Happiness, Hedonic Adjustment, Experiences
This was a very good video. I can honestly say that I am very happy and content, and I lead a very fulfilling life. I do not usually watch this kind of “happiness” content because I’m already happy. But this video did give me some very important insights which have influenced the way I approach money and happiness.
Memories as Dividends
The main takeaway for me is to prioritize creating memories by investing in experiences. The author phrases it very well here:
“When you buy a shiny new car, every time you use it that shine wears of just a little bit. You hedonically adjust. With a memory, every time you think about it, you experience joy. Your brain cements the pathway to that memory, and you relive it in your brain, experiencing feelings of happines or nostalgia.”
Hedonic adjustment happens when you become used to the things you like, and you need to have bigger and better things in order to get the same satisfaction. The Stoics, among others, counteracted this with forced deprivation: eating plain bread for a few days will make you appreciate your customary food.
Another very clever point which Damien makes is to see money spent on experiences as dividends:
“Experiences and memories in this way are like investments in happiness, because we can call on them to release the happiness hormones in our brains that make us feel good.”
They can be seen as happiness dividends. You get the initial experience and you get to re-live it again and again. And the best thing is that you don’t hedonically adjust to these memories.
This definitely made me re-think my approach to fincancial happiness and independence. I am definitely going to prioritize experiences a lot more in the future.
Other Takeaways
- Variety and anticipation of events or smaller purchases provides a large portion of the happiness, rather than the purchase itself
- Make many smaller purchases rather than one big purchase
- Take short weekend holidays rather than a big expensive 4 week holiday
Norway
A case in point is my upcoming trip to Norway. Ever since I decided on the date for the trip, I noticed my energy has increased because I’m excited about the trip. I’m getting a lot of joy out of the anticipation: I’m reading up on areas to visit, going through all of my outdoor gear, and getting out into nature more because I want to connect to that Norwegian part of me. This is all rooted very deeply within me because I lived there for 9 years, and the anticipation of returning to Norway for a short time gives me so much joy.
By taking time off and purchasing the necesseties for my trip, I’m investing in experiences that will create memories which in turn will provide me more happiness in the future as dividends.
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