When Buying Happiness, Pay Up Front

Last week we learned that one of the best ways to buy happiness is to spend money on experiences rather than things. Today, I want to explore a trick to squeeze a little extra happiness out of those same purchases.

The trick is paying in advance for as much of your experience as you can.

This helps increase the happiness you get from your experience in a few ways. First, it separates the event itself from the pain of paying. Next, the anticipation and delayed gratification will make you happier. Finally, in looking forward to your experience, the uncertainty of what is to come will bring you some extra happiness, as well. Continue reading “When Buying Happiness, Pay Up Front”

How to Buy Happiness

I apologize in advance for the inherent humblebraginess of vacation pictures. I did warn you, though.

I am generally a pretty frugal person. Three of my last four posts have been about saving money. I’ve written about cognitive biases that get in the way of saving money. I’ve written about the best way to hit savings goals.

And yet, I just spent a whole bunch of money on a three-week vacation to South Africa and Spain. This came thirteen months after a trip to Peru. Which itself came eight months after a honeymoon in the Bahamas (which, to be fair, was paid for with hotel points).

The sun setting over the Atlantic from Cape Town

This may seem out of character or incongruent with my savings focus. But I don’t save money for the sake of saving money. I don’t intend to be the richest man in the cemetery. And while I would love to reach financial independence, I am not aiming to get there as soon as possible by any means necessary. Instead, I want to live my best (and happiest) life with as little waste as possible. Continue reading “How to Buy Happiness”

Actually Saving Money

Recently I’ve spent some time here discussing the most optimal ways to save money. First, focus on the big wins and then take a look at your recurring expenses.

This is a great start, but it doesn’t mean anything if you don’t actually put that money away. Instead, our natural tendency towards mental accounting may be eating into, or completely negating, our savings.

Continue reading “Actually Saving Money”

Saving Money Better – Recurring Expenses

As a preliminary note: Thank you all for the well-wishes in response to my last post! I had a lovely month out of the country (although everyone everywhere wanted to talk about Trump and the American election). If you’d like to see some pictures from Johannesburg, Kruger National Park, Durban, Cape Town, and Barcelona, feel free to check out my wife’s Instagram page. I also have some articles on vacation and travel coming up, in which I will include some photos from the trip.

And now back to your regularly scheduled programming…

I recently wrote about how to save money better. I argued that you should focus first on housing, transportation, food, and taxes. My explanation was that these are the areas where we spend the largest amounts of money, and so they are also the areas where we could save the largest amounts of money. Continue reading “Saving Money Better – Recurring Expenses”