The average pay for an emergency physician is over $300,000 per year. Most people recognize that they need professional advice on how to save and invest that level of income. When it comes to spending, most people rely on their intuitions. Happy Money: The Science of Happier Spending by Elizabeth Dunn and Michael Norton uses research in behavioral science to explain how money can buy happiness. Dunn and Norton discuss five core principles to happier spending:
- Buy Experiences – research shows that buying experiences provide more happiness than buying material goods.
- Make It a Treat – knowing you can’t have access to something all the time may help you appreciate it more when you do.
- Buy Time – take busywork off your plate so you can spend more time with friends and family.
- Pay Now, Consume Later – delaying consumption gives you time to look forward to and think happy thoughts about your purchase (think planning for a vacation).
- Invest in Others – the more generous we are towards others, the happier we are (book recommendation: The Paradox of Generosity).
As an ER doctor, you’ve worked extremely hard to get where you are today. You earn a well deserved high income. Get the most out of your income and years of hard work by following the principles of happier spending.