Happiness

Some earlier research has argued that income comparison makes you happier (if you have more, that is). This, however, is a result of the focus illusion (pdf), where you think that most important thing in your life is the think you are thinking about at the time. Turns out, it probably isn't money, its how you spend your time. And don't think about money and compare. That makes you miserly and miserable.

When someone reflects on how more income would change subjective well-being, they are probably tempted to think about spending more time in leisurely pursuits such as watching a large-screen plasma TV or playing golf, but in reality they should think of spending a lot more time working and commuting and a lot less time engaged in passive leisure (and perhaps a bit more golf). By itself, this shift in time use is unlikely to lead to much increase in experienced happiness, although it could increase tension and one’s sense of accomplishment and satisfaction.

Despite the weak relationship between income and global life satisfaction or experienced happiness, many people are highly motivated to increase their income. In some cases, this focusing illusion may lead to a misallocation of time, from accepting lengthy commutes (which
are among the worst moments of the day) to sacrificing time spent socializing (which are among the best moments of the day). An emphasis on the role of attention helps to explain both why many people seek high income – because they over predict the increase in happiness due to the focusing illusion and because changes in relative income are associated with strong emotional responses – and why the long-term effects of these changes are relatively small -- because attention eventually shifts to less novel aspects of daily life.

So, spend less time in commute, more time in active leisure, and meditate for 30 minutes a day. This way you train your attention to only focus on things that make you happy :)