One For The Money

• Life, liberty, and the pursuit of happiness [01:05]
• Money does not guarantee happiness [02:06]
• Spending money on others [04:03]
• Opportunities to anticipate [07:47]

America’s purpose aligns perfectly with human purpose: life, liberty, and the pursuit of happiness. Pursuing happiness has been a recurring theme in this podcast, and I regularly encourage clients and listeners to seek the things that ultimately lead to happiness. Those things are only sometimes directly influenced by money. Happiness is derived through positive emotion, engagement, relationships, meaning, and accomplishment. 

Money neither buys nor guarantees happiness. I have met both wealthy and poor people who are equally unhappy. When I visited India years ago, I walked past a squatters’ camp on my way to see a temple. The makeshift shelters were built of worn blue tarps and cardboard boxes. Despite their difficult living conditions, these people had joyful countenances that still impact me today.

While money can’t buy or guarantee one’s happiness, there are instances where money via spending CAN make you happier. Spending money on others rather than ourselves has proven to lead to more happiness for the spender. Spending money to buy ourselves more time might seem simple, but it goes a long way. Sometimes, I spend a little money to have more time with my family. That extra time is priceless. 

With more time, you can do other things like exercise, volunteer work, or other activities linked to increased happiness. Connecting with friends, attending an event, and learning new things are all great ways to spend your time positively. Important to note is the critical issue of how people consume this extra time. Spending all your free time binge-watching shows, playing games, or scrolling through social media is quite different from doing something meaningful, engaging, or growth-promoting. 

Research suggests that happiness is more often derived from experiences rather than material possessions. However, it’s important to remember that material things can also bring us joy if we use them to create experiences like going on a picnic or visiting a national park or museum. Simple, low-cost activities can provide small but meaningful boosts to happiness in the short term that accumulate one step at a time to significantly impact happiness in the long term.

Securities and Advisory services offered through LPL Financial. A registered investment advisor. Member FINRA & SIPC.

• When it Comes to Early Retirement - Start with Why, Ep #1
• Too Much Money & Too Few Memories, Ep #24
• Michael Kitces
• 6 Ways Money Really Can Buy Happiness For Your Financial Planning Clients