In episode 160 I discussed the first 2 ideas on how to spend your money wisely. In this episode I’ll talk about 4 more great ideas on how to get the most from your money and 2 things you have to be careful about. Get the latest findings from positive psychology researchers like Elizabeth Dunn, Tim Wilson and Dan Gilbert on this episode of The Psych Files.
…as long as money is limited by its failure to grow on trees, we may be better off devoting our finite financial resources to purchasing frequent doses of lovely things rather than infrequent doses of lovelier things. – Dunn, E. W., Gilbert D. T., & Wilson T. D. (2011). If money doesn’t make you happy then you probably aren’t spending it right. Journal of Consumer Psychology. 21(2), 115-125.
Six Guidelines for Spending Your Money Wisely
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- Buy Many Small Pleasures – Instead of Few Big Ones
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- Don’t Buy Extended Warrantees and Such
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- Don’t Get Now and Pay Later. Instead Pay Now and Get Later: don’t deprive yourself of the joys of anticipation. Anticipation of an upcoming new thing in your life feels great.
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- Beware of Comparison Shopping: this activity could make you forget what is most important to you.
- Pay Attention to What Others Buy and/or What Others Think Will Make You Happy: a lot of times we don’t know ourselves as well as others.
References
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- Dunn, E. W., Gilbert D. T., & Wilson T. D. (2011).  If money doesn’t make you happy then you probably aren’t spending it right. Journal of Consumer Psychology. 21(2), 115-125.
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- Van Boven, L., & Gilovich, T. (2003). To do or to have: That is the question. Journal of Personality and Social Psychology, 85, 1193-1202.
Dan Gilbert: Why are we happy? Why aren’t we happy?
www.ted.com Dan Gilbert, author of Stumbling on Happiness, challenges the idea that well be miserable if we dont get what we want. Our “psychological immune system” lets us feel truly happy even when things dont go as planned.TEDTalks is a daily vide…
Michael
October 11, 2011Pete Best! That’s that name. Thanks Davva.
Derek: you’re certainly not alone with the scenario you describe. I’ve had that experience too. I’m not sure what that’s called, but I think psychologists have a name for it. If I can come up with it I’ll put it here. Hmm…..
Derek
October 11, 2011Something that came to mind when you were discussing comparing things when considering buying them is how easily you can commit yourself to buying something. You were discussing things like cars, but I find something related when buying small things.
For example, I’d like to own the film “The Dish” (about the Parkes radio telescope in Australia and how it helped film the first moon landing – very funny, very Australian story), but really I don’t need it, and I don’t know when I’ll watch it, and really I should save the money, even if it is only $20 or whatever. To indulge myself, I go looking in the normal spots – Amazon.com, amazon.co.uk, fishpond.com.au, booko.com.au, ebay, etc – and before I know it, I’m madly comparing prices finding exactly where I can get it from for the least money and I find I’ve just about ordered it before I think “Hold on, do I really need this?” It’s like by doing all that price comparison I’ve _already_ committed myself to buying it.
Bizarre, perhaps, but I thought it was relevant – am I the only one who suffers this?
Great practical episode, Michael!
Davva
October 11, 2011Pete Best was the Beatles drummer replaced by Ringo Starr.
Great podcast series – keep going!