In their book, Happy Money: The Science of Smarter Spending, Elizabeth Dunn and Michael Norton draw on years of quantitative and qualitative research to explain how we can turn cash into contentment. The key lies in changing our spending habits and adhering to five key principles:
1. Buy Experiences. Research shows that material purchases are less satisfying than vacations or concerts.
2. Make it a Treat. Limiting access to our favorite things will make us keep appreciating them.
3. Buy Time. Focusing on time over money yields wiser purchases.
4. Pay Now, Consume Later. Delayed consumption leads to increased enjoyment.
5. Invest in Others. Spending money on other people makes us happier than spending it on ourselves.
Authors: Elizabeth Dunn, Michael I. Norton
Source: “Harvard Business School (HBS) Working Knowledge”
Subject: Personal Development
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