In their book “Happy Money” Elizabeth Dunn and Michael Norton write that Western Society is doing money all wrong. The American Dream is misleading us to spend 50% of our income on housing and transportation, the two spending categories least correlated with happiness.
What does have a high correlation?
Treating ourselves occasionally
Paying in advance
Investing in others
In addition, the authors also state that debt is inversely correlated to happiness because it impacts our sense of personal freedom.
This week’s question for discussion:
What types of spending offer you the highest happiness ROI?