Monday, July 26, 2010
Well Being: Post #4
Financial Wellbeing Comedian Woody Allen said it best: “Money is important if only for financial reasons!” The authors found out essentially the same thing, financially secure people were happier than those less financially secure. BUT, spending money on themselves did NOT boost wellbeing. Spending money on other people was as important as how much people made. Further, people in bad moods spend more money, display worse purchasing decision making, and DON’T feel better, in fact sometimes worse. So “retail therapy” does not work. On the other hand, people who spend money on others and those who “buy experiences” like family vacations and gatherings with friends can enjoy the events before, during and after them. So, building memories, not self accumulation of stuff, does the trick. The authors offer several good ideas for boosting Financial Wellbeing. Here’s one: Establish default systems (automated payments and savings) that lessen daily worry about money.