Scientific Advice On How To Spend Your Dollar To Buy The Most Happiness

Courtesy of Shawna Sharie

We live in America with two bits of contradictory received wisdom — that you’d be a lot better off if you made more money, and that money can’t buy you happiness. Now two scholars suggest another way of thinking about the relationship between cash and joy: To a large degree, how you spend is just as important as how much you spend. Michael Norton, an associate professor at Harvard Business School and coauthor – with Elizabeth Dunn – of Happy Money: The Science of Smarter Spending, answered questions from Mind Matters editorGareth Cook.

Gareth Cook: What is the biggest misconception people have about the relationship between money and happiness?

Michael Norton: One of the things that my coauthor Liz Dunn and I hear again and again when we ask people about money and happiness is a simple phrase: more is better. In general, we all believe that having more money is going to make us happier. And, while it’s true that having more money doesn’t usually make usless happy, it’s also true that simply having more money doesn’t guarantee happiness. After all, most of us have a friend, family member, or coworker who is relatively wealthy who certainly doesn’t strike us as particularly happy.