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  • Current Opinion in Psychology

Time, Money, and Happiness

By: Cassie Mogilner and Michael I. Norton
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Abstract

We highlight recent research examining how people should manage their most precious resources—time and money—to maximize their happiness. Contrary to people’s intuitions, happiness may be less contingent on the sheer amount of each resource available and more on how people both think about and choose to spend those resources. Overall, focusing on time leads to greater happiness than focusing on money. Moreover, people enjoy greater happiness from spending money on others rather than themselves and from acquiring experiences instead of possessions. Similarly, people enjoy greater happiness from spending time on or with others and from acquiring experiences—both extraordinary and ordinary.

Keywords

Happiness; Behavior; Resource Allocation; Money

Citation

Mogilner, Cassie, and Michael I. Norton. "Time, Money, and Happiness." Current Opinion in Psychology 10 (August 2016): 12–16.
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About The Author

Michael I. Norton

Negotiation, Organizations & Markets
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More from the Authors
  • Calculators for Women: When Identity-Based Appeals Backfire By: Tami Kim, Kate Barasz, Michael I. Norton and Leslie K. John
  • Opportunity Neglect: An Aversion to Low-probability Gains By: Emily Prinsloo, Kate Barasz, Leslie K. John and Michael I. Norton
  • Relational Diversity in Social Portfolios Predicts Well-Being By: Hanne K. Collins, Serena F. Hagerty, Jordi Quoidbach, Michael I. Norton and Alison Wood Brooks
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