The Correlation Between Money and Happiness
- Money can buy happiness, but less than most people think
- The weak positive correlation between money and happiness occurs because people don't understand what causes long-term happiness, and so they don't spend their money correctly
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🎓 Affective forecasting occurs when the hedonic consequences of future events
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- Errors in Affective Forecasting
Principles of Maximizing Happiness
- Buy experiences instead of things
- Help others instead of yourself
- Buy many small pleasures instead of few big ones
- Buy less insurance
- Pay now and consume later
- Think about what you're not thinking about
- Beware of comparison shopping
- Follow the herd instead of your head