Over at NOW Magazine, I stumlbed onto an incredible articles by Elizabeth Bromstein called “Cash Crunch.” In it she goes beyond the standard, sometimes faceless money tips (which, though useful, don’t really make you feel much beside the need to go to the bank) and examines how young people feel about money. Not “feel” as in “I feel I want more money”, but the more subtle ways that it impacts us emotionally. Over-doing anything is psychological before anything else: over-gambling, over-eating, over-drinking, over-whatevering. Over-spending is the same. So why are we doing it? How does money really affect how “happy” we are? Are we spending because we’re we feel happy, or do we feel happy when we’re spending?
According to medical researcher Peter Ubel at the U. of Michigan, “Once you have your basic needs met, getting more money rarely brings us as much additional happiness as we think. If you make $70,000 a year and the person to your right makes $700,000, it’s still almost a flip of the coin which one of you is happier.â€
The whole article is definitely worth a read, but to boil it all down here are Bromstein’s 5 Quick Tips…
1. Bliss over a new gadget fades much faster than fond memories of a good time, studies suggest. If you invest in fun experiences, you’ll enjoy them for a lifetime.
2. Don’t assume more money will make you happier. Studies show that poorer folk don’t spend more time in bad moods than richer ones. Your bucks won’t save you from your demons.
3. Don’t assume that what you want at any given moment rep resents your true desire. Neuroscience shows the conflict between your pain and pleasure centres makes you a less-than-rational creature.
4. Keep tabs on your spending  – close, close tabs – and rate each expenditure on the pleasure scale. Don’t repeat what ain’t wonderful.
5. Don’t compare yourself to others; it will only bug you. There will always be someone on your path with more cash, so keep a gratitude journal and thank your stars for the roof over your head.
