If its better to be happy than rich why do we spend more time doing things to get richer and less time doing things that make us happier ?
Recently, I was following a discussion on twitter between Nic, Adam and Andrew on the concept of ‘fuck you money‘ (fum) and it got me thinking.
When it comes to money, I dont use credit cards, or have mobile phone contracts yet I spend thousands travelling every year. I like to think that how I spend my money makes me happier.
Of course wealth and happiness are not mutually exclusive, financial writer Jonathan Clements describes at least three ways that financial independence can improve our well-being.
- If you have money, you dont have to worry about it
- It leaves you free to persue your passions
- It can free you to spend time with friends and family
So its important to save and invest to reach your own personal fum goal. Of course there is always a balance and personal preference is a large part of that.
Personally, like the couple in this NYTimes article, I’ve been a long time believer that spending money on experiences buys you more “value” than spending on things.
One major finding is that spending money for an experience — concert tickets, French lessons, sushi-rolling classes, a hotel room in Monaco — produces longer-lasting satisfaction than spending money on plain old stuff. ‘It’s better to go on a vacation than buy a new couch’ is basically the idea,” says Professor Dunn, summing up research by two fellow psychologists, Leaf Van Boven and Thomas Gilovich. Her own take on the subject is in a paper she wrote with colleagues at Harvard and the University of Virginia: “If Money Doesn’t Make You Happy Then You Probably Aren’t Spending It Right.”
I’m very wary of lifestyle inflation and am confident that I will reach my definition of fum (mortgage paid off + passive income of 25K) before I retire, will you ?
i am of the mind that i would rather do things than have things. i would rather take a holiday with nic for my birthday than get any stuff. we even go so far as to try not to give other people things either – for example, we don’t do xmas cards or gifts, instead we choose something (usually from oxfam or similar) and use the money (that we didn’t spend buying shit for friends and family) to help someone who really needs it. that feels good too.
i reckon me and nic will definitely get to the point where we have FUM before we retire and i am glad you have a plan to reach your definition of it!
The richest man in the world is not the man who has everything, he is the man who needs nothing.