While many of us strive to make more money, research suggests that more wealth doesn't equal more happiness. Instead, we need to alter the way we spend the money we already have. Sophie Herdman reports.

 

If you walk into a book shop and stroll over to the self-help section you're likely to spy a number of brightly covered books promising to make you mega rich. 'Earn £10,000 in an hour,' they shout. 'Become a millionaire in a week.'

Yes, we're a society that's constantly led to believe more money instantly equals more happiness. However, in their new book, Happy Money: The Science of Smarter Spending, psychologists Elizabeth Dunn and Michael Norton argue a different case, stating that after a fairly low threshold, more money does not improve our contentment levels. They claim that if we really want a life full of joy, we should change how we spend the money that we do have, instead of trying to make more of it.

Here are their five steps to help you spend more simply, more wisely, and - of course - more happily.


Buy experiences

"It's well documented that people get more happiness from buying experiences, like trips, concerts and special meals, than from buying material things, like dresses and houses," says Dunn.

There are a number of reasons for this. Firstly, we tend to have experiences with other people, material purchases are more often enjoyed alone. Secondly, we tend to compare our material possessions - homes, cars, outfits - to those of others, making us more likely to regret our purchase. Experiences, however, are unique - it isn't as easy to compare a concert you saw with a film your friend saw.

Finally, the rush of happiness you feel when you buy a new material possession fades quicker than experiences.

"I've just bought a new skirt," says Dunn. "I was in a really good mood after I bought it, but soon it will just be another thing in my wardrobe. Whereas memories of experiences often become rosier over time, even if they didn't work out perfectly."

Put it into practice; If you have to choose between buying a new belt and going for a day out with friends, opt for the day out.


Make it a treat

"It would seem that the ideal route to happiness would be to have all the things we like best, all the time, but it turns out that's not true," says Dunn.

When we have something that we love all the time, it becomes the norm and we no longer get excited about having it. That's why if we want something to stay a treat, we should limit how often we have it - fans of the Cadburys Crème Egg or a Starbucks special Christmas coffee will already know the benefits of this restricted access.

Put it into practice: Only have your favourite latte two mornings a week, opting for home-made coffee on the other days. Note how much more delicious your latte tastes when you're not drinking it so regularly.


Buy Time

"A fascinating finding from happiness research is that the big things in life, like getting married and having a good job matter - but not as much as people expect," says Dunn.

The little things, however, matter a lot.

Dunn explains that if you hate certain small chores like hoovering or washing the car, paying someone else to do it can have a big impact on your happiness levels. Not only are you spared the chore "that's a hassle and creates dread" - you can also spend your new-found free time doing something fun.

Put it into practice: If you can't stand cleaning the gutter and you can afford to, pay someone to do it. Make sure that you spend the extra time doing something you really want to do.


Pay now, consume later

This is essentially an anti-credit card rule, declaring that paying now and consuming later, rather than consuming now and paying later, will make us happier.

Imagine you've bought a pair of shoes online. When purchasing them, you experienced that dreaded feeling of spending money, but four days later when your new shoes arrive, you only experience the excitement of getting your new item. Dunn explains this is because you have separated the dread of spending from the joy of getting.

But that's not the only reason why paying now and consuming later is a good idea. "A lot of the pleasure people get from holidays actually occurs before they leave," says Dunn.

"Because we can build up our positive expectations about it, we tend to enjoy it more when it happens."

Put it into practice: If you want to buy something, rather than sticking it on the credit card, save up for it and only buy it once you've got the money.


Spend on others

"People often think they'd be happier spending more money on themselves, but spending on others is much better," says Dunn.

It's not quite as simple as giving your friend a fiver though.

"Giving money away doesn't automatically make you happier, how you do it is what counts," says Dunn. "Spending on others in a way that enables you to spend time with that person brings more pleasure."

Put it into practice: Buy two pieces of cake and take them as a surprise to your friend at lunchtime, then sit and eat them together.


:: Information: If you'd like learn more about your relationship with money visit www.dunn.psych.ubc.ca and follow the link to surveys.

Happy Money: The New Science of Smarter Spending by Elizabeth Dunn and Michael Norton (£10.99, Oneworld, out now)


Tried & tested

As Nik Wallenda prepares to walk across the Grand Canyon on a tightrope live on TV (Discovery Channel, Sunday June 23) Keeley Bolger attempts to follow in his footsteps, and discover the health benefits of tightrope walking, at a master class at London's Circus Space


What is it?

The circus might not be the obvious place to look for new toning tips but red noses and funny wigs aside, learning a circus skill can provide a whole range of fitness benefits. Circus space trainer Lila Lifely, who has previously taught radio presenter Chris Evans, is a firm believer in the power of tight roping.

"We have a woman in her 70s who comes here. She finds that the tightrope helps her balance," says Lifely.

As well as improving you balance, there are also the additional benefits of tightening up your quad muscles and core, which you use to keep yourself upright while balancing on the rope. Top tightrope walkers sometimes use heavy balancing poles which also improves muscle tone in the arms.

Aside from aiding stability, walking the wire requires full concentration on the task in hand which many of Lifely's students find soothing after a busy day.


What's it like?

After warming up, our trainer at Circus Space - a charity and circus school in London - Lifely asks us to walk one foot at a time, keeping one leg to the side for balance and touching the opposite toe with the balance leg (walkers do this so they know where the wire is). You then have to slide along the line, our arms straight in the air or at face level to increase stability.

Already, my sliding and balancing is more like wobbling and tumbling and my arms are doing a Pete Townshend-style windmill.

Next, we move to the small wires where we are mercifully given a partner who holds up a broom for us to cling on to as we attempt to walk the line. My first few attempts to step onto the wire are laughable. "Use your core," Lifely shouts. Unfortunately, like balance, core strength is a weakness of mine.

After several shaky tries though, I finally get to the other end of the admittedly short wire (around 10ft long). This done, we now try moving without use of the broom. Unaided, it takes me much longer to stay on the wire and I now can only take two or three steps without toppling to the side.

I finally make it to about half way but lose my confidence and swerve off the wire but it's heartening to see the others - also beginners - walk to the other side unaided. My enthusiasm and actual talent have always been at odds, and this is especially evident when it comes to trying the bigger rope, about 15ft long and a foot off the floor. With Lifely at my side with the broom, I make it over to the other side. Take that broom away and, once again, I find myself off the wire within seconds...

Despite my gracelessness though, I feel calm and like I've had a good work out and the following day, my calves and core feel nicely stretched out.

 

:: Information Skywire Live With Nik Wallenda airs on Sunday June 23 at 1am and is repeated on Monday June 24 at 8pm on Discovery Channel (Sky 520/ Virgin 211). Keeley went to Circus Space in London. Visit www.thecircusspace.co.uk for more details.