How to Buy Happiness (Part 2)

In Part One, I explained how buying experiences rather than material goods promotes happiness.

Well, get ready for another bombshell. If you really want to buy happiness, spend what little money you have on other people.

Yep, that's right. It's scientifically proven that when people spend their money on others, it brings more joy than when they spend it on themselves.

A study conducted in 2013 is one of the most illustrative examples of this. The experimenters gave participants either $5 or $20 and directed some of the participants to spend it on themselves and other participants to spend it on someone else by the end of the day. Those who spent the money on others reported increased happiness while those who spent it on themselves experienced no change in their mood. Surprisingly, the amount of money didn't even matter. So even those who spent $20 on themselves did not experience the same boost in happiness that those who spent $5 on others.

This sentiment has been proven again and again. For example, people who give more of their annual bonus to charity or others report a higher degree of happiness than people who spend it on themselves.

So why does this happen?

People are social beings. Spending money on others promotes relationships and hence increases happiness. Spending money on others also improves our perception of ourselves. Ie, by viewing ourselves as altruistic, generous individuals we think more highly of ourselves. Third, when challenged to spend money on someone else, it usually forces people out of their routine schedule, bringing excitement into an otherwise monotonous day.

I had the opportunity to put this into practice a few weeks ago. When a customer gave me a $20 tip at work, I immediately thought about what I would spend it on...a new scarf, a fancy lunch, etc. But then I remembered this research and I resolved to find a way to spend it on others. Since my supportive coworkers were partially the reason I received the tip, I chose to spend it on them. I racked my brain for the best way to use it and eventually settled on purchasing a Groupon deal at a local bakery for $40 worth of pie for $20. The following day, I made a trip out to the bakery, picked out a few pies and delivered them to my coworkers as a surprise.

It was even more satisfying than I imagined to see my coworkers faces light up as they indulged in goodies I had bought for them.

So the next time you feel down in the dumps resist the urge to splurge on yourself. Instead, try buying something small for your mother, or sister, or best friend...or even the homeless guy on your block. Your wallet and heart will thank you!

How to Buy Happiness (Part 1)

Part of being smart about money is not just knowing how to save, but also how to spend. After all, money is meant to be spent. But for someone like myself who has such a small discretionary income, spending money is difficult for me so I'm intent on deriving the utmost pleasure from my purchases. In the first installment this two part series I'll share two ways in which I've found that money can in fact, buy happiness.

How? 

Spend your money on experiences not material items.

Why?

The Anticipation- Studies show that the mere anticipation of going on a trip, seeing a concert, or enjoying a good meal boosts people's level of happiness.

Eliminate Comparisons- Every new product on the market (phones, computers, cars, even shoes) are quickly replaced by a newer model. The worth of your purchase is directly correlated to the "newness" of the product and your happiness inevitably decreases as the novelty wears off and others get a newer version of whatever you've got. The same can't be said for the memories you make while taking a painting class or visiting a new city.

Shared Experiences- It's human nature to feel happy while surrounded by the people you love.  And since most experiences involve other people, it's no surprise that more happiness is derived from purchasing an experience rather than material item.

Over the past year, I've challenged myself to spend less on material goods and more on experiences. For a clotheshorse like myself, it's been a bit of a struggle. Last Christmas instead of asking for a gift from my younger brother, I requested he use the money he would have spent on a present to buy a train ticket to visit me in New York. It's hard for me to think of a material good of the same value (about $30) that would have brought me more enjoyment than hanging out with my bro for the day.

Stay tuned for part two where I'll reveal another way that money can buy happiness ;)

An Economist's Tips on Finding Good, Cheap Restaurants

Tyler Cowen is the not the first person I would think to consult about finding a great restaurant. He's  a professor of economics at George Mason University and author of New York Times best-selling e-book The Great Stagnation as well as writer of critically-acclaimed economics blog marginalrevolution.com. But his genuine love for food combined with his background in economics have made him an unlikely expert on the subject. He recently authored An Economist Gets Lunch: New Rules for Everyday Foodies which covers everything from how food in America became so bland and mass-produced (he blames prohibition, strict immigration laws, and kids!) to why Mexican food tastes different in Mexico and the US. His insights into how supply and demand, cross-subsidies, and technological advances influence food is fascinating. I picked up the book at my local New York Public Library to educate myself on the economics that drive food.
My favorite chapter by far was "The Rules for Finding a Good Place to Eat" which offers practical tips for finding good, cheap restaurants. Here are some highlights:

1. Eat at a restaurant on a side street: Restaurant owners, like the rest of us, have to pay rent. Rent along the long avenues, where there is heavy foot traffic compared to side streets is exorbitantly more expensive than on side streets. And that cost is factored into the price of each meal. A restaurant located on 5th Avenue and one just around the corner on say, 50th Street may have the same quality food but the one on 5th Avenue will have to priced their dish higher to accommodate the higher rent. Plus, chances are that if a restaurant is surviving on a side street without the business of the multitude of tourists who eat at places on main streets, it is probably pretty good!

How to Keep Your Tab Small When Dining with Friends

Let's be honest, having a social life and being on a budget is really hard sometimes. It seems like every time I hang out with my friends I end up spending money, especially on dining out. It's a tough situation because I don't want to miss out on spending time with my friends but I also know that I only have so much disposable income to spend on eating out.  When there's a get together at a restaurant that's a little out of my price range or if I've already spent the bulk of my "going out" money, I follow a few simple tricks to keep my dinner bill small so I don't have to miss out on the fun.

Enjoying a low-cost meal with friends...notice the bowl of soup!

1. Stick with water- That Sprite or Coke just tacks on an extra $2 to the price of your meal. You could buy a whole liter of the stuff for the same price!

2. Order an appetizer as your entree- Appetizers are almost always less expensive than entrees. Look for ones that are meant to be shared by the table like calamari or a pizzetta. You'll get an ample amount of food without breaking the bank.

or 

3. Order the soup!- I am a huge fan of ordering soup as my entree. Substantially cheaper than an entree, most restaurants feature a soup of the day that usually come in a hearty portion with a side of bread. 

4. Opt for dessert elsewhere- Yes, that cheesecake looks amazing, but is it really worth $5 dollars? Probably not. If I really need a sugar fix after dining out, I buy a candy bar on my way home. It's a much cheaper way to satisfy my sweet tooth.

There you have it, by following these tips you can enjoy the time you're spending with friends instead of worrying about how much it's costing you. And remember, don't over-restrict yourself. If you're dying to try a signature big-ticket dish at a new restaurant or heard rave reviews about a dessert on the menu, go for it!  Use these tips for those times when the food is less of a priority than the people you're with. 

Penniless Recipe: Leftover Taco Casserole

My roommate and I hosted taco night at our apartment for a few of our friends last week. Needless to say, we had quite a bit of left overs. I've been slowly picking at them for the past few days but I knew I would have to throw a lot of the ingredients out if it didn't get eaten soon. So I made a taco leftover casserole! Casseroles are a great (frugal) way to use up leftovers. Even if you don't eat the whole thing, you can always freeze individual portions and then stick them in the microwave for a quick meal.

My "taco leftover" casserole (which can serve 2) consisted of:

• 2 soft corn taco shells
• 1 cup of mexican rice
• 1/2 cup of frozen peppers (I defrosted them in the microwave before adding them to the casserole)
• 1/2 cup of canned corn
• 1/2 cup cheddar cheese
• Several tablespoons of salsa
• Tortilla chip crumbs (probably about 2 chips worth)

I greased my casserole dish and laid down the first taco shell. Then I layered on the rice, salsa, peppers, corn, and cheese. I laid down my second taco shell and did the same. Then I sprinkled the top with the tortilla chip crumbs for an extra crunch. I baked it at 400 degrees for about 15 minutes.

The resulting casserole was a warm, cheesy, spicy delicacy. And I managed to use up a lot of the leftovers. I still have probably 10 corn tortillas. I'm thinking about baking them into tortilla chips...but I'll save that for another post.

Free Pies Please!

Australian comfort food pioneer Pie Face just opened a new location in Murray Hill and to celebrate, they're giving away free mini pies. They were offering them today from 12-2 and 6-8 and I stopped by for a mini chicken and mushroom pie. It was the perfect combination of flaky buttery crust and hot, gooey insides. They'll be celebrating some more this week. Stop by tomorrow (September 19th) between 8 and 9 AM for a free coffee or on Friday night between 1:30 and 3:30 AM for a mini pie. They'd make the perfect after-drink snack! They're located at 507 3rd Avenue between 33rd and 34th St.

Also, I found a link to the email club on their website which promises more freebies so guess whose signing up?

Free Dessert at Edible Arrangements

Pineapple dipped in chocolate? Yes, please. For free? Hold this girl back!

Now through Sunday September 23rd, Edible Arrangements is offering a voucher for a free "Lovely Cupcake Pineapple Pop." Simply print out the coupon, fill out your personal info, and bring it to a store. There are locations in Brooklyn, the East Village, Midtown West, and the Upper East and West Side. I stopped by their location on St. Mark's Place to pick up mine. What a perfect (free) way to end the night. Bon Appetit!

Cheap DIY- Key Decoration

Since moving into my apartment last week, I've been struggling to differentiate between my building and apartment key. But I refuse to buy those overpriced "key shirts." Still, I need a way to tell my almost identical keys apart before I strip them down from using them in the wrong locks. So, I got creative. Using nail polish, I painted the heads of the keys. I also painted my mailbox key black to match. And now I have a cohesive set of keys that look cute without spending a dime. 

I took these photos a few days after painting them. As you can see they're already a little dinged up. I think I'll touch them up and then paint a layer of clear polish for extra protection. 

Yay for cute looking keys I can tell apart!

Cheap DIY- Jewelry Display

When you're tight on space and money, it's important to think outside of the box. As I decorate my New York City apartment, I'm constantly brainstorming ways to use what I already have, even if that means for a purpose not originally intended.  That's why I transformed my cork board into an earring display and coat rack into a necklace hanger.

Just add sewing pins and you're done! I love that I can add postcards and photo booth strips to the cork board to serve as a back drop for my earrings.

By mixing the metals, lengths, and price points of the necklaces, I created an eclectic-cool vignette. Not to mention, it's super easy to grab a necklace and go. No need to clasp and unclasp like when they're on a rod.