Happiness and spending money on others

Happiness and spending money on others

With Mothers' Day just around the corner we thought this article might be of interest … 

by Ashely Whillans from The Life You Can Save

If you found an unexpected $20 bill in your coat pocket this afternoon, what do you think would be the best way to spend this money to maximize your happiness? Take a minute to think about your response. If you imagined spending this $20 on something for yourself — such as indulging in a foamy cappuccino and lunch at your favourite cafe — you might want to rethink your spending decision. In fact, you may even want to turn to entrepreneur Warren Buffet for expert financial advice.

Warren Buffett's advice has been followed by investors world-wide. And while most people are happy to rely on expert opinion when it comes to making money, people consider themselves experts when it comes to spending money, particularly when asked to think about how to spend to boost personal happiness.  Believe it or not, often we're not our own best advocates when it comes to spending money to maximize personal happiness.  Although intuition might indicate otherwise, material purchases often have little to no impact on our personal happiness.

This is where Warren Buffet’s valuable advice on spending money comes into play. Buffet recently wrote an article for CNN entitled, “My Philanthropic Pledge,” suggesting that we should give to charity as a way to enhance our emotional well-being. “Too often,” he wrote, “a vast collection of possessions ends up possessing its owner. The asset I most value…is interesting, diverse, and long-standing friends.” Of his decision to donate 99% of his wealth to charity, Buffett said that he “couldn’t be happier.” 

Luckily for us, we don’t need to give away a fortune to reap the emotional rewards of prosocial spending…

…keep reading the full & original article HERE