The Importance of Savoring and Making Happier Money Decisions

With Dr. Jordi Quoidbach | Behavioural Scientist | Professor | Speaker Summary:In this episode, Dr. Quoidbach explores the relationship between money and happiness. He points out that while money does impact happiness, its influence is surprisingly limited, especially at higher income levels. He notes that financial stress significantly affects happiness among those with lower incomes. Dr. Quoidbach recommends seeking jobs that offer meaning, connections, and growth opportunities. He also suggests outsourcing unenjoyable tasks to free up time for more rewarding activities and emphasizes the importance of maintaining strong social ties for overall well-being. He further discusses how wealth can reduce our ability to appreciate the smaller joys in life, as constant access dulls our enjoyment. Taking breaks from constant consumption and temporarily giving up pleasures can enhance our capacity to savour life. The episode also touches on the benefits of happier individuals engaging more effectively in challenging discussions and negotiations, enhancing their happiness. Lastly, Dr. Quoidbach highlights research showing that happier companies perform better in the market and discusses the cognitive costs associated with poverty. Takeaways There is a correlation between money and happiness, but it is much lower than people think. Money matters more at lower income levels, where financial hardship can cause stress and negatively impact happiness. Pursue jobs that provide meaning, connection, and opportunities for growth. Social connections are a significant predictor of happiness. Money can act as a buffer against stress, but its impact on happiness diminishes beyond a certain point. There is a cognitive cost to poverty. As income increases, the ability to savour the little things in life decreases. Reminding ourselves that life is unpredictable and that access to things may not last forever can enhance our ability to savour. Taking breaks from consumption and giving up something we enjoy for a period of time can help reset our savouring level. Happy people are more likely to engage in tough conversations and negotiations, which can lead to overall happiness. Quotes: "Money offers psychological freedom to be not so much short-term focused and maybe think outside the box." "The more you went to fine dining, the more you went to Michelin star restaurants in your life, the less likely they were to savour these things." Links: Dr. Quoidbach Website: CLICK HERE