I came across a paper by Elizabeth Dunn titled “If money doesn’t make you happy, then you probably aren’t spending it right”.

Previously, I shared research that indicated that on average in the United States, the sweet spot for being happy on what you earn is $70,000 a year.  That may not sound like a lot of money but researchers found that making more than $70,000 on average did not increase happiness in the opinion of those who participated.  Obviously, the number to be happy in Hawaii is higher.

Dunn proposes 8 principles to help get more happiness for the buck.

1. Buy more experiences and fewer material goods.
2. Use your money to benefit others rather than yourself.
3. Buy many small pleasures rather than fewer large ones.
4. Eschew extended warranties and other forms of overpriced insurance.
5. Delay consumption.
6. Consider how peripheral features of your purchases may affect your day-to-day life.
7. Beware of comparison shopping.
8. Pay close attention to the happiness of others.

So we know that making above a certain amount doesn’t make us any happier, but that there are at least 8 ways to get more bang for our buck on what we earn.

Recommend these day starters to friends and family here.