The most common money management tips that experts give to people in King County with tax or financial difficulties involve saving, budgeting, and planning.
But there’s another money habit that never makes those lists of money management tips, and it’s worth sharing, because it can have a profound effect on your attitude toward money and life in general.
So I’m here to encourage you to add this tip to your money and debt management strategies this year: giving. Yes, giving.
A study by researchers at the University of British Columbia and Harvard University has shown something that I hope will inspire you: spending money on others can actually make us feel happier. That’s a different piece of advice than you might have been expecting.
Now, before you think, “But I barely have enough for my own needs, how can I think about spending on others?” let’s consider how it can be possible, even on a tight budget.
The researchers looked into the lives of 630 Americans, asking them about their happiness, income, and how they spend their money, including their bills, personal treats, gifts for others, and charitable donations. They also looked at people who got bonuses from work, ranging from 3K to 8K, to see if there was a link between how they spent their bonus and their happiness.
What they found was that it wasn’t about the amount of money people had or received that determined their happiness. Instead, it was about how they used their money. Those who chose to spend more on others or donate to charity felt happier than those who didn’t.
In another part of their research, participants were given a small amount of money (5 dollars or 20 dollars) and were asked to spend it by the end of the day. Some were told to spend it on themselves, and others on someone else. The people who used the money for someone else ended up feeling better at the end of the day than those who spent it on themselves, regardless of the amount they spent.
This shows us something very powerful: the act of giving, even in small ways, can lift our spirits and bring us a sense of joy, even when we’re facing financial challenges — even the tax kind.
The beauty of this finding is that the amount doesn’t have to be big. It’s the act of giving itself that counts. It could be as simple as buying a coffee for a friend, donating a couple of dollars to a cause you care about, or even just buying a small gift for a coworker.
My takeaway? A small gesture of kindness towards someone else could be a step toward feeling a bit happier yourself. It’s not about ignoring your tax problems — that’s what I’m here to help you with practically. But sometimes, a paradigm shift and baby steps in a new direction can make just as big of a difference in the long-term.
So let’s add that to our list of money management tips to implement this year.
But I’m curious — what will you do with this information? I’d love to hear…
To your happiness,
Christopher Chapman