowl party.
2. End marital conflict. If you’re constantly arguing about the unkempt lawn, or the moldering laundry, see if you can throw some money at the problem. Can you hire the teenager down the street to clean out the garage?
3. Upgrade your exercise. 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 a new pair of yoga pants will make it easier to get yourself off the couch, that’s a good happiness investment.
