Money can indeed buy you happiness, a recent study by the University of Cambridge reveals.
The research, published in the journal Psychological Science, observed 77,000 U.K. bank transactions by 625 participants over a period of six months and discovered if your spending habits match your personality, you can find joy in that.
The five personality traits that were observed were openness to experience (artistic vs. traditional), conscientiousness (self-controlled vs. easygoing), extraversion (outgoing vs. reserved), agreeableness (compassionate vs. competitive) and neuroticism (prone to stress vs. stable).
People who spent the majority of their money “the right way” were more satisfied with their life regardless of how much money they made.
The paper was written by Sandra Matz, a Ph.D. candidate in Cambridge University’s Psychology Department; Joe Gladstone, a research associate at the Judge Business School; and David Stillwell, a lecturer of big data analytics and social science.
Previously, studies pegged money as the “root of all evil” so to speak, and having a weak relationship with a person’s wellbeing. This groundbreaking research shows people can actually be happy if they spend money on things that meet their psychological needs.
The researchers backed their study with a further experiment that involved giving people vouchers to spend in a bookstore or a pub.
Introverts who were forced to spend on a bar were less happy than those who spent their time in the bookshop, while extroverts who were told to spend their vouchers on book were less happy than those in the bar.
The study is the first of its kind to prove that spending money on ourselves rather than giving it away can also result in satisfaction.
This information can have valuable implications for companies, who can use the data to recommend products and services that bring in profits and also result in a happier customer base.
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Thumbnail/Banner Credits: Reuters