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The Best Financial Advice I Have Ever Heard

As an average person, working hard every single day, there’s just so much cash left after your regular expenses. When it comes to spending your money, you have to decide on what you will spend it.

The Best Financial Advice I Have Ever Heard – backed by Science suggestions how spending money can make you happy.

MEMORIES ARE BETTER THAN GOLD

A 20-year old research on the topic was conducted by Dr. Thomas Gilovich, a professor of psychology at Cornell University. It reached a strong and clear-cut result: Do not spend your money on things, because your supply of happiness will quickly fade away.

There are three crucial reasons for this:

  1. We get used to spending money on new things. What once seemed exciting and new, quickly becomes the standard.
  2. You will raise your bar, trust me. Soon after the purchase, you will find yourself expecting more and more. There is always a better alternative.
  3. The buddy problem. Until someone you know buys a better version of the product, let it be a car or any other thing, you are happy with your possession. That often changes rapidly, when you find out all the better features of the better version.

One of the most “lethal” enemies of happiness is ADAPTATION, explained Gilovich. We buy things that make us happy, and we triumph, but only for a short period of time. The real paradox hides under our assumption that the happiness we get from buying something will continue as long as we will have the item. It seems intuitive that investing in something we can see, hear or touch on a permanent basis delivers a great value. But it’s simply just not true.

All Science research recently discovered that experiences—as fleeting as they may be—provide more lasting happiness than things.

 

Fill your life with experiences, not things. Have stories to tell not stuff to show. Only then you will be happy.

EXPERIENCES HAVE “MAGICAL” POWERS

Experiences become a part of our identity.

We are not our properties, but we are the collection of all the spots we have been, the things we have done, and the accretion of everything we have seen. Our experiences are a larger part of ourselves than our material goods.

You can truly enjoy everything you have and you can think that a section of your identity is linked to all those things but no-mather how hard you try, they will stay separated from who you are. In contrast, your experiences really are part of you. We don’t compare experiences in the same way as we compare things.

A Harvard study

When people were asked if they would rather possess a salary that was lower than that of their peers or a low salary that was higher, lots of them could not decide. When they were asked the same question in regards to the amount of a holiday, most people picked a longer holiday, despite the fact that it was shorter. It’s challenging to quantify the comparative value of any two experiences, which makes them that much more pleasing.

 

The Best Financial Advice I Have Ever Heard - Invest money into experiences not things
The Best Financial Advice I Have Ever Heard – Do not invest money into things, buy experiences instead

 

Anticipation issues

Anticipation was also analyzed by Gilovich. He Discovered that expectation of an experience causes enjoyment and excitement, while anticipation of receiving a possession causes impatience. Encounters are gratifying from the very first moments of planning, all the way through to the memories you cherish forever.

Experience me, now!

I am sure it already happened to you, that you have purchased something that wasn’t as cool as you thought it will be? And It’s sitting right there all the time, reminding you of your disappointment. In case your purchase does fulfill your expectations, buyer’s remorse is likely to set in: “Sure, it’s cool, but it probably wasn’t worth that kind of money.”

All these “problems” of buying things don’t show up in our minds when it comes to experiences. The very fact that every experience lasts only for a brief moment of time is part of what makes us value them so much, and that value has a tendency to increase as time passes.

Nothing ever becomes real, until it is experienced.

At the end…

Think about it. When the end will be close and you will try to remember all of these great moments you have experienced in your life, are you really going to regret the fact that you had that iPhone 4S, while everyone else has long ago moved to a brand new iPhone 6? I think you won’t even think about that, not even for a second. You will only remember all the crazy, hilarious and most loving memories you have experienced. That short but strong moments of your life, that shaped you.

Don’t try to be famous, try to be happy

 

The Best Financial Advice I Have Ever Heard - Do not try to be famous, try to be happy
The Best Financial Advice I Have Ever Heard – we are better off spending our money on exciting experiences.

 

Even though we live in a society obsessed with consumption and all the advertising companies try to sell their promise of happiness with their products, we are better off spending our money somewhere else.

We are Better Off Spending Our Money On Exciting Experiences

When I look back at my life there are decisions I took that shaped my course of life. The most interesting decisions that filled my life with incredible experiences were the start of my Wim Hof Method Practice and a time that I realized that patience, in my process of achieving success, is the key to a happier life. If you are in a stage of life where you are asking yourself about the meaning of everything, I kindly invite you to read What Is the Meaning Of Life? Entrepreneur Perspective.

Team Masterminds

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