Skip to main content

Use your money to buy happier time

By Elizabeth Dunn and Michael Norton, Special to CNN
May 20, 2013 -- Updated 1132 GMT (1932 HKT)
Unhappy time -- motorists are tied up commuting in Jakarta, Indonesia.
Unhappy time -- motorists are tied up commuting in Jakarta, Indonesia.
STORY HIGHLIGHTS
  • People assume earning money now will let them have opportunities to enjoy life later
  • Authors say people often seek more money than they need
  • It's a smart use of money to "buy" more leisure time, minimize commuting
  • Authors: Buying a luxury car and other high-end products may not increase happiness

Editor's note: Elizabeth Dunn and Michael Norton are co-authors of "Happy Money: The Science of Smarter Spending" (Simon & Schuster) and professors at the University of British Columbia and Harvard Business School, respectively.

(CNN) -- The logic is so simple: If I work hard now, the money I earn will give me the opportunity to do all the things that make me happy later.

What's the catch? It turns out that when we get into the habit of working and earning, it can be hard to stop. Instead of using our time to get as much money as possible, new research suggests that we'd be better off using our money to buy happier time.

Remarkably, wealthy people -- despite having access to everything money can buy -- end up spending at least as much time as the rest of us on pursuits they don't enjoy. Like commuting. And, of course, working too much.

Elizabeth Dunn
Elizabeth Dunn
Michael Norton
Michael Norton

Researchers have had no difficulty luring people into the trap of overworking and underenjoying. People in a recent study were told that their only goal in the study was to maximize their happiness. They could engage in "leisure" by listening to pleasant music or "work" by pushing a button to trigger an annoying noise.

For every 10 pushes of the button, they were paid with a Hershey's Kiss. For five minutes, they could press the button as much as they wanted, and earn unlimited Kisses. They weren't allowed to eat any chocolates during this part of the study, but afterward. they got five more minutes to gorge on their earnings, with just one rule: They weren't allowed to take any leftover treats home.

This simple study captures the predicament of modern life. With enough talent and hard work, we can earn more and more money, but we never get more than 24 hours in a day to enjoy the fruits (or chocolates) of our labor.

The researchers discovered that most people worked really hard to earn chocolates in the first five minutes -- so hard that they couldn't possibly finish all of them in the second five minutes. This is the curse of work for all of us. We get so caught up earning money that we forget to leave ourselves time to enjoy it.

Michael Norton: How to buy happiness

The researchers solved this problem for one group of participants by putting a cap on the number of Kisses they could earn. What happened? Capping their earning potential actually increased their happiness.

Stepping outside of the laboratory and re-entering the real world, most people probably wouldn't volunteer to be in a "capped-income" group. Still, most of us could benefit by thinking more carefully about the tradeoffs we make between time and money.

Our research suggests that people would benefit from asking themselves a basic question before reaching for their wallets: How will this purchase affect my time? If your child keeps asking for a pet, you could pay $50 for a goldfish, tank and a year's supply of fish food, or commit thousands of dollars to a golden retriever.

Compared with a goldfish, caring for a dog comes with a big time burden and big price tag. But what many people fail to consider is that the dog might transform the quality of their time. Having a dog commits us to going on daily walks and chatting with other dog owners at the park. Research shows that exercising and talking to others are among the very happiest ways to use our time. In this case, dog beats fish.

Some forms of socializing are better than others.

Our research on online daters shows that they spend five hours per week searching through profiles and another seven hours writing and responding to e-mails, all for a payoff of less than two hours of real-life face-to-face interaction.

Many online dating services are cheap or even free -- a seemingly good deal. But while other companies may cost more, they can lower these negative time costs of meeting new people.

A number of new companies charge single people to bring them together for activities ranging from wine tasting to hot air ballooning. There's no guarantee you'll meet your soul mate, but paying more for your dating service at least guarantees you'll enjoy your time -- getting tipsy, or high.

Don't have the time or the money for a balloon ride?

If you're like most Americans, your car may be to blame. On average, Americans spend two hours a day working just to afford their cars. Commuting ranks among the unhappiest activities in a typical day. When researchers in Germany did the math, they found that the average worker would need their income to go up by a third just to offset the happiness cost of tacking on a 20-minute commute.

It may seem reasonable to solve the commuting problem by investing in a nicer car. Wrong. Sinking more money into a car is a bad deal for happiness.

Although people expect to enjoy driving a BMW more than a Ford Escort, research shows that drivers get no more pleasure from commuting in an expensive car than a cheap one. As a result, Americans spend two hours of each day working just to afford cars that do little to improve their happiness.

Even if it means taking a pay cut, many people would benefit from living closer to work -- or closer to public transit -- and getting rid of their cars altogether. In one survey, New Jersey commuters reported feeling considerably less stressed after commuting to work in New York City by train than by car.

Focusing on how money can improve our time, rather than on how money can swell our coffers, offers the possibility of much more happiness.

Of course, maintaining this focus can be challenging in the face of new products that dazzle us with appealing features. The $350 Harmony Ultimate remote control, for example, allows you to operate your TV and 14 other devices with a full-color touchscreen, promising to give you "all the control you deserve."

It might be better, though, to reconsider how much time you spend with your TV in the first place. (According to the data, TV watching is a clear happiness drain). Instead of taking control of your home entertainment system, take control of the tradeoff you're making between money and time -- even if it means passing up some chocolate.

Follow @CNNOpinion on Twitter.

Join us at Facebook/CNNOpinion.

The opinions expressed in this commentary are solely those of the authors.

ADVERTISEMENT
Part of complete coverage on
September 22, 2014 -- Updated 1259 GMT (2059 HKT)
You could be forgiven for thinking no one cares -- or even should care, right now -- about climate change, writes CNN's John Sutter. But you'd be mistaken.
September 21, 2014 -- Updated 2132 GMT (0532 HKT)
David Gergen says the White House's war against ISIS is getting off to a rough start and needs to be set right
September 22, 2014 -- Updated 1300 GMT (2100 HKT)
John Sutter boarded a leaky oyster boat in Connecticut with a captain who can't swim as he set off to get world leaders to act on climate change
September 22, 2014 -- Updated 1917 GMT (0317 HKT)
Ruben Navarrette says making rude use of the Mexican flag on Mexican independence day in a concert in Mexico was extremely tasteless, but not an international incident.
September 22, 2014 -- Updated 1359 GMT (2159 HKT)
Michael Dunn is going to stand trial again after a jury was unable to reach a verdict; Mark O'Mara hopes for a fair trial.
September 22, 2014 -- Updated 2315 GMT (0715 HKT)
Is ballet dying? CNN spoke with Isabella Boylston, a principal dancer at the American Ballet Theatre, about the future of the art form.
September 19, 2014 -- Updated 2147 GMT (0547 HKT)
Sally Kohn says it's time we take climate change as seriously as we do warfare in the Middle East
September 24, 2014 -- Updated 0017 GMT (0817 HKT)
Laurence Steinberg says the high obesity rate among young children is worrisome for a host of reasons
September 19, 2014 -- Updated 1302 GMT (2102 HKT)
Dean Obeidallah says an Oklahoma state representative's hateful remarks were rightfully condemned by religious leaders..
September 19, 2014 -- Updated 1922 GMT (0322 HKT)
No matter how much planning has gone into U.S. military plans to counter the Islamic State in Iraq and Syria, the Arab public isn't convinced that anything will change, says Geneive Abdo
September 19, 2014 -- Updated 1544 GMT (2344 HKT)
President Obama's strategy for destroying ISIS seems to depend on a volley of air strikes. That won't be enough, says Haider Mullick.
September 19, 2014 -- Updated 1303 GMT (2103 HKT)
Paul Begala says Hillary Clinton has plenty of good reasons not to jump into the 2016 race now
September 19, 2014 -- Updated 1501 GMT (2301 HKT)
Scotland decided to trust its 16-year-olds to vote in the biggest question in its history. Americans, in contrast, don't even trust theirs to help pick the county sheriff. Who's right?
September 19, 2014 -- Updated 0157 GMT (0957 HKT)
Ruben Navarrette says spanking is an acceptable form of disciplining a child, as long as you follow the rules.
September 19, 2014 -- Updated 1547 GMT (2347 HKT)
Frida Ghitis says the foiled Australian plot shows ISIS is working diligently to taunt the U.S. and its allies.
September 19, 2014 -- Updated 1958 GMT (0358 HKT)
Young U.S. voters by and large just do not see the midterm elections offering legitimate choices because, in their eyes, Congress has proven to be largely ineffectual, and worse uncaring, argues John Della Volpe
September 19, 2014 -- Updated 0158 GMT (0958 HKT)
Steven Holmes says spanking, a practice that is ingrained in our culture, accomplishes nothing positive and causes harm.
September 18, 2014 -- Updated 1831 GMT (0231 HKT)
Sally Kohn says America tried "Cowboy Adventurism" as a foreign policy strategy; it failed. So why try it again?
September 18, 2014 -- Updated 1427 GMT (2227 HKT)
Van Jones says the video of John Crawford III, who was shot by a police officer in Walmart, should be released.
September 18, 2014 -- Updated 1448 GMT (2248 HKT)
NASA will need to embrace new entrants and promote a lot more competition in future, argues Newt Gingrich.
September 16, 2014 -- Updated 2315 GMT (0715 HKT)
If U.S. wants to see real change in Iraq and Syria, it will have to empower moderate forces, says Fouad Siniora.
September 18, 2014 -- Updated 0034 GMT (0834 HKT)
Mark O'Mara says there are basic rules to follow when interacting with law enforcement: respect their authority.
September 16, 2014 -- Updated 1305 GMT (2105 HKT)
LZ Granderson says Congress has rebuked the NFL on domestic violence issue, but why not a federal judge?
September 16, 2014 -- Updated 1149 GMT (1949 HKT)
Mel Robbins says the only person you can legally hit in the United States is a child. That's wrong.
September 15, 2014 -- Updated 1723 GMT (0123 HKT)
Eric Liu says seeing many friends fight so hard for same-sex marriage rights made him appreciate marriage.
ADVERTISEMENT