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Can money really buy hapiness?



The Beatles told us money "Can't Buy Me Love," but can money buy happiness?

That's a question of great exploration and academic research lately. And it's infiltrated the pages of some best-selling books that aren't specifically about that topic.

Here is a sampling of relatively recent book titles that address in drastically different ways the issue of money and happiness.

-"Stop Acting Rich" by Thomas J. Stanley. Stanley was co-author of the wildly popular 1996 book "The Millionaire Next Door," which drew on survey data to show true millionaires often don't look the part, and are usually quite frugal. In his newest book, the former marketing professor again delves into the data, this time to reveal the real brands millionaires buy. Hint: The brands aren't Grey Goose vodka, Rolex watches and BMW cars. His overarching point is that true millionaires, not wannabes trying to look the part, are often happy with functional brands and have no need to show off. The No. 1 watch brand among millionaires? Seiko. The No. 1 car? Toyota.

One unmistakable attribute of the truly rich is they live in modest neighborhoods, given their wealth. As a result, they don't feel the social pressure to spend extravagantly and are happier for it. A person with $100,000 household income is likely to be happy in a neighborhood where everybody else makes $75,000, but unhappy in a place where neighbors make $200,000.

Overall, there's no evidence a big-spending, glittering lifestyle leads to more life satisfaction, Stanley says. In fact, his research shows the more money you spend trying to look rich, the less likely you ever will be.

-"The Happiness Project" by Gretchen Rubin. This is not a money book at all. Instead, it's partly a memoir of a wife, mother and writer on a year-long quest to achieve more happiness. And it's partly a self-help book, backed by thorough research into the topic of happiness and feedback from her popular blog, happiness-project.com.

Still, money comes into play throughout Rubin's exploration. It's not that she's dealing with a lack of money -- she describes living a comfortable lifestyle. Instead, it offers ways to use money to increase happiness.

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Those purchases will vary among individuals, but a running theme is that spending money to have experiences with other people is a great bet for boosting happiness. That might also involve charitable giving. Also indulging in a modest splurge can help. Rubin writes that she often used whatever low-quality pens were available, but got a thrill from buying several of her favorite pens that cost what she considered a pricey $3 each. "My new pens weren't cheap, but when I think of all the time I spend using pens and how much I appreciate a good pen, I realize it was money well spent," she writes. Use money to eliminate sources of irritation, marital conflict or clutter. And it's wise to use discretionary money to support your health, because fit people are generally happier. However, the unused gym membership and the treadmill that acts as a clothes hanger don't count.

-"Your Money: The Missing Manual" by J.D. Roth. The new book by the creator of the popular personal finance blog, GetRichSlowly.org, is an introduction and exploration of many personal finance topics, from spending and saving to credit and investing. But time and again, Roth comes back to the notion of what money is good for -- and what it's not good for.

When people are poor, a boost in income and spending can increase happiness a lot. But people who are middle-class and comfortable get rapidly diminished happiness returns from more spending. Then, the trick to gaining more happiness is to simply realize when you're satisfied. "If you don't ask yourself how much is enough, there's this temptation to keep spending in a fruitless quest to find fulfillment," he said. For Roth, it was his collection of books, which numbered in the thousands, and his insatiable desire to own more. He ultimately realized he could borrow any book he wanted at the library, and if he wanted to own a book, he had money to buy any book he wanted. "I don't necessarily have to own a book that I think I might eventually read," he said. "By reducing what I want, I've made myself much happier."

Now, he finds experiences give him more bang for his buck. That's why he recently returned from a trip to Belize with his wife, and planned a long train ride with a friend from Chicago to Portland, Ore. When you start ignoring product advertisements and taking control of your money life with concrete financial goals, the path to joy becomes clearer. "Living life on your own terms is one of the best ways to find happiness," he said.