Week 3 Flashcards
Some say that money can’t buy you happiness because the things that buy you happiness are not for sale.
The relationship between money and happiness is “_”
weak
What are the two measures of happinesses?
+ define the The Cantrill Ladder
-
Life satisfaction: a person’s thoughts about their life
○ The Cantrill Ladder: rank yourself of where you feel at this time
○ As people get richer, then need more money to make you more satisfied (but only a bit) -
Emotional Well-being: refers to the emotional quality of an individuals everyday experience
○ Studies found that people earn more money, their emotional well-being improves, but only up to a certain point, beyond this point more income doesn’t improve their emotional wellbeing
- Depending on what geographical location
□ (!) People in richer countries, are less likely to feel depression, and happiness grows with more money
(think of the graph) once comfortable needs are met, any additional income does not satify you anymore
If you ask people how they feel on a day-to-day basis, the relationship between income and life satisfaction grows “_”
A) Stronger
B) Weaker
B) Weaker
Define The Focusing Illusion
The Focusing Illusion: its your tendency to focus on one aspect over another (or serval others)
- Sometimes, people ignore the facts that higher income means, longer hours, less sleep, you basically live at work
○ Less time spent with family/friends and things that you actually enjoy
As people get richer, they need a lot more money to make them more satisfied, but there’s no maximum level of income beyond which more seems to contribute nothing
True or false?
True
What is the enemy of happyiness
and how does this relate to the hedonic treadmill?
one of the enemies of happiness is adaption.
You see something, you want something, you buy something, you’re HAPPY, you adapt.
Rest and repeat.
—This is sometimes referred to as the hedonic treadmill.
What are the 8 Pinciples to spend happier [LIST THEM]
1. Buy Experiences instead of Things
2. Help others instead of yourself
3. Buy many small purchases instead of a few big ones
4. Buy less insurance
5. Pay now and consume later
6. Think about what you’re not thinking about
7. Beware of comparison shopping
8. Follow the herd instead of your head
Explain the first 4 Principles (to spend happier)
1. Buy Experiences Instead of Things:
* Experiential purchases (e.g., vacations, concerts) bring more lasting happiness than material goods (e.g., electronics, furniture).
* Experiences are less prone to adaptation and are often revisited in memory, enhancing their value.
* Sharing experiences with others contributes to social connection, a key driver of happiness.
2. Help Others Instead of Yourself:
* Spending money on others (gifts, donations) increases happiness more than personal spending.
* This effect is robust across cultures and even activates brain regions associated with rewards.
* Helping others strengthens social bonds, which are vital for long-term well-being.
3. Buy Many Small Pleasures Instead of Few Big Ones:
* Small, frequent treats (e.g., a coffee, a massage) provide more sustained happiness than occasional big-ticket items.
* This is due to slower adaptation and the novelty of repeated small joys.
* Breaking up larger experiences into smaller segments enhances enjoyment.
4. Buy Less Insurance:
* People overestimate how negatively they will feel after a loss and how much insurance or guarantees will benefit them.
* Psychological resilience (“psychological immune system”) helps people recover from setbacks without expensive protections like extended warranties.
What are the last 4 Principles (to spend happier)
5. Pay Now and Consume Later:
- Anticipation enhances happiness; delaying consumption allows people to enjoy looking forward to the experience.
- Paying upfront reduces post-consumption guilt and focuses enjoyment on the experience itself.
6. Think About What You’re Not Thinking About:
- People often focus on the appealing aspects of a purchase (e.g., a lake house’s view) while ignoring the downsides (e.g., maintenance, long drives).
- Considering the practical, day-to-day impact of a purchase helps set realistic expectations for happiness.
7. Beware of Comparison Shopping:
- Comparison shopping highlights differences between options but often distracts from what will truly make you happy (e.g., functional attributes vs. long-term satisfaction).
- Focusing on superficial distinctions can lead to overvaluing less meaningful features.
8. Follow the Herd Instead of Your Head:
- Observing how others enjoy a product or experience is often a better predictor of your happiness than relying on your imagination.
- Social feedback can guide better decisions and reduce affective forecasting errors.
- use people and their feedback to know what the right decision is
- Higher income correlates with “” life satisfaction, but the effect diminishes as income “”.
- However, The relationship is stronger for individuals at “” income levels, where basic needs like food, shelter, and healthcare are “”.
greater, increases
lower, priorities
Richer people report slightly higher satisfaction, but the difference is “_”.
minimal
Income correlates with satisfaction, but the effect weakens as income rises.
- what is the Logarithmic relationship?
Logarithmic relationship: which means roughly that doubling your income will increase your life satisfaction by ONLY about half a point (0.5) on a scale from 1 to 10.
what is the potnetial link for money and happinesses?
The link between money and happiness may not be causal; health can also influence both.
Wealthy people have better nutrition and better medical care, more free time and more meaningful labor
Why do spending habits matter?
- How money is spent has a substantial impact on happiness:
○ Spending on experiences (travel, social events) tends to bring more joy than material possessions.
○ Spending on others (gifts, charity) enhances happiness more than spending on oneself.
○ Paying for convenience (e.g., outsourcing chores) reduces stress and increases happiness
How can happinesses be influenced by comparsion to others?
- Relative Wealth and Comparison:
- Happiness is influenced by comparisons to others, with **relative income often mattering more **than absolute income.
- Living in a high-income area can reduce happiness if others are wealthier, while living in a lower-income area might boost satisfaction.
When CAN money buy happiness?
- Money can buy happiness up to a certain point, particularly when it alleviates financial stress or provides security.
however, beyond that, focusing on intrinsic goals, meaningful relationships, and personal growth is often more fulfilling.
what are things we can’t adapt to?
What are things we can’t adapt to?
1.Long commutes – Daily stress from commuting rarely fades.
2. Chronic stress or noise – Ongoing disruptions drain emotional energy.
3. Negative social relationships – Toxic or isolating relationships impact happiness.
4. Serious health issues or chronic pain – Persistent discomfort resists adaptation.
5. Financial insecurity – Anxiety over basic needs remains unresolved.
6. Unemployment – Loss of purpose and social stigma hinder adaptation.
^ These resist adaptation because they are repetitive, intrusive, or essential to well-being.
