Hey Lykkers! Have you ever wondered whether money can buy happiness?

While it's common to hear that money doesn't guarantee happiness, new research suggests it may depend on how we spend it.

We all know the joy of a shopping spree or splurging on something special, but what if the key to happiness isn't just about having money—it's about how we choose to spend it? In a recent study conducted by Dr.

Säde Stenlund, a postdoctoral fellow at Harvard T.H. Chan School of Public Health, some interesting findings challenge conventional thinking on this topic. Let's take a closer look at how spending decisions can impact our happiness and wellbeing.

The Study: How Money and Happiness Are Connected

In the study, Dr. Stenlund, along with colleagues from the University of British Columbia (UBC), partnered with TED, a nonprofit organization, to recruit 300 participants from diverse countries such as Indonesia, Kenya, Brazil, the United States, the United Kingdom, Canada, and Australia.

Among these, 200 participants received a generous windfall of $10,000, which was a complete surprise to them! They were asked to spend it within three months and fill out monthly surveys to track their spending habits and happiness levels related to their purchases.

The participants were divided into two groups. One group shared their spending choices publicly, through social media like Twitter, and with family and friends. The other group kept their spending private. Meanwhile, the remaining 100 participants were in a control group—no windfall for them, but they still filled out surveys about their well-being.

The study aimed to explore whether and how different spending choices influenced happiness levels, comparing the impact across high- and low-income countries.

Key Findings: How Spending Can Boost Our Happiness

So, what did the study reveal? Well, it turns out that the way we spend money can have a significant impact on our happiness—and this can vary depending on where we live. Globally, participants who spent their windfall on charitable donations, experiences, education, or personal care reported increased happiness.

However, there were noticeable differences between participants from high- and low-income countries. People living in high-income countries experienced more happiness when spending money on gifts for others or time-saving purchases, like hiring help or buying convenience items. Interestingly, they reported less happiness from spending money on basic needs, such as paying off debt or housing expenses.

On the other hand, participants in low-income countries derived more joy from essential purchases, such as paying for housing or clearing debt, which aligns with their immediate financial needs and challenges. The study shows that the context in which people spend their money, such as their financial situation, plays a major role in how fulfilling their purchases are.

The Power of Privacy: Does Sharing Impact Happiness?

One interesting aspect of the study was the effect of sharing spending habits. It was found that those who kept their spending private derived more happiness from charitable donations and buying gifts for others compared to those who shared their purchases publicly. This suggests that keeping spending private may allow people to enjoy their purchases more deeply, without feeling the pressure of social comparison or the need to justify their choices.

This could be due to the personal satisfaction people get from giving, especially when it's done privately. In a world where social media often amplifies our need to display our lives, this finding reminds us of the importance of quiet, meaningful acts of kindness that may be more fulfilling when kept to ourselves.

The Control Group: What Happens When We Don't Have a Windfall?

What's also fascinating about this study is what the control group revealed. Those who didn't receive the $10,000 windfall had lower overall well-being scores compared to the participants who received money, especially when comparing those who spent the money in ways that brought them joy versus those who didn't find happiness in their purchases.

This highlights that, while money itself isn't a guaranteed source of happiness, the opportunity to spend it in ways that align with personal values and desires can have a positive impact on our overall well-being.

Public Health Implications: How This Study Connects to Our Health

While this study is rooted in psychology, it holds significant public health implications as well. At Harvard T.H. Chan School of Public Health, Dr. Stenlund's current work focuses on the role of optimism in health outcomes. This study ties into the growing recognition in public health that happiness and well-being play a vital role in our mental and physical health.

Remember, it's not just about having wealth—it's about using it in ways that align with our values and bring us joy. So, let's think carefully about how we spend our money and consider how our choices can contribute to our well-being!