A Data Driven Approach to Happiness
What Science Tells Us about Happiness
What Makes Us Happy?
Financial decisions play a pivotal role in shaping both short- and long-term happiness. Research show that prioritizing experiences over material goods, giving to others, and maintaining financial stability can significantly boost well-being. *harvard.edu
Experiences over Material Goods
Experiences create lasting memories and social connections, which contribute to long-term happiness. *nature.com
Charitable Giving
Spending money on others or donating to charity has been shown to boost happiness.
Learn more
Financial Stability
Having a financial safety net reduces stress and provides a sense of control over life. This stability can contribute to both short- and long-term happiness.
How Spending Impacts Happiness
The graph below provides insights into which spending types contribute more to happiness, aiding personal financial planning.
*Stenlund, S., Guo, Y., Rights, J. et al. How spending decisions shape happiness in everyday life. Commun Psychol 2, 124 (2024). https://doi.org/10.1038/s44271-024-00166-6
Short Term Happiness
Short-term happiness can be enhanced by mindful spending on meaningful moments and experiences.
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Experiences that create joyful and lasting memories.
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Small occasional indulgences that bring immediate pleasure.
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Quality time with loved ones or engaging in enjoyable activities.
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Practicing gratitude for what you have.
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Reducing stress by simplifying your life.
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Finding joy in spontaneous yet budget-conscious decisions.
Long-term Happiness
Long-term happiness may come from aligning financial choices with your values, building stability, and investing in relationships and experiences.
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Aligning financial decisions with personal values and life goals.
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A strong financial safety net, such as savings or emergency funds.
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Investing in meaningful relationships and fostering a supportive social network.
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Prioritizing personal growth through education, skills, and experiences.
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Maintaining financial stability by managing debt and planning for the future.
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Contributing to causes or charities that align with your beliefs for a sense of purpose.
What to Avoid
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Accumulating unnecessary debt.
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Overspending on material possessions
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Neglecting financial planning, resulting in future instability.
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Sacrificing health and personal time for financial gain.
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Comparing oneself to others' financial situations.
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Ignoring the importance of balancing time and money.
Where a financial planner can help
A financial planner can help individuals align their financial decisions with personal values and life goals, fostering intentionality that can lead to greater long-term happiness and well-being.
T.Mann Financial's 3 Step Approach
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Clarify Your Goals – We start with a conversation to identify what success and happiness mean to you, beyond just financial metrics.
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Identify Misalignment – We assess how your current spending, time allocation, and financial decisions align, or don’t, with your true priorities.
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Intentional Realignment – Together, we develop strategies to shift your resources toward what truly brings you joy, fulfillment, and long-term well-being.
Intentional "Use Buckets"
401(k)s work well because they have a clearly defined future use (retirement) and are kept separate from other funds.
One practical way we achieve this is by creating goal specific buckets that can help us reduce decision fatigue and the guilt that is associated with some types of spending.
Consider these buckets:
Happiness
Experiences
Healthy living
Fun money
Some clients put this into action using the envelope method or online savings accounts that can be directly linked to financial planning software, like the kind T. Mann Financial uses, providing real-time tracking and seamless integration into their overall plan.
Automation is Key!
401(k)s contributions are often automatic, out of sight and out of mind.
Utilize Tax Advantages If Possible
401(k)s contributions are often tax-advantaged, lessening the pain we get from temporarily parting with our cash.
Strategically Identify & Engage Allies
Surrounding yourself with the right people can be key to realigning yourself toward what truly brings you happiness.
Who are your allies? Mentors, friends, or financial advisors
These should be people that can: support, guide, and keep you accountable. These allies can help you refine priorities, navigate challenges, and stay focused on your values. Seek out those who uplift, inspire, and share your vision for a fulfilling life.
Reduce exposure to individuals or influences that create barriers to your happiness, whether through negativity, pressure, or conflicting priorities.
Oregon Specific Examples
Making thoughtful financial decisions and planning effectively can help foster happiness.
How your life can benefit
Imagine a woman named Sarah, a resident of Eugene, Oregon. She found herself overwhelmed with managing her finances and planning for the future. Seeking clarity, she partnered with T. Mann Financial, a financial planning firm serving Eugene, Springfield, and surrounding communities. With expert guidance, Sarah developed a plan that aligned her financial decisions with her values, such as supporting Greenhill Humane Society and enjoying the beauty of Oregon's outdoors, including trips to Skinner Butte Park and the McKenzie River. Over time, Sarah felt more stable, reduced stress, and created opportunities for long-term happiness by investing in experiences that enriched her life. With T. Mann Financial's tailored approach, Sarah discovered that thoughtful financial planning wasn't just about numbers, it was about building a fulfilling future right here in Oregon.
Another example would be John, a lifelong resident of Springfield, Oregon. Imagine he sought help from T. Mann Financial to help secure his financial future and find ways to give back to his community. With their expert guidance, John developed a financial plan that not only built long-term stability but also allowed him to contribute to causes he deeply cared about through strategic charitable giving. Inspired by his love for the Oregon coast, John supported initiatives focused on preserving the Siuslaw River estuary near Florence, a place he frequently visits to enjoy its serene beauty. By aligning his financial goals with his personal values, John found peace of mind and long-term happiness, knowing his efforts were leaving a positive impact on the community he cherished. Through thoughtful financial planning, T. Mann Financial helped John create a legacy rooted in purpose and fulfillment.