The Art of Investing In Personal Happiness

Some lucky people are born with a happy outlook on life, in the same way that some people are born wealthy.  These people are able to face each day with optimism, even when life brings adversity.  If you’re not one of those lucky few, don’t think that daily happiness is out of reach.  Just like material wealth, happiness is something you can plan for and work towards.

You can make investments today which will lead to future happiness.

When I say “investments,” I mean monetary investments.  Of course we’ve all heard that money can’t buy happiness. However, some current studies show that money can be used to help bring long-term happiness.

Here are some examples of monetary investments that can bring dividends of happiness:

Invest in experiences rather than things.

A recent San Francisco State University study found that experiential purchases, such as dinner out with friends or tickets to a theater performance, can give us an increased sense of well-being.  When the experience involves other people, we’re satisfying our need for social connection.  Satisfying this need on a regular basis is a fundamental aspect of good mental health and emotional well-being.

The study also found that purchased experiences add to our “memory capital” in a way that material objects can’t.  When we buy new objects, the thrill usually wears off in a matter of days or weeks.  In contrast, pleasurable experiences continue to make us happy for an indefinite period of time.  When we remember the experiences, we relive the pleasure that they brought us.

Pleasurable experiences invigorate us and renew our sense of being alive in a way that material objects can’t. Life becomes richer and fuller because of these experiences and our memories of them.  Think about the kind of experiences that give you the most pleasure and then work them into your budget.

Invest in others.

A social-science study of 200 individuals which began in Oakland, California in the 1920s and continued over a period of 80 years found that people who were generous in giving to others had a real sense of making a difference in the lives of others.  They also had a strong sense of self, were physically and mentally healthier, and were happier.

Another recent study conducted by researchers from the University of British Columbia and the Harvard Business School found that people who spend a higher percentage of their income on other people report themselves to be happier.  This was true across all income levels.

Giving may take the form of donations to charity or gifts to others.  The study also found that spending even as little as $5 on someone else can provide a greater feeling of well-being than spending the same amount on oneself.  Making a difference in someone else’s life by spending money on a gift or donation is an easy way to find some happiness.

Invest in your health.

Good health and happiness are strongly linked.  Investing in healthy living is another way to bring more happiness into your life.  One of the most obvious ways to invest in good health is to avoid habits that abuse health, such as smoking, overindulgence in alcohol, eating unhealthy foods, and lack of exercise.

Spending money on wholesome food and fitness is a positive way to invest in good health.  If buying a piece of exercise equipment or a pair of training shoes will motivate you to work out, then fit it into your budget.  Another area of health investment is in medical and dental checkups.  Scheduling checkups when you’re not feeling sick may seem like a waste of time and money, but taking a preventative approach to illness is one of the best ways to ensure continuing good health.

Several long term studies have found that happiness can actually fight illness, since chronic unhappiness causes stress which reduces the immune response to disease.  By helping the body to fight illness, happiness increases longevity.  Working towards long-term happiness may actually add years to the length of your life.

Invest in relationships.

Most happiness experts agree that one of the most important factors in a happy life is the presence of loving relationships.  People who are satisfied with life tend to have close and supportive relationships with family and friends.  For many people, loving relationships don’t come easily.  Some hard work may be required to keep relationships thriving.

Spending money on strengthening relationships with others is money well spent.  It may take the form of planning a trip to visit a relative, attending a reunion, or throwing a party for friends.  Spending time on relationships is another important way to keep them strong.  Take time to send email, make phone calls and get together.  Nurturing the relationships in your life is a worthwhile investment of time and money.

Invest in peace of mind.

Maybe you’re losing sleeping at night worrying about your spending habits.  According to the American Psychological Association, three fourths of adults report feelings of stress about money.  It’s hard to find true happiness with this type of stress.  Facing your spending problems head on and creating a budget will allow you to know where your money’s going.  A budget can also help you to plan how to spend more money on the things really make you happy.

If worrying about retirement or credit card debt is keeping you from happiness, then set a financial goal to save more money and decrease your debt.  This may seem impossible in your current financial situation, but with some creative thinking you can come up with ways to spend less or earn more.   If you have a big financial goal like a new car or home, creating a financial plan and sticking to it can get you to that goal sooner.  When the goal is important to you, there will be a deeper sense of satisfaction in attaining it by reducing spending on unnecessary possessions and investing instead in things that increase your true sense of happiness.

“Ordinary riches can be stolen; real riches cannot.  In your soul are infinitely precious things that cannot be taken from you.” Oscar Wilde

Posted on August 20, 2009