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Expert in positive psychology reveals the 8 times 'money can absolutely buy happiness'

Science says money can in fact buy happiness. But there's a catch.

Because the solution isn't always forgoing the avocado toast.

The phrase “Money can’t buy you happiness” started as a way to remind folks that there’s more to life than meaningless material possessions. But as we all get a little older and wiser, we realize that money absolutely does contribute to a more comfortable and secure life, and while those things aren’t the sole determinant of happiness, they are undeniably huge factors.

Furthermore, experiences, relationships, personal fulfillment, and a sense of purpose—all major indicators of true happiness—can be enhanced by having financial resources.

In other words, as happiness expert Jessica Weiss wrote in herCNBC piece, “Money can absolutely buy happiness.” The problem is “we’ve just been spending it all wrong.”

In the article, Weiss cited the rather well known 2010 study which found that day-to-day happiness rose as annual income increased, up to $75,000 (though perhaps that number has increased to match inflation). Point being: up to a certain extent, larger incomes do, in fact, increase happiness.

And yet, it can be hard to feel like we are never ever making enough to truly feel happy. Or, we feel guilty about the seemingly frivolous purchases we do make. This is where Weiss’ list comes in. According to her, investing in these eight categories below “actually trigger that lasting and sustainable kind of happiness,” and “benefit your well-being in the long run.”

1. Live Music

money, happiness, how to be happier, 10% happier, money advice, how to invest, money and happiness, cnbcPeople enjoying a concert.Photo credit: Canva

No one who's been to a concert would argue this one. But as Weiss noted, it’s not just about watching performers take the stage. It’s equally about the physical act of singing with one another, which triggers a mood boosting, stress relieving phenomenon known as “collective effervescence.” Using this logic, a cheap night of karaoke or joining a choir group could also do the trick if you can’t necessarily justify concert tickets.

2. Novel Experiences

money, happiness, how to be happier, 10% happier, money advice, how to invest, money and happiness, cnbcA woman sipping coffee. Photo credit: Canva

Time and time again, experts agree that money is well spent on activities that create positive memories. This could range from a camping trip to, as Weiss writes, simply “painting your nails an unexpected color.”

In her book The Artist’s Way, Julia Cameron similarly writes about “artist dates,” which are carved out moments each week dedicated to nourishing your inner creative being. They can be as lavish or as bare bones as you want. However, unlike Cameron, who urges folks to participate in artist dates alone, Weiss notes that engaging in novel experiences with friends or loved ones “supercharges the happiness effect.”

3. Purchases That Literally Buy You Back Some Time

money, happiness, how to be happier, 10% happier, money advice, how to invest, money and happiness, cnbcThree happy cleaners. Photo credit: Canva

Studies show that people with higher incomes experience more “time stress” than others, because they have a limited amount of time to achieve not only their work, but mundane chores and keep up with some semblance of a social life. But some purchases literally buy you some time back, whether that’s an Instant Pot for faster meals or a monthly house cleaning to finally dust off the shelves.

But it’s not just time-saving products which give you back some sanity. From a really good mattress to a well fitting bra (iykyk), certain splurges add so much ease and comfort to our lives that they are well worth the money.

4. Relationship-Boosters

money, happiness, how to be happier, 10% happier, money advice, how to invest, money and happiness, cnbcFriends enjoying a meal together. Photo credit: Canva

We are, after all, social creatures. No amount of capitalism is going to change that. In fact, as Weiss noted, our close relationships trump genetics, wealth, and even fame in terms of predicting our overall satisfaction.

And the great thing is, a simple potluck movie night or family hike can do the trick.

5. Acts of Generosity

money, happiness, how to be happier, 10% happier, money advice, how to invest, money and happiness, cnbcHappy volunteers at a charity event. Photo credit: Canva

A 2010 study reported by Utah State University found that people experienced happier moods when they gave more money away (as long as they had the choice of how much to give). Two years prior, a 2008 study in the journal Science found that those who engaged in “higher prosocial spending,” i.e., spending on others versus themselves, reported “significantly greater happiness.”

You can trust the science, or you can test the theory yourself. Donate to a cause that you’re passionate about, or treat your friend to dinner (a relationship booster and an act of generosity…win-win!), and see how you feel. Odds are you’ll feel pretty good.

6. Small Pleasures

Happiness doesn’t always need to come from big-ticket items. Rather than a lavish two week vacation, opt for a weekend getaway. Or, for the love of god, go ahead and buy a fancy latte without thinking this is the reason you can’t afford a home. As Weiss writes, these simple joys write the brain for "cumulative joy.” Plus, they’re certainly less stressful than expensive splurges.

7. Character building challenges

money, happiness, how to be happier, 10% happier, money advice, how to invest, money and happiness, cnbcA woman participating in a marathon.Photo credit: Canva

Novel experiences are great, but Weiss argues that physically or mentally challenging experiences (think cold plunges, hikes, competing in a marathon, learning new skills) offer a delayed, yet ever-so-satisfying “earned pleasure” of having overcome an obstacle, which increases confidence.

8. Big Plans

money, happiness, how to be happier, 10% happier, money advice, how to invest, money and happiness, cnbcA man making vacation plans. Photo credit: Canva

The great thing about committing to booking those vacation tickets is the joy of anticipating the upcoming reward, Weiss notes. “ Your vacation starts delivering happiness the moment you book it, months before you pack your bags,” she writes. This is a great reminder for those of us that procrastinate on actually committing to the trip due to sticker shock.

Bottom line, retail therapy tends to get a bad rap—and not without good reason, as we do live in a society that normalizes constant, mindless spending. But often, the material and experiential value of a purchase harmoniously meet in the middle, and thus impact our happiness in positive ways. Think of a fun clothing item you bought on vacation, that you then wear out to a friend’s dinner and share stories of procuring it, versus something trendy you bought and never wore.

Of course, many companies have long caught onto this idea and sell the promise of an experience with the purchase of their product. Hence why discernment is crucial. But if you’ve been chastising yourself over an event ticket here or a fancy new gadget there, remember that maybe you really are investing in yourself…which is always a worthy investment.

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One woman worked multiple jobs and downsized her lifestyle to live out her biggest dream.

You've seen stories about people taking off and traveling the world. Here's how one woman saved up and did it.

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In high school, Brooke Schoenman took a trip to Italy with her Latin class. She returned home determined to see more of the world.

“I remember being fascinated with how people like me were living in other parts of the world, speaking different languages,” she wrote in an email.

And that fascination would stay with her, leading her to take the biggest adventure of her life.


At 23, while working full-time as a help desk agent, Brooke made up her mind — she would give herself two years to save enough money to travel the world.

She wasn’t just working toward saving for a vacation or two. No, she wanted to spend a minimum of one full year living abroad, fully immersed in other cultures.

Image via iStock.

So she made a plan: She would cut down on unnecessary expenses. She’d sign up for overtime at work. She’d go out less. She’d take part-time jobs. She’d downsize her lifestyle in every way possible — all with the goal of saving up $30,000 in two years to fund her adventure.

It wouldn’t be easy saving that much money, but Brooke was determined. And she was fortunate enough to be able to devote as much of her time, money, and energy as she could muster to her ambitious plan.

"There was a time that I would work at my day job from 7:30 am to 4 pm," she wrote on Making Sense of Cents, "and then head off to do some evening waitressing ... from 5 to 10 pm."

It's the kind of schedule many people who need to bring in extra cash to cover their financial goals and needs are familiar with.  

Image via iStock.

And it was worth it for her.

“I think having a bigger-than-life goal in mind helped,” Brooke explains. “I was saving for a life-changing experience — something so far from what was normal to me and anyone I knew at the time. It was exciting!”

Along the way, she celebrated even the smallest victories.

“If I took a change jar to the bank and it was twice as much as I thought it would be, I would make a point to celebrate," Brooke writes, "and sometimes I would allow a little splurge.”

The occasional treat was just as important as celebrating the small wins.

Image via iStock.

"I tried to cut out everything in the beginning, but soon learned that the mental toll of less fun and less freedom to eat out or go to the movies was too much,” Brooke writes. “You have to budget in some fun money, even when you're going for a big huge goal.”

By doing this, she didn’t get overwhelmed by the magnitude of her goal. She remained motivated. (Knowing that you're not starving yourself of all life's pleasures is important for any savings goal. It means you can actually stick to your plan instead of burning out too early.)

A year and a half in, Brooke had saved $23,000. She decided that was enough.

Brooke describes herself as “someone who hates to wait." So, she explains, “When I started to get close to my fall-back goal of $25,000 (about $23,000 after plane tickets and gear), I decided that starting my life of travel half a year earlier was an acceptable option."

Image via iStock.

So, she bought her plane tickets and set off to travel the world.

Traveling was more fulfilling than Brooke could have imagined.

From archeological digs in Menorca, Spain, to watching the jungle wake up at sunrise in Tikal, Guatemala, she pushed herself far beyond her comfort zone and experienced things that many only dream of. She even decided to make Sydney, Australia, her new home.

She's continued to lean on the tips and tricks she learned during that year and a half to fund other (shorter) adventures, like a three-and-a-half-month trip to Turkey, China, Mongolia, Russia, and Kyrgyzstan.

Image via iStock.

Today, Brooke's budgeting isn't nearly as extreme as it was for her initial goal, but she remains money conscious.  

And she's helping others save too by sharing advice and travel stories on her website: HerPackingList.com. Though her site's geared toward travelers, her tips are relevant for anyone saving toward a goal. (This calculator is also a big help in figuring out how to reach your savings goals.)

Brooke truly believes that saving up for a big goal is achievable. Though, she adds, saving doesn't come in a one-size-fits-all package.

“Everyone will have different circumstances surrounding their saving process. Maybe the cost of living where they are is higher or maybe they can't forego hanging with friends at bars and restaurants,” Brooke writes. “Once you can pinpoint the real reason the saving isn't working, you can test out alternative strategies and budgets until one works.”

Image via iStock.

Saving is hard. There's no doubt about it.

And $23,000 is a lot of money. For someone doing their best to just get by, such a large amount in such a short time frame may not always be possible.

But Brooke made the sacrifices she needed to save for the future she envisioned. And her experience shows that with perseverance, goals that seem like dreams can be attainable — it just takes patience, planning, and time.

So while your savings goal may not be a trip around the world, securing your financial future is just as exciting. Because while we never know what the future holds, preparing financially helps open some doors. Help make your dreams a reality by setting your financial goals today.

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5 ways financial literacy could make your relationship better than ever.

Aside from politics and religion, what is more polarizing than money?

A 2013 survey found that money is the #1 cause of stress in a relationship.

More so than in-laws or whose turn it is to do the dishes. In fact, arguing about money is easily the top predictor of divorce. Yipes.

But, a deeper understanding of how money works can affect our lives in many surprising ways.


Ways that go beyond just making more of it and can change our relationships for the better.

Jeffrey Dew, Ph.D., a professor at Utah State University, told Upworthy, "Financial literacy is important because it can help inform couples about how to handle their money on a day-to-day basis as well as inform their long-term financial goals."

Well said, Professor Dew. Now, here are five things everyone needs to know about money.

1. Proper planning will lessen your financial stress immensely.

Ahhhh yes! The sweet, soothing touch of financial literacy.

No surprise here! No couple wants to go through the doldrums of financial stress. BUT if you’re smart about your expenses and budget accordingly, there’s peace of mind and, well, peace in general.

One way to start is by signing up for a financial app to help you budget. There are a lot of options out there that let you integrate all your accounts, provide forecasts, and fast-track the stress-relieving process to get you looking like that baby owl in no time. You and your partner can review your accounts, set savings goals, and watch your progress together!

2. Talking about money actually brings you closer together.

A romantic getaway. A candlelit dinner. Fixing your finances.

Yes, all of these can strengthen your relationship. Taking the time to assess your financial situation together not only gives you a clearer idea of where you stand, it reinforces a crucial relationship dynamic — teamwork! By figuring out each of your strengths and weaknesses when it comes to managing money, you can build a solid foundation for working together that you'll use again and again throughout your relationship.

Let's never argue about money again! GIF from "Saturday Night Live."

Teams don’t go splurging on stuff in secret. Teams look out for the well-being of one another and do what’s best for the whole.

3. Understanding your finances will help you predict the future.

Oooohh! I see a comprehensive financial plan in your future.

Well, kind of. For couples, a financial plan is probably the closest thing to a real crystal ball. I mean, it can help both of you figure out exactly where you want to be in five, 10, 20, or 50 years if you want to!

The perfect house? The perfect car? All of it (plus more) can be yours for the incredibly low price of putting in the work and creating a solid plan that makes sense and keeps you on the path toward your goals.

4. Creating a budget will actually save you more time in the long run.

Time is money, money is time, and so on and so on. GIF via Vortex Anomaly.

Breaking down your finances will take time. It’s just a question of how much.

If you put in the work early, you save yourself from all the unnecessary hours rummaging through paperwork and dealing with collectors later on. That’s time you can spend going out, watching "Game of Thrones," or even actually spending your money on experiences and creating memories together.

Which leads me to my last point...

5. You can still treat yo selves, you know.

Aziz knows what's up — style-wise and money-wise.

OK, so this is pretty money-related, but it’s not about having more of it. It’s about understanding that you should enjoy the fruits of your labor.

The trick is finding the middle ground so you can still splurge, just smarter. When you’re efficient with your funds, you can find ways to buy the things you want and maximize every single cent.

Now go call your significant other! Tell them you love them, and tell them you have a plan to ease all your money-related stress.

We did it! We did it! GIF from "Seinfeld."

(Just don’t do it in an "I won the lottery!" kind of way.)

It's not uncommon to hear about the financial struggles of former NFL players who, in spite of multimillion-dollar deals, are now living paycheck to paycheck.

It's easy to judge them, but that's ignoring a very real truth: Financial literacy is a privilege often afforded to the already wealthy, not the newly wealthy.

As Justin Tuck, retired Giants defensive end, told Reuters, "Look at the average NFL roster, and most players come from low-income families. They go from being 18-year-old kids with nothing to being 21-year-olds with millions of dollars. ... They get all this money all of a sudden, and they just don't know how to handle it."


Image via Heath Brandon/Flickr.

That kind of wealth isn't easy to manage, and when it happens in such a short period of time, at such a pivotal moment in the player's lives, it's too easy to lose control and wind up in dire financial straights.

That's part of the inspiration behind Tuck's R.U.S.H. for Literacy.

The solution to being poor isn't just to acquire more money; it's also to know how to manage and grow your money. So in 2008, Justin and his wife, Lauran, founded Tuck's R.U.S.H. for Literacy, an organization dedicated to addressing a number of issues, including financial literacy for low-income families.

R.U.S.H. stands for read, understand, succeed, and hope, and Justin and Lauran set out together to encourage those ideals by donating lots and lots of books — over 86,000 of them, in fact — to children who needed them. They wanted to help decrease summer learning loss, when kids lose a lot of the momentum gained throughout the school year.

Image via Ginny/Flickr.

But they noticed that encouraging regular literacy was only part of the equation when it came to keeping the kids motivated and invested in their academics. Financial literacy is also a huge factor. So they set out to equip students and their families with the skills, tools, and hope needed to thrive in school, college, and beyond.

Financial literacy is directly related to which kids pursue undergraduate degrees.

As explained in a 2010 Center for Social Development research brief by William Elliott III and Sandra Beverly, financial planning has a huge effect on college attendance:

"We assume that savings and wealth may have two effects on college attendance. The first effect is direct and mainly financial ... . The second effect is indirect and mainly attitudinal: If youth grow up knowing they have money to help pay for current and future schooling, they may have higher educational expectations."

Image via Tax Credits/Flickr.

The people behind R.U.S.H. noticed this link between having a college savings account and going to college. Lauran told Upworthy that in spite of efforts to even the playing field, "there were still barriers to college access. A lot of the kids — especially those that were at risk — were responding saying they still didn't think they were going to go to college. They said it's too expensive."

Seeing this problem, R.U.S.H. stepped in with a long-term solution.

Lauran and Justin partnered with a number of organizations and began seeding college savings accounts and raising matching funds. Megan Holston-Alexander, R.U.S.H.'s program director, shared that the initial "seed was $150,000, given at $100 per student. As of June 1, 2015, the accounts have risen another $40,794." And that amount will only continue to grow.

Lauran explained that the financial contributions have been supported by efforts to educate the families so that "parents and students understand why we're saving for college and so that parents understand that their money is going to be matched."

Image via Nazareth College/Flickr.

Justin emphasized to families that "if it's important to you, then you have to be prepared to sacrifice."

R.U.S.H. isn't making college free; it's planting the seed of hope and arming families with the information necessary to prepare for their children's futures.

As Lauran stated, "what keeps us going is the 'H' in the acronym, the 'Hope' piece of it. We want to provide for so many kids and families hope, where the opportunity gaps do exist. It's the hope that motivates us."

By giving parents the skills necessary to maintain financial health and enabling them to set up college-savings accounts for their kids, R.U.S.H. helps these communities to build a legacy of achievement. They're making it possible for the kids and their families to see and work toward goals that may have felt impossible. R.U.S.H. is making it possible to dream. But more importantly, it's making it possible to achieve.