7 ways to buy happiness

By MP Dunleavey

Editor's note: Join columnist MP Dunleavey and a group of women as they seek to strip away the myths around money, liberate themselves from debt and find financial sanity. Follow the quest of the Women in Red every other Wednesday in Dunleavey's column on MSN Money, and join the discussion on the Women in Red message board.

Does your money make you happy?

The team here at Women in Red headquarters has launched the 2007 Happiness Challenge -- a live, interactive contest and somewhat unscientific field experiment -- to find out how you can use your money to buy more happiness.

This month, people were asked to submit stories describing how they had spent their money in a way that made them very happy.

The only caveat was that we asked people to focus on things that had brought them lasting joy or satisfaction, as opposed to the short-lived thrill of splurging at the mall. That's because as much as I love to shop -- and I suspect I'm not alone -- economists have yet to find a connection between sales at Best Buy and true happiness.

In fact, a lifestyle based on constant consumption probably won't make you happy, says Christopher Hsee, a professor of behavioral science at the University of Chicago's Graduate School of Business.

Hsee says that when we spend money on certain material goods or status items, there is ''no natural stopping point.'' There will always be a bigger house, a fancier car, a more expensive watch to go after.

When it comes to "intrinsic needs," as Hsee calls them -- including food, rest, relationships, health -- most people can naturally reach a point of satisfaction. Thus, spending more on quality of life, as opposed to stuff, appears to be a better investment.

Indeed, when people submitted their stories about how they had spent money on something that made them happy, those intrinsic values carried the day.

We ended up with seven winners in as many categories. But I want you to think of these folks not as winners but as front-runners, whose stories are excellent examples of how money can bring happiness.

1. Pursue growth

One popular source of satisfaction can be thought of as investing in yourself.

After getting out of the military a few months ago, Monica Rivera found herself stuck in a job as a store manager. So she decided to invest $193.50, plus $96 for books, on an online class toward getting her college degree.

"I used to hate school and never realized how exhilarating it would be to turn in assignments," says Rivera, who lives in Omaha, Neb. "I know this is the beginning of a great thing, as well as a lot of expenses, but I'm looking forward to putting more time, effort and money into this one. Here's to looking toward the future!"

2. Buy back your time

Spending, or surrendering, money to regain personal time is another popular investment.

Last year, Amy Weik decided it was worth giving up a raise and a promotion to have more time with her baby daughter.

Weik, who lives in the Baltimore area, decided to switch jobs -- taking a significant pay cut -- to reduce her three-hour daily commute and 12-hour-plus workdays.

"What I gained was really worth the money I gave up," she says, estimating the total loss at $10,000 a year, including lost matching funds to her 401(k). "I got a life."

In addition to the sanity and the flexibility her new job provides, "I get home in time to play with my daughter and even relax a little."

The biggest payoff was when Weik and her husband learned recently that she was pregnant, "and instead of freaking out, we are only filled with joy. That is worth giving up untold amounts of money for!"

3. Don't forget 4-legged friends

A striking number of people contributed remarkable stories about the joy of rescuing, fostering and adopting animals. One of my favorites:

Mary Lammé, who lives in Southern California, adopted Yaeger, an 8-year-old, 100-pound giant schnauzer who was blind. It was an investment of about $2,350 in adoption fees, vet bills and other assorted expenses during the two years he was a part of her household before he died.

"That was the best $2,350 I have spent in decades," Lammé says. Aside from the satisfaction of saving a life, she says, "over time he taught me more about life than I can probably convey."

If an older, blind dog could adapt to a new owner and a new home, "how can I be scared to try something new, when I've got all my senses?" she asked.

Yaeger introduced Lammé to people in her own neighborhood and, she believes, showed her that it pays to be open to life.

"I learned that jumping in with both feet sometimes brings bigger rewards than analyzing my choices to death," she says. "We miss the old guy and don't miss the money at all -- not at any rate of return over any length of time."

Continued: Upgrade your life

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