“If money doesn’t make you happy, you probably aren’t spending it right”. This is the title of a research study by Elizabeth Dunn, a psychologist at the University of British Columbia in Canada who believes that while money is an extremely powerful opportunity for happiness, people “routinely squander” this opportunity due to gross neglect of the art and craft of spending.

The principles elucidated by Dunn are exquisitely elaborate and tested. She proves that money spent on material items (clothes, gadgets, houses and furnishings) provides far less long-term satisfaction than spending on experiences, in particular leisure activities.

Dunn found that people are happiest when they are “engaged”. Not only do experiential purchases fulfil that condition when actually being lived through, but people consistently show elevated moods when reminiscing on them later — a safari expedition, a honeymoon vacation — since they develop lifelong memories. Material purchases, on the other hand, become stale far more quickly. More pivotal still is the fact that experiences are likely to be shared with others and Dunn is quick to remind us what psychotherapists have insisted for decades — people are our greatest source of happiness.

Application

This year, for Eid you may consider abandoning ‘upgrade car’ from your wish-list and substitute with ‘visit home to see the family’ or ‘take a trip with the family’. In other words, let’s begin by re-directing the money to where it will deliver the most happiness for more people.

Another very powerful tool for happiness is spending money on others. Dunn cites evidence of subjective feelings of well-being when participants reflect on times they had spent ‘pro-socially’, as well as a study that showed that donating money led to activation in brain areas associated with receiving rewards. Furthermore, research showed that giving a gift to someone you're romantically tied with significantly elevates the intensity of the latter’s conviction that you may have a future together. Spending money on others boosts your image as well. Thus, where social relationships are critical for happiness, pro-social expenditure profoundly furthers this cause.

Application

Consider revising your Eid budget to shift money from your personal shopping list to your funds for gifts and Eidee. If you've been deliberating spending an exorbitant amount to look presentable this Eid, for a certain someone or just generally, your most powerful instrument is not the world's most expensive brand of make-up but pro-social behaviour.

Or let’s say your scrawny 17-year old son barely steps away from his gaming console; surprise him with a membership at the best gymnasium in the city. As a bonus, offer to join up as well so the two of you can spend some quality time together.

‘Pay now and consume later.’ Dunn cites two convincing reasons to reverse the ongoing fashion of ‘consume now, pay later’ concurrent with credit card use. The first is that the latter eliminates anticipation. And anticipation is an extremely potent, and free, source of happiness. As a matter of fact, Dunn cites research to show that the anticipation of an event may often be even more powerful than its actual consummation. Secondly, there is evidence to show that when people consume spontaneously, they are tempted by ‘vices’ — junk food and crude entertainment — while planned consumption is more likely to favour positive behaviour. The very act of deciding on what to buy furthers the happiness component and keeps our attention riveted to the process.

Application

If you're like most people, last Eid probably featured the purchase of half a dozen cakes from the nearest bakery. This Eid, prepare the cake at home. You'll have to start the process, the errands, quite a bit in advance, and that’s exactly what you need. The happiness starts with the very process of flipping through a cookbook for the selection process, buying the groceries, and finally, producing your masterpiece.

Social connections. Anticipation. Novelty. The whole experience. While your average philistine is drafting the outline for another fast-food version of the year’s most wonderful opportunity for happiness, you can make the changes you need to enjoy the most meaningful Eid you’ve ever had.

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