How to: be happy (or, why millionaires and minimum wagers are just as fulfilled)
Reading the title, you may think I’m bonkers. How can someone who is stuck in a grease pit or a cubicle, with bills to pay and family to feed, be just as satisfied with their life as someone who can lounge by their private pool? Isn’t the modern dream to be rich and successful? Well, it turns out that after a certain level of annual income, there is very little difference in overall happiness and feelings of success. This line, for the United States, is right around $35,000 per year.
Why does doubling your income not double your happiness past this line? Well, the studies don’t necessarily show that, but I think we can speculate. For one thing, consider that expenses increase as income increases. Somehow, your spending grows to fit what you make. For most of the US right now, it grows to be more than we make. Hence the debt. Consider also that studies have shown that we derive more happiness from money if we use it for an experience rather than an object or expense. This is especially true if the experience is a social one. Let’s say, for example, that you got a bonus of $200. Studies indicate that you’ll get more happiness from that money if you use it to skydive or take an art class or take friends out to dinner than if you upgrade your car or get a new pair of shoes. This seems so obvious, and yet I doubt it is something we think about much. It just seems easier to buy that new pair of slacks then to schedule a personal guide for a rock climbing trip.
So how can we get the most happiness for our money? I’m certainly not advocating using all of your money for outings and experiences. Bills still need to be paid, and a retirement fund is a must.
I will always encourage people to save as much as they can. However, there is always room in a budget for some kind of entertainment. Even if your entertainment budget is $20 for the week, try something new. Rather than seeing two movies, save for two months and do something fantastic. Something you will remember for the rest of your life.
I have excellent news, too. There are a lot of experiences that are practically free. If you already own a bike, a mountain bike trip is just the cost of your energy and maybe a parking permit. If you don’t own a bike, they can be rented for a decent price. I would also encourage checking with friends.
So what is the goal here? How can you be the happiest your money can buy? Pay for experiences, not entertainment or objects. Let me say that again.
Pay for experiences, not entertainment.
We often ignore experiences, like vacations or trips or outings, because we assume they are too expensive. When you look at the math, though, it is probably not as much as you think. Would you rather have cable TV for a month or hang glide? If you honestly prefer T.V. and new shoes, then that is fine. Do what makes you happy. For most of use, though, this isn’t the case. I know it isn’t for me.
Let’s break this down into a plan.
1. What have you always wanted to do?
Write down an experience you want. Personally, I want to skydive, and go on a caving trip again, and hike a waterfall. Consider having a couple options. An easy one, like going to dinner with your whole family, and a harder one, like learning how to sail.
2. How much will this cost?
Do some research. If you can, talk to someone who has done what you want to do. Find out what you will need, and how you can get it, and how much it will all cost.
3. Fund it.
Figure out where you have room in your budget to make room for these expenses. Can you give up delivery pizza or your cable bill? This step will vary greatly based on the level of expense the experience requires. If you need $35 to paint pottery with your kids, this will be easier to get than the $500 for the season of personal snow boarding lessons.
4. Do it.
As soon as you have the money, do it. Don’t let life get in the way or make excuses. If this is something you really want to do, you can’t afford not to do it. We only live once, after all.
——————
Photo borrowed from .sudesh. of flickr. My internet is currently back up, so I’ll be doing my best go get the posts I’ve written up onto the web over the next couple of days.

