Buzz
While money alone can’t buy happiness, the way we choose to spend it has a direct impact on our satisfaction. A recent study revealed that we tend to feel more content with our purchases when there’s still money left in our accounts.
In a paper published in the Journal of Consumer Research, researchers conducted six experiments to explore the connection between spending and happiness. One study involved participants buying three films they had just watched, with some having enough money to cover just the films, and others having a bit more.
As participants bought the second film, their satisfaction levels began to align more closely. However, by the time they were purchasing the third film, the difference was more pronounced. Those who had extra funds remaining were more satisfied.
Essentially, the closer you get to depleting your budget, the more your satisfaction declines.
How can this advice improve your own spending habits? If you're saving for a purchase, try to save a little more than the cost of the item. This way, your account or fund won't be emptied—aim to have some money left over, even if it means waiting a bit longer.
This isn't just a smart financial practice in general; research shows it can also lead to greater happiness with your purchase. For further details, be sure to read the full paper.
The Bottom Dollar Effect: The Impact of Spending to Zero on the Pain of Payment and
Photo by Tax Credits.
