How you spend your money affects your happiness!

How you spend your money affects your happiness!

So you have some extra cash in your pocket. Do you spend it on the latest gizmo or on going to a restaurant with friends? How does your choice affect your happiness?

Money as an Inexact Surrogate

Given that January is synonymous with high street sales, I want to share some up-to-date research on how spending affects happiness.

Positive psychologists sometimes get hot under the collar when discussing the role that money plays in individual happiness. The research into wealth and well-being suggests that above a relatively low level of income (which in 2002 was estimated to be about $10,000 per year), your happiness doesn_ã_t increase significantly. At the same time the average reported well-being is higher in wealthy nations than it is in poor ones. Ed Diener and Martin Seligman summed it up nicely when they said, _ã–Money is an inexact surrogate for well-being, and the more prosperous a society becomes, the more inexact a surrogate income becomes._ã

Interested in reading more about the link between happiness and money from Positive Psychology News Daily? Just click here