There have been many studies regarding what makes people happy. You might think that the more money people have, the happier they are. Well according to a 2014 WIN/Gallup poll you would be wrong. It surveyed people in 65 countries and found that residents of Fiji were far and away the happiest people on earth despite average incomes well below $15,000 in US dollars. A whopping 93 percent of respondents said that they were either happy or very happy. So, you might be asking what in life provides happiness?
There are no hard and fast rules about what makes people content, but following are some rules of thumb:
- Purchase more experiences, less “stuff” – Research from Dr. Thomas Gilovich of Cornell University reveals that spenders experience more long-term happiness and satisfaction when they buy experiences rather than possessions. A new watch or necklace increases happiness for a short while, but it soon becomes a routine part of the purchaser’s environment, contributing little to happiness and possibly even inducing buyer’s remorse. However, dinner with friends, going to a play, or an Alaskan cruise creates valuable memories shared with others.
- Buy time – Spending money to create more time is another expenditure that tends to raise happiness. If a promotion guarantees a higher income yet a much longer commute, it might not be a good deal. Not only is time a valuable non-renewable resource, but the more time you have, the more experiences you can enjoy!
- Spend on others – Studies by the Chicago Booth School of Business and the University of British Columbia found that people experienced more happiness when they spent money on others. Whether treating someone else to an experience or helping another (including giving to charities), it appears that money is best shared.
- Save your way to happiness – According to a survey of 1025 adults conducted by Ally Bank, the more money people have in savings, the happier they are! Those with savings accounts were 31% more likely to rank themselves as “extremely happy” or “very happy” than those without savings accounts. A notable 57% of those with $100,000 or more in savings describe themselves as “very happy” or “extremely happy,” compared with only 34% of those with less than $20,000 in savings. A healthy savings account gives you financial security which leads to increased happiness.
Attaining happiness is something we all want. However, being happy is more about feeling good about something you do, then having an expensive car or the biggest house. Winning the happiness lottery has nothing to do with luck, it has everything to do with enjoying the moment while feeling secure in your future.
Mario Hernandez has been a Certified Financial Planner (CFP) for over 30 years and brings a vast amount of experience in the financial planning and investment management business. Through Longevity Wealth Management, Mario provides holistic planning services that help clients find solutions to live their best life. Mario’s email address is mario@longevitywealthmanagement.com. Securities offered through Osaic Wealth, Inc. member FINRA/SIPC. Investment advisory services offered through Longevity Wealth Management. Osaic Wealth, Inc. is separately owned and other entities and/or marketing names, products or services referenced here are independent of Oasic. Certain insurance products are offered by Mario Hernandez as a licensed agent independent of Osaic Wealth, Inc.. Mario Hernandez is not affiliated with Osaic Wealth, Inc. or registered as a broker-dealer or investment advisor.
