The Science of Smarter Spending – Elizabeth Dunn & Michael Norton

Do you believe that money could be happy or miserable? The author is implying that money bringing happiness is termed as Happy Money. This is basic finance book just to remind us that we should follow the basic principles of Money to be happy in life.

The words of wisdom from the book are:

  • We are happy with things, until we find out there are better things available.
  • Abundance, it turns out, is the enemy of appreciation.
  • Novelty attracts the spotlight of attention, focusing our minds and exciting our emotions. But once we get used to something—even something as nice as a midnight blue Z4—the spotlight moves on.
  • According to Silverman: “That’s why mantras need to be repeated—they’re fucking hard to remember.”
  • If abundance is the enemy of appreciation, scarcity may be our best ally.
  • The world’s most revered sages—the Dalai Lama—advises us to appreciate what we do have rather than focusing on what we don’t.But research suggests that focusing on what we haven’t done may trigger us to appreciate what we’re doing now.
  • Because our cheerometers lack the objectivity of mercury, the way we perceive an experience depends partly on how we perceive ourselves. And changing our sense of identity, even temporarily, can make it easier to appreciate the simple pleasure of a hotel pool.
  • Uncertainty itself is neither sweet nor sour; rather, it intensifies the flavor that’s already there.
  • Because uncertainty can magnify both positive and negative emotions, delaying consumption is a safer strategy for purchases that inspire purely positive feelings—purchases that are “delightful” rather than, say, “complicated.”
  • Below, we describe three strategies designed to boost the impact of investing in others: Make It a Choice, Make a Connection, and Make an Impact.
  • “Happiness Runs in a Circular Motion.”
  • Savings can buffer us from the unpleasant shocks of life on earth, providing a cushion that ensures we can bounce back and achieve the levels of happiness entwined in our DNA.

The basic principles of Money are:
1. Buy Experiences
2. Make It a Treat
3. Buy Time
4. Pay Now, Consume Later and
5. Invest in Others.