Buy That Latte - You'll Be Happier
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- Опубліковано 28 вер 2024
- Personal finance has been dunking on lattes for decades, insisting that it's "for your own good." But what if they're wrong? Let's talk about hedonic adaptation and how your latte might actually be making you happier than you think.
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If you would like to check out the study for yourself, you can check it out (for free!) at this link: scholar.harvard.edu/files/danielgilbert/files/if-money-doesnt-make-you-happy.nov-12-20101.pdf
the biggest realization i've had about personal finance in the past year (supported by this video content) is that money is frequently emotional. even the people who pride themselves on ascetic lifestyles of no daily indulgences treat it emotionally without realizing it. a combination of better money management + spending skills is how i now can savor spending money several times a month on a cafe outing, instead of endlessly challenging myself to save everything.
People got to stop saying "$5 on a latte"! I haven't been able to get a latte for $5 since 2019! But love the video, as always, thanks Sketchy!
Uh-oh, I think my Midwestern is showing 🙃
- Ben M 🤓
Go Midwest!@@YNABofficial
France: Lattes and avocados. My fourteen year old asked me the other day "what's the big deal with avocados, other than the climate impact and water scarcity? What's it got to do with finances?" Nothing much. They are more expensive, by weight, than tomatos. But on average less expensive, by weight, than most lettuces. I have yet to hear anyone arguing about excessive lettuce consumption of young people these days. Until they do, I ignore them.
As for coffee, I stick to my grandma's advice: "Drink coffee while you can. During WW2 we didn't have any, and it was awful."
In the US the complaining was more about avocado toast rather than avocados by themselves.
@@CharleneCTX same thing, no? Here sandwiches you buy are more expensive than home made ones, but I haven't seen a significant difference specifically for avocado ones. Except maybe the cheapest sandwich, which tends to be "jambon - Emmental" (ham and basic hard cheese). As soon as a sandwich has any kind of salad, it's all fairly similar in price. It's more the quality of meat that makes a difference.
I have an appointment with my 3 kids (ages 20, 19, and 14) every single Friday afternoon - we all get whatever drink we want from Starbucks. Does it add up $$? Yep. But it is also absolutely priceless!
💕💕💕
- Ben M 🤓
This is why I spend on my themepark passes so I can go every few weeks instead of once a year and its honestly not that much more in the long run to go more and man It make me happy.
We used to buy a family pass to one location each year. It's usually about the cost of 2.5 visits, but we were able to explore the zoo, museum, or theme parks very thoroughly with frequent and sometimes short visits.
@@dpstitches I’m a coaster nut and riding them is like therapy for me and I have two parks close by. I’ve also recently started tracking my benefits of the passes in YNAB to see when I start breaking even. Usually 3 visits
I buy a latte as a reward at the end of a walk. So for me, it's equivalent to a gym membership. It motivates me to get up and do something. It has also caused me to break my habit of driving to a coffee shop (unless I'm meeting a friend). If I'm going to be lazy, I can just make my coffee at home.
"So for me, it's equivalent to a gym membership."
Oh my goodness, I LOVE THAT IDEA SO MUCH. 😍
- Ben M 🎨
Thank you for debunking the myth that small indulgences are ruining your budget. My “latte” is a Chick-fil-A kids meal, and I trade the toy for an ice cream cone 🍦 because that makes me happy. 😊 We’ve used YNAB for 7 years, are debt free, and I just retired. My husband suggested that I cut back on my CFA habit now that I’m retired, and I smiled and said, “NOPE!” This small pleasure fits perfectly in our budget, and I enjoy the frequent experience for the food, the excellent customer service, and the friends I’ve made. It’s all about making wise and enjoyable choices, and then structuring one’s budget around those choices. ❤
can’t believe u brought up a “little treat” by name category because that’s exactly what my treat category is called!
This is why I spring for things like nice moisturizer that feels like an indulgence every time I put it on. I could get something for half (or less) of the price, but it bookends my day with a little bit of joy. :)
A dude at a co-working space inspired me when using the smaller cup in the kitchen to drink his coffee. He basically said the same thing. Same enjoyment, less consume coffee.
Today I'm enjoying a small espresso at home, and then drinking delicious tap water the rest of the day (I'm living northern Sweden). Making me truly enjoy that morning brew and then enjoying the mental and physical benefits of being hydrated.
I bought a box of pick n mix sweets and a couple of paperbacks I’ve had my eye on, today
ZERO regrets!
🙌
- Ben M 🎨
I bought a chocolate subscription and the 4 fancy bars last me all month. Just something nice at the end of the day. I love it.
Love it! I increasingly find way more satisfaction out of "less but better" purchases versus "more more more".
Also TIL chocolate subscriptions exist 👀
- Ben M 🎨
Okay, but you have to spill the beans on this chocolate subscription 👀👀
@-hibiscus I ship it in from Cocoa Runners in the UK. Even with the extra shipping fees it is cheaper and way better quality than the American subs. I had it when I lived there and I missed it so much, couldn't find anything as good so went back to it. Some of the chocolate is experimental but you really find odd flavors to enjoy and it changes your relationship with chocolate. Plus overall I eat less junk and candy bars because this chocolate is so intense and satisfying and interesting.
"Four fancy bars last me all month."
Wow. Teach me your ways. I could rule the world with that kind of self-control. 😂
🌻 Hannah
@@YNABofficial the chocolate is more intense so you need a lot less of it. Kindof like the same difference between whiskey and beer.
Loved the Bluey reference 🤗
No Canadian would ever discourage another Canadian from double-doubles. They're sacred!
I love these videos. I’m a two 6oz cookies type of person. 😂
England: couldn't name a single UK financial guru. Only ones I can think of are from USA.
Good content!!!!
Canada : Tim Horton’s coffee 🇨🇦
This is about pleasure. Not happiness.
Can we get the link to the study? ❤
UA-cam makes these links insufferably long, but if you google "If money doesn't make you happy harvard study", the paper should be your first result. It's free to read!
- Ben M 🎨
Ben, can your comment be pinned? Would make it easier for all of the eventual duplicate questions about the link. Awesome vid and can't wait to read the study.
Done!
- Ben M 🤓
I measure my cookies in grams!
Canadians don’t have accents (in most Provinces). We sound like you. Just saying. 😊
Those red categories have me stressed out 😰
Gotta stay edgy for the algorithm 😎
- Ben M 🎨
On top of "who's measuring cookies in ounces?", I want to ask who's eating 12 oz cookies. I mean, isn't 6 ounces a monster of a cookie to begin with? 🤨
See, I don't even know how big that is. Is that big? Is that small? I DON'T KNOW. The imperial system is confusing!
- Ben M 🤓
I dunno. I don't see 340 grams as particularly intuitive either.
... Now if they measured them in graham CRACKERS (0.5 ounces each), we'd be getting somewhere.
So to rephrase:
I want to ask who's eating 24-graham cracker cookies. I mean, isn't 12 graham crackers a monster of a cookie to begin with? 🤨
- Ben C
@@YNABofficial
I stopped drinking lattes because mochas taste better.
It's "that first sip feeling" on the Starbucks cup. I actually get a small drink instead of a large one for that very reason. I don't really get any more pleasure from a 16 oz latte than a 12 oz one, so it makes sense to cut back on cost and calories per drink.
The budget is tight right now so I'm all about more efficient ways to satisfy my "less practical" needs. I'm definitely going to be thinking about this more.
Yeah, that's a tip I meant to mention but apparently left out of the script: One of the key insights here is that the emphasis on LITTLE is actually pretty important.
Because of adaptation, a 12 oz latte is actually a substantially better bang for your buck than a grande or venti. Not only do you save money, but you're getting more happiness for your buck!
- Ben M 🎨
Small treats are best when they are actually 'treats'. A latte every day isn't as enjoyable as a latte every few days.
Missing something makes the heart grow fonder.
Good point! Elizabeth Dunn, one of the researchers in this study, has a whole chapter about that principle in her book with Michael Norton "Happy Money".
- Ben M 🎨
Great video! I also loved all the financial studies and reports you referenced. Made me realize to take a step back and not rush to pay off a 0% credit card balance by the end of the year b/c I have until April 2025 to do it and then I can put more money in my savings for vacations and create memories instead.
Always look forward to your videos! I was patting myself on the back when you got to the two 6 ounce cookies. I figured that out years ago. Especially with desserts, but also taking home food from a restaurant. "Will I enjoy this more tomorrow than I will right now?" And 9 times out of 10, the answer is yes. Bonus, it's better for my health, too 😉
The latte thing I only just discovered a few months ago. I get more happiness from a latte a week than one meal out per month.
Thank you! 😊
I like how you used comparison to your advantage. It's so easy to critique little indulgences, but I love the idea of tinkering with our regular happy spends and asking, "Hmmm... what would it look like if I did this instead?"
One example for me: I bought my wife an espresso machine for Christmas. Did NOT do this as a money saving thing at all. For my wife (currently pregnant and managing a 2-year-old, bless her), making her own latte is a lot easier than running out to get one from a shop.
She loves coffee shops as a place to hang with friends, but when she mostly just wants to enjoy a coffee, she actually prefers the ritual and sense of accomplishment from making it herself. The savings is totally secondary (but a welcome perk! 😉)
- Ben M 🎨
Canada: finance gurus hate Starbucks and upgrading your iPhone often 🙂
This just validates the absolute guilt and shame I feel every time I hear from a certain well-known guru whose name rhymes with "fave". If I'm paying my bills and working towards responsible goals...why can't I eat out and go on vacation?
Hmmm. I’m making myself a mug of tea right now. I definitely self-sacrifice for future, and notice the deprivation mindset. Something to make some small changes on!
British - it's lattes here too, constantly referenced by boomer politicians as what's wrong with younger people
Who says that? Serious question, who?
Can you reference the study? Thanks!
I tried to get the citation for you, but it's behind a paywall.
There's a non pay wall copy available on Harvard's open access repository. I can't post a link but found it by googling the title and it was the first result. It's by EW Dunn and dated 2011 if that helps 😎
Thank you for the helpful information!
Avocado toast is the main one in the UK press.
When I lived in London I used to buy lunch every day and could have saved a tonne of extra money if I’d prepped food instead but it genuinely made my day better to go for a wander with a friend and have a bit more variety in my food so I kept it in my budget
Loved this video! Will you drop a link to that study? Curious to check out the other 7 tips!
If you google "If money doesn't make you happy harvard study", you'll find the open access paper as the first result!
- Ben M 🎨
scholar.harvard.edu/files/danielgilbert/files/if-money-doesnt-make-you-happy.nov-12-20101.pdf
😊
yeah, it's still lattes here in canada. but i think it's shorthand for anything more than the cheapest thing that gets "the job" done, like black coffee
Sounds like really interesting research!
There's lots more like it in Elizabeth Dunn and Michael Norton's book "Happy Money: The Science of Happier Spending." Also some really interesting stuff about money in "The Myths of Happiness" by Sonja Lyubomirsky.
- Ben M 🎨
This is fascinating. Wonderful. Inspirational and well researched. I have cut back on latte's and felt so sad. It enhances a feeling of poverty and lack vs. giving the sense of financial freedom. Thank you.
I say buy whatever you want to, it's your money to do with whatever you want to.
BUT......if you do keep spending your money on things you *want* more than *need* then never ever complain you are not meeting your long-term financial goals.
Don't allow instant gratification to creep in around the edges, you have to set limits.
The "I deserve this now" mentality can easily become addictive and lead to rationalizing wasting money on frivolities.
And make your own damn lattes, it's easy af.
Another brilliant video from you, Ben! Point well made. Thank you
Still a starbucks in the uk.
Lactose-free, easy for me!!!
Promo-SM
So... I don't drink coffee. Now what?
Start drinking tea. Much better than bean water 😂
Whatever rocks your boat, really. Unless it's harmful to your health. In which case, moderation is a good idea. For example, I love champagne. But that doesn't mean I would drink it every day even if my budget was up to it. But tea, coffee, freshly squeezed orange juice... Sure.
Use your imagination, Lisa.
My first instinct is... buy a puppy?
Technically a little treat, if you're using the right scale 😉
- Ben M 🎨
Yes.