• Skip to main content
  • Skip to footer

Stay Wealthy

  • Podcast
  • Blog
  • About
    • About Taylor
    • Awards & Media
  • Work With Me
  • Free Assessment

Get your
Free
Assessment

The Secret to Using Money to Buy Happiness

gravatarBy: Taylor R. Schulte, CFP® July 3rd, 2017
money buy happiness

July 3, 2017

We’ve all heard some version of the joke that goes, “no, money can’t buy happiness… but it can buy ____, and that’s kind of the same thing.”

It’s amusing because it hits on an important truth that can help set you up for financial success — if you fully understand it and use it to your advantage.

Money Doesn’t Automatically Equal Happiness

You actually can buy happiness. Most people just go about this the wrong way.

People who can’t use money to buy happiness are spending it on things because they think they should. They’re spending on status symbols to impress other people. Or they’re trying to buy a bunch of stuff to distract them from deep problems instead of facing and resolving those issues.

Buying things to please or wow other people puts you on the fast track to misery. And spending all your money on stuff can leave you feeling hollow and empty.

There are a few reasons for this:

  • Humans suffer from something called “hedonic adaptation.” Because we’re so adaptable, the pleasure we get from buying new stuff quickly fades as we get used to it. We have to continuously seek newer, bigger, more exciting buys to keep that sense of pleasure. We get stuck on a hedonistic treadmill and never feel satisfied for long.
  • But sometimes we don’t even feel happy with our purchase in the first place. We tend to feel buyer’s remorse more often than not, especially because we’re prone to comparing our new things to someone else’s — and feeling like our stuff came up short somehow.
  • Acquiring stuff may be a coping mechanism to help us deal with stress and other factors that lead to overall unhappiness.

From this perspective, the old adage is right. Money can’t buy happiness.

That’s a good money lesson to keep in mind. But there’s some nuance here. No, money isn’t a direct path to happiness. It is a tool. And just like any tool, there’s a right and a wrong way to use it.

If you want to leverage your finances to bring you happiness, start by understanding what you value.

Feel Like You Can Afford Anything: Align Spending with Values

Remember that joke at the top of this article, where you could insert whatever appealed to you in the blank? That’s the key to using money to “buy” happiness: knowing what’s important to you.

By “important to you,” that doesn’t mean a new smartphone or a fancy watch. We’re talking about your core values. These are things like:

  • Family
  • Community
  • Respect
  • Determination
  • Service
  • Wisdom

When you spend on what you value and cut out what you don’t, you might be surprised how much money that leaves in your monthly cash flow. You can then redirect that money to more of what you value — or save more for major financial goals.

Speaking of financial goals, make sure those align with your values too. You don’t want to work relentlessly toward something like buying a house just because you feel like you should (or because you feel pressured by someone else’s expectations).

How You Use Money Should Reflect What’s Important to You

Once you define what your values are, take a look at your spending. Does your current budget reflect those values back at you? Or are you using your money to buy stuff that’s not deeply important to you?

If it’s the latter, there’s room for improvement — and for allowing your money to bring more happiness. For example, maybe you realized you’re spending over $1,000 per month on meals out.

(And if that sounds outlandish, it’s easier to do than you think. A $10 lunch and a $20 dinner out every single day will get you there. So will fewer but more expensive meals at nicer restaurants.)

But what if your values include Family, Growth, and Health? Your spending doesn’t align with these at all right now. You could spend more time with your family, learn a new skill, and improve your health by taking on the challenge of cooking every meal at home for a month.

Once you define your values and understand what’s deeply important to you, you might realize that very little on that list deals with material goods or physical stuff.

Your list is probably centered around people and experiences — and spending to create memories that last with people you love is one of the most powerful ways we can use money to buy happiness.

Taylor R. Schulte, CFP®

Hey there! I’m the founder of Define Financial, a commission-free retirement planning firm ranked #2 in the U.S. by Investopedia. We specialize in helping people over age 50 reduce their tax bill, invest smarter, and make work optional in retirement. I’m also the host of the Stay Wealthy Retirement Show, a Forbes Top 10 podcast. When I’m not helping retirement savers reduce their taxes, you can find me traveling with my family, searching for the next best carne asada burrito, or trying to master Adam Scott’s golf swing.

Share this post:
  • Facebook
  • Pinterest
  • Twitter
  • Linkedin

About Taylor R. Schulte, CFP®

Hey there! I'm the founder of Define Financial, a commission-free retirement planning firm ranked #2 in the U.S. by Investopedia. We specialize in helping people over age 50 reduce their tax bill, invest smarter, and make work optional in retirement. I'm also the host of the Stay Wealthy Retirement Show, a Forbes Top 10 podcast. When I’m not helping retirement savers reduce their taxes, you can find me traveling with my family, searching for the next best carne asada burrito, or trying to master Adam Scott’s golf swing.

Connect

Stay up to date with retirement planning tips & strategies.

How New Tax rules Could Permanently Lower
the Taxes You Pay [Free PDF Guide]

Recent Articles

Medicare IRMAA brackets and ten ways to avoid or reduce IRMAA.
2023 IRMAA Brackets: What Are They + How to Avoid IRMAA
By: Taylor Schulte March 1, 2023

Today I’m sharing everything you need to know about the 2022 and 2023 IRMAA Brackets. I’m also sharing: What IRMAA is How IRMAA is calculated The 10 best ways to avoid IRMAA If you want...
Continue Reading

Donor Advised Funds
Donor-Advised Funds: How to Get a Bigger Tax Deduction in 2022
By: Taylor Schulte January 5, 2022

Today I’m sharing everything you need to know about donor-advised funds. In fact, these simple giving accounts can help you lower your tax bill in 2022. They can also help you give more money to...
Continue Reading

san diego real estate
San Diego Real Estate: Should You Buy or Rent? Here’s How to Decide
By: Taylor Schulte January 1, 2022

San Diego real estate continues to skyrocket. If we buy a home, it feels like we might be getting in at the top of the market. If we rent, we are just paying someone else’s...
Continue Reading

Footer Logo

© 2021 · Stay Wealthy · Disclaimer · Privacy Policy · Accessibility Feedback

This website uses cookies to improve your experience. ACCEPT REJECT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT