Pleasure-Purpose-Purchase, or Should I Buy This?

7-4-Y

“[H]appiness is experiences of pleasure and purpose over time.”
– Paul Dolan

Now that we know happiness can be quantified in numbers – (Read this first.) – I suddenly realized this was a massive breakthrough. In our last post, we applied a pleasure and purpose metric to activities to figure out how happy they were making us, but we missed the obvious: What if we applied the same pleasure and purpose metric to purchases? We’re a personal finance blog after all. It’d be stupid to not talk about money.

Anyway, I adopted this scoring system for any purchase over $10 I was considering. The first number is the pleasure I can expect from my purchase rated from 1-10, the second number is its anticipated purposefulness from 1-10, and the third bit is whether or not I bought it. Score anything you’ve recently wanted to buy accordingly! Recent pleasure-purpose-purchase scores for me have been stuff like:

Allergy medication: 4-9-Y
4-pack of rare beer: 7-5-Y
New Fitbit wristband: 6-2-N
All-you-can-eat sushi dinner: 7-4-Y
New audiobook: 6-3-N

In order for me to say yes to a purchase, my pleasure and purpose scores must add up to at least 10 out of 20. Otherwise, I put it back on the shelf. (For you, your score may be different. You might have something be 2-4-Y after mentally justifying it, and you might even set your purchase threshold at 8 out of 20 or lower.) Even now, this is stopping me from making purchases that won’t make me significantly happier. Look at what else I’ve been saying no to:

New 4K 55” TV: 6-2-N ($400)
Profoto A1 camera flash: 3-6-N ($1,000)
6-pack of craft beer I’ve tried before: 5-3-N ($15)
Food mill: 5-4-N ($45)

These are all things I want, but after scoring them all, I realized the money was better saved and invested. Besides, I already had a 50” TV and old flashes, which is why I ranked purpose relatively low. Let’s say I would’ve bought all that stuff this month were it not for the P-P-P score. I would’ve spent $1,460. Invested using the 10X rule, that’d be $14,600 by retirement in one month alone!

Can applying this scoring system to your discretionary spending save you tens of thousands of dollars? I think it will. Think about this and score your next few purchases, then comment below with your findings.

In the meantime, I’m gonna have some of that 7-5-Y beer. Mmm, unnecessary luxury…

What Happens When You Quantify Happiness?

style icon-3

Paul Dolan’s “Happiness by Design” became so important to me in the past month that I now own multiple copies for reference purposes. The audiobook is for commutes. The paper copy helps me gather quotes for articles, like on this blog. Though this is probably excessive, I think anyone looking to improve their life should read this book. As someone who was quite happy already, I didn’t think I could game my way into being even happier. Somehow, this book did it. Pick it up from your local library!

Here’s an all-too-quick summary you can take a look at right now. If you’re pressed for time, simply click here and save the image. This is a DRM worksheet – it means ‘Day Reconstruction Method’ – and we’ll be referring back to this later. This will allow you to quantify and prioritize your happiness as easily as you do your budget. Here’s why I use it daily.

*****

Two weeks ago, I was on vacation. For five days, I was in Seattle with friends and I was destroying my budget. It turns out $300 USD, unmonitored, just kind of goes up in smoke if I focus only on “having a good time”. Sometime around Day 3, I started questioning what I was doing. Why was I somehow miserable on vacation? I’d worked seven days straight to have five days off in a row, so I should be enjoying myself, right? Why was focusing on pleasure for once giving me so much anxiety? Without a clear answer, I spent the rest of my trip in a listless limbo, and found myself excited to go back to work. On my first day back, I was energized to be productive again, but not because I was relaxed. I was relieved. The vacation was actually a bad experience for me. What gives?

In his book, Dolan says, “To be truly happy, then, you need to feel both pleasure and purpose.” You need both, and ideally, a balance. He talks about a “pleasure-purpose principle­”. If you focus too much on either side and neglect the other, you end up unfulfilled. For me, two days of pursuing only pleasure and neglecting purpose was enough to make me go wonky, but now I know. If I’d only had the DRM worksheet, I could’ve saved myself a lot of grief.

Summing up the trip as a whole gives me some clues as to why I wasn’t happy. My main activities included “drinking with friends”, “attending panels at a convention”, “eating at restaurants”, “hiking”, etc.

Drinking with friends – [Pleasure: 6, Purpose: 5]
Attending panels – [Pleasure: 4, Purpose: 3]
Eating at restaurants – [Pleasure: 7, Purpose: 4]
Hiking – [Pleasure: 5, Purpose: 4]
THE WHOLE VACATION – [Pleasure: 5, Purpose: 4]

In this case, though my activities were mostly midrange in pleasure, they were entirely lacking in purpose, especially because I was spending significant amounts of money doing things I could’ve done with a staycation. Now, let’s look at a typical workday for me.

Commuting – [Pleasure: 5, Purpose: 4]
Working at the liquor store – [Pleasure: 5, Purpose: 9]
Having good food and drink at home – [Pleasure: 6, Purpose: 5]
Watching some TV – [Pleasure: 6, Purpose: 4]
Going for a walk – [Pleasure: 7, Purpose: 6]
THE WHOLE WORKDAY – [Pleasure: 6, Purpose: 7]

This isn’t an exact science, but if you’re evaluating your own pleasure and purpose honestly, your DRM will allow you to design your own happiness. Notice your daily visits with Mom are a bit like [Pleasure: 4, Purpose: 3], but playing with your kid is like [Pleasure: 7, Purpose: 10]? Well, you have data now, so make a choice. Do you find TV-watching to be like [Pleasure: 5, Purpose: 2], but reading a great novel to be [Pleasure: 6, Purpose: 8]? Make a choice!

The point is to think objectively about what makes you happy. Broken down into just pleasure and purpose, this is as simple as it gets.

I somehow learned I love and enjoy my day-to-day life more than vacations. I can’t imagine anything happier than that! Can the DRM help you hack happiness? I challenge you to find out.

Think of it as [Pleasure: 3, Purpose: 10]?