by Devin Frampton
Does your brain affect your financial happiness? You betcha. Why can other people be happy about their finances? Are they merely making more money then you are? A study performed by Dr. Ryan T. Howell, a professor at San Francisco State University, suggests that your brain reacts to your choices about purchases, savings, debt, and related stress points. His study found that people who feel happy about their finances all follow a similar pattern.
Here is how Dr. Howell explains it:
“To maximize happiness, the very first thing you need to do is get out of credit card debt. You may get some momentary joy from making a purchase you really want, but the financial stress of debt will make you worse off — it’s pretty much the worst thing in the world for your happiness.
Second, we found that happy people follow a particular pattern when spending money after their essentials are paid for: They save or invest about 25 percent of it. They take about 12 percent and earmark it for charities, religious organizations or gifts for other people. And they spend about 40 percent on meaningful life experiences. Those are the three most salient characteristics of happy spenders.”