Money doesnt buy happiness, but what you spend it on can affect your satisfaction.
Beyond that,howyou pay has an impact on your happiness, too.
But its not just what we buy that affects our happiness, its also how we buy it.
To combat overspending, many personal finance experts recommend paying for stuff with cash.
The consumption is more direct with cash; you feel it more.
And it works, according toresearch from MIT.
Other researcherscall it coupling: the degree to which paying is linked to consumption.
Credit cards weaken coupling; cash tightens it.
But psychologist Hal E. Hershfield brings up an interesting point about this phenomenon.
Doing so decouples the pain of paying from the consumption of the experience.
Going back to the hotel example, this would mean paying online weeks in advance.
Youre decoupled from the act of paying, and you might enjoy your trip more.
Overall, its about balancing the pain of paying with the danger of overspending.
If your goal is to spend less, you might need to tighten your coupling.
Either way, it should go without saying that you want to confirm you spend responsibly.
To check out the rest of the post, head to the link below.
The Way We Spend Impacts How We Spend| Psychology Today
Photo bySharon & Nikki McCutcheon.
