7 ways to buy happiness

4. Upgrade your life

Several people made a case for investments, even little ones, that ended up upgrading their entire quality of life.

"I live in Wisconsin, where the winters are brutal and spring never seems to come," says Kristin Zickuhr. "So this spring I spent about $250 on a small greenhouse and $300 for a cedar deck beneath it."

Though $550 wouldn't have gotten her a weekend in the Caribbean, Zickuhr's greenhouse brought her weeks of sunshine and warmth in the late winter and early spring. "I fixed it up with secondhand benches and a bamboo chair, and spent the spring out there reading books -- sitting quietly, soaking up the light," she says.

Considering how little she spent, "it brought a lot of happiness."

5. You gain when you give

Giving to others turned out to be one of the biggest ways people spent money on happiness, and it doesn't take much.

Keri P., who preferred not to give her last name, contributes just $25 at a time to Kiva.org, an organization that lends small amounts of money to help impoverished people start or maintain their livelihoods. "I've helped people to buy rice to plant and flowers to grow, and I've given money for sewing machines and fabric and even cows," says Keri, who lives in Nashville, Tenn.

Kiva then pools these microloans so that specific individuals -- you can read their profiles on the Kiva Web site -- can accomplish their goals.

"It makes me happy that I can see exactly where my 'charity' is going," she says, adding that as people pay off their microloans, she reinvests the money in the next person. "I have a portfolio of people I've loaned to. It's almost like you know them personally."

6. Invest in bonds

Another rewarding way to invest your money is in folks you love.

Several years ago, Rhodora Bustos borrowed $1,200 for plane tickets to get herself and her two young daughters out of a violent relationship. She then lived with family members while she saved money to get back on her feet, buy a car and make a down payment on a condo.

"There were many years there where I sacrificed, swallowed pride and started to live again, after that mind-numbing hell," says Bustos, who lives in San Joaquin, Calif. "I know that I bought myself freedom; I bought my family a good future and happiness that is immeasurable."

7. Invest in financial security

There was one contributor who declined to give her real name, but I would be remiss if I didn't include her smart happiness investment -- in her own long-term financial security.

By taking profits from the sale of her house in 2005, she was able to make a 45% down payment on a condo last year, which slashed her housing costs.

Even better, by lowering her overhead she has been able to redouble her savings efforts, maxing out her 401(k) and Roth IRA contributions, and socking away $20,000 in an emergency fund.

Some might argue that she would have been better off making a lower down payment and investing the difference, but sometimes the right thing to do is doing what feels right to you.

The Happiness Challenge continues

What I like about that last story is that it highlights the point of this Happiness Challenge.

It's so easy to drift through life, thinking of money as a merely financial matter -- and happiness as an emotional one. What these stories demonstrate is that the two are connected, that how you spend can change your life for the better.

In the coming weeks, on the Women in Red message board, I encourage you to invest more in your own happiness in order to help me answer the following question, which I wrote about in a recent column, "Invest in your own happiness."

Aside from the obvious emotional impact of putting your money where your happiness lies, is there a financial benefit, as well, when you spend less on stuff and more on life?

Published July 25, 2007

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