Spend better

Three principles for spending your money to make you happier from the excellent titled paper "If money doesn’t make you happy then you probably aren’t spending it right."

Buy experiences instead of things.
Help others instead of yourself.
Buy many small pleasures instead of a few big ones.

If I feel like I have money and I'm not feeling so happy, the tips from this paper come to mind, and I find myself reflecting on what I could be doing differently with my money.

More generally, I believe there is a correlation between money and happiness, but only up to a certain level, at which point most of our needs are met, and more money doesn't tend to make people that much happier.

Elizabeth W. Dunn, Daniel T. Gilbert, Timothy D. Wilson, If money doesn't make you happy, then you probably aren't spending it right , Journal of Consumer Psychology, Volume 21, Issue 2, 2011, Pages 115-125, ISSN 1057-7408, https://doi.org/10.1016/j.jcps.2011.02.002

Published 23 Aug 2013

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Optimism bias

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Optimism bias is a tendency to believe that things will turn out well in spite of past evidence or circumstances. It can be extremely helpful. It allows us to attempt things that many may deem impossible. It probably helps drive entrepreneurs even when everyone is doubting them. Optimists are often healthier and happier. But it can also undermine us. We might overestimate our chances of success because of what we want to happen rather than what's likely to happen. We may feel pressure from others to give a rosier outlook — like when you might underestimate a timeline when speaking with your boss. We might want others to succeed, or they may be paying us money and be hoping for good news. We probably think we'll get more done next week. We probably think we'll be more disciplined than we will be. We might think that this time it'll be different, or that everyone can't be wrong. Or we may be just discounting evidence without realising it. May your optimism be well-founded. Related: Hofstadter's Law, survivorship bias, Kitty Hawk moment Optimism bias print with a little colour…Optimism bias is a tendency to believe that things will turn out well in spite of past evidence or circumstances. It can be extremely helpful. It allows us to attempt things that many may deem impossible. It probably helps drive entrepreneurs even when everyone is doubting them. Optimists are often healthier and happier. But it can also undermine us. We might overestimate our chances of success because of what we want to happen rather than what's likely to happen. We may feel pressure from others to give a rosier outlook — like when you might underestimate a timeline when speaking with your boss. We might want others to succeed, or they may be paying us money and be hoping for good news. We probably think we'll get more done next week. We probably think we'll be more disciplined than we will be. We might think that this time it'll be different, or that everyone can't be wrong. Or we may be just discounting evidence without realising it. May your optimism be well-founded. Related: Hofstadter's Law, survivorship bias, Kitty Hawk moment Optimism bias print with a little colour

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