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Laura Rowley Money & Happiness

Laura Rowley, Money & Happiness

Hard Times Got You Down? Get Happy -- or Happier Friends

by Laura Rowley

Good (162 Ratings)
2.9135806/5
Posted on Wednesday, December 10, 2008, 12:00AM

If you think misery loves company, think again. A new study published in the British Medical Journal suggests that the truth is closer to another cliche -- smile and the world smiles with you.

The Probability of Happiness

The study by researchers at Harvard University and the University of California San Diego found that happiness is contagious: A friend who lives within a mile and becomes happy increases the probability that you'll become happy by 25 percent; a next-door neighbor's joy raises the probability by 34 percent; and a gleeful spouse who lives with you ups the probability by 8 percent.

"What our work shows is an emotional stampede, or herd-like behavior in emotions, which is dependent on the structure of network," says Nicholas Christakis, a physician and professor of sociology at Harvard. "Whether you are happy depends on those two or three degrees beyond your social horizon."

Christakis and co-author James Fowler examined a group of people in Framingham, Mass., whom researchers have tracked -- along with their descendants and friends -- since the 1940s. They examined 12,000 people who were interviewed over 30 years, who had named relatives and friends in their interviews, and regularly reported on their well being.

Proximity Is Key

They found extended social ties made an impact on a participant's contentment: An individual was 15 percent more likely to become happy if his friend was happy; 10 percent more likely if that friend's friend is happy; and almost 6 percent more likely if the friend's friend's friend is happy. Moreover, happiness spread a bit more strongly and more consistently than unhappiness; the authors suggest that from an evolutionary perspective, happy groups are more likely to cooperate in survival.

The study suggests that the spread of happiness depends more on proximity and frequent social contact than deep social connections, and that gender may play a role (happiness spreads "more significantly" through same-sex friends than opposite-sex relationships). For example, the research showed the happiness of a far-away sibling had no significant effect, while the happiness boost from a friend who lives within a mile is 25 percent.

If I apply this theory to my own life, the happiness of my neighbor Jen, with whom I share the ups and downs of parenting and a mutual love of dogs, should affect my well being more than the emotional state of my sister Mary in Iowa, with whom I share everything. Moreover, Jen's happiness should boost my mood significantly more than my husband's (which is so implausible I have to wonder if something is rotten in Framingham, at least on the marital front).

Emotional Contagions

"We find there's a tremendous decay with distance," says Christakis. "You'll be happier if your next-door neighbor is happy, but not one two houses over; it's face to face or frequent contact. If you're like most people, you'll instinctively smile back if I smile at you. People will adopt the mood of other people they are with."

Oddly, the study found no emotional contagion whatsoever in a place where we get the most face-to-face contact: the office. Almost 40 percent of participants had at least one coworker who also participated in study. "The social context may moderate the flow of happiness from one person to another," the authors write.

But Stanford University Professor Robert Sutton, co-director of the Center for Work, Technology and Organization, says mood contagion in the workplace is well documented, and the result may have been a methodological issue: Just because coworkers share the same employer doesn't mean they work in the same office or on the same shift. (Participants weren't specifically asked to name coworkers.)

"If you look at the basis of lots of organizational cultures -- especially in workgroups -- people will feel the same," says Sutton. "Emotions are contagious. People who have more control over your life and are higher status are the ones who often have the strongest effect."

Happy Is as Happy Does

Fowler, an associate professor of political science at U.C. San Diego, suggests a little schadenfreude may be at work. "We think the workplace offers an opportunity for collaboration but also competition," he says. "Prizes given out in workplaces can't be given to everyone -- someone's raise might mean another is being passed over for a raise. In a competitive environment you're genuinely affected by that person's happiness -- it actually makes you a little less happy."

How is happiness spread through social networks? "Happy people might share their good fortune -- for example, by being pragmatically helpful or financially generous to others; or change their behavior toward others -- for example, by being nicer or less hostile; or merely exude an emotion that is genuinely contagious," the authors write. "Psychoneuroimmunological mechanisms are also conceivable, whereby being surrounded by happy individuals has beneficial biological effects."

The study also underscores what I suspected in high school -- popular kids do have more fun. People in the center of a social network, surrounded by many happy people, are more likely than others to become happy in the future. While this finding would seem to provide fertile marketing material for country clubs looking to grow their ranks, the study found it actually matters if the other people like you as much as you like them.

With Friends Like These...

Here's how they figured it out: Research participants listed their friends. A number of these individuals also happened to be part of the study, and sometimes listed the friend who had named them. When a member of that mutual pair became happy, it increased the probability of their friend's joy increasing by a whopping 63 percent. By contrast, the likelihood of a boost in happiness by an "ego-perceived friend" -- the guy you golf with at the country club who you named but who didn't have you on his list -- had only a 12 percent effect.

Finally, the hedonic treadmill -- the phenomenon in which we adapt to a new car or fancy bling over time, and it no longer gives us the same pleasure -- shows up in the interpersonal spread of happiness as well. Someone is 45 percent more likely to be happy if a mutual friend who was interviewed in the past half-year becomes happy. In contrast, the effect is only 35 percent for friends who were examined within the past year, and it declines and ceases to be significant at greater periods of time. In other words, when it comes to happiness and social networks, the bottom line seems to be: What have you done for my mood lately?

If your social network is neither large nor happy, there's good news. Fowler and Christakis found that the biggest factor in someone's happiness was their previous happiness. Individuals who were happy at one wave in the study were roughly three times more likely than unhappy people to be happy at the subsequent observation. A variety of studies -- including work by the late researcher David Lykken of 65 pairs of twins separated at birth and raised apart -- suggest people have a happiness set-point to which they tend to return.

Catch the Wave

Perhaps the best way to boost one's happiness in this depressing economic environment is to recognize that joy not an individual experience, but a property of groups of people.

"If you could choose to be the happiest person on a block or surrounded by happy people, choose the latter, because it tends over time to have make you more susceptible to happy waves that move through the network," says Fowler. He also advises people not to sever ties with their unhappy friends, because reducing your network reduces the potential to catch a subsequent wave of happiness. (Just don't have coffee with your miserable friend on a daily basis.)

Fowler says he's recently made a ritual of listening to his favorite song before he gets home from work: "The study says small things make a big difference. If I'm happy, I can affect my son, and my son's friends, and my son's friends' mother," he explains. "Hundreds of people are potentially affected by this small thing I've done for myself. When we're facing a job loss or the death of a loved one and life is overwhelming, it seems like little things don't matter -- but the study says they do."

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109 Comments

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  • Yahoo! Finance User - Thursday, December 18, 2008, 9:36AM ET  Report Abuse

    • Overall: 5/5

    I am grateful for my friends, my home, my family, my pets, my job. I am grateful for holding hands and gazing into the eyes of a loved one. I am grateful for internet access. I am grateful for all the ways in which I've learned to CHOOSE to find what is good and joyous even though it may be a less popular pasttime than kvetching. Turn off the news. Go for a walk. Breathe. Appreciate what you DO have, rather than what you do not. Life itself is fleeting. Thank you for this article, it is about time! Thank you, financial crisis, for making the reality that we all have a choice in how we respond to it so very clear. And thank you, all you "drama queens", for being so verbal about your dissention to this article. You make the point so beautifully.

  • Yahoo! Finance User - Thursday, December 18, 2008, 9:10AM ET  Report Abuse

    • Overall: 4/5

    Interesting article, but it doesn't seem to have much to do with finance. Also, the idea of avoiding unhappy people is inherently selfish-- those people have a lot better chance at happiness if they have happy people in their lives, if the findings in the studies are correct.

  • Yahoo! Finance User - Thursday, December 18, 2008, 8:15AM ET  Report Abuse

    • Overall: 4/5

    Happiness/unhappiness is a matter of attitude. Life can bring us great gifts and also horrible punches. We can choose our attitude in managing these. It would be difficult to surpass the wisdom of Charles Swindol's advice : "The longer I live, the more I realize the impact of attitude on life. Attitude, to me, is more important than facts. It is more important than the past, than education, than money, than circumstances, than failures, than successes, than what other people think or say or do. It is more important than appearance, giftedness or skill. It will make or break a company... a church... a home. The remarkable thing is we have a choice every day regarding the attitude we will embrace for that day. We cannot change our past... we cannot change the fact that people will act in a certain way. We cannot change the inevitable. The only thing we can do is play on the one string we have, and that is our attitude... I am convinced that life is 10% what happens to me and 90% how I react to it. And so it is with you... we are in charge of our attitudes. "

  • Yahoo! Finance User - Wednesday, December 17, 2008, 8:23PM ET  Report Abuse

    • Overall: 5/5

    If there is one happy American left after emperor dubyas reign comes to an end the nation has a fighting chance.

  • Yahoo! Finance User - Wednesday, December 17, 2008, 1:13PM ET  Report Abuse

    • Overall: 1/5

    Sure Laura Rowley is happy by getting PAID to expound everyone elses ideas...The only reason ones neighbor is happy is because they are probably employed and buying your forclosed house...

  • Yahoo! Finance User - Wednesday, December 17, 2008, 12:38PM ET  Report Abuse

    • Overall: 1/5

    The FED should supply all U.S. citizens with a BILLY BASS, then we could all constantly listen to DON'T WORRY, BE HAPPY. No sane person can be happy with all the drek that is going on in the world.

  • Yahoo! Finance User - Wednesday, December 17, 2008, 11:00AM ET  Report Abuse

    • Overall: 1/5

    If people are making money then they are happy. If they have enough to pay bills and their mortgage then they are happy. Money does not buy happiness but it makes you happy when you dont have to worry if you have enough of it.

  • Yahoo! Finance User - Tuesday, December 16, 2008, 11:51AM ET  Report Abuse

    • Overall: 3/5

    This study would seem to suggest that happiness would eventually overwhelm unhappiness. I wonder, are people more happy now than they were a century ago.

  • Yahoo! Finance User - Tuesday, December 16, 2008, 9:16AM ET  Report Abuse

    • Overall: 4/5

    I'm glad someone actually got data to follow up on the saying that "happiness is contagious"

  • Yahoo! Finance User - Tuesday, December 16, 2008, 9:05AM ET  Report Abuse

    • Overall: 2/5

    Ms. Rowley is falling into the habit of rehashing press releases as a substitute for original work.

  • Yahoo! Finance User - Tuesday, December 16, 2008, 8:56AM ET  Report Abuse

    • Overall: 4/5

    I think I'm going to have a happier day.

  • Yahoo! Finance User - Monday, December 15, 2008, 10:44PM ET  Report Abuse

    • Overall: 2/5

    must be using the bipolar rating system here.

  • Yahoo! Finance User - Monday, December 15, 2008, 2:59PM ET  Report Abuse

    • Overall: 5/5

    Looks like all the negative people are angry and rated this 1 star instead of seeing if they could find some way to improve.

  • Yahoo! Finance User - Monday, December 15, 2008, 2:17PM ET  Report Abuse

    • Overall: 4/5

    Sorry so many people are so unhappy. Happy people are the ones that make all the money because their attitudes let them explore, take risks, and just try harder to make things work. That is why they're wealthy! If you hate your job, the only way to do it well is to be happy about it. Get it done and done well. Someone will notice and you will no longer have to do that stinking job anymore. You'll get to do another job that may be more rewarding. If that doesn't happen, because you are good at what you do, you will have more confidence to look for another job that will use your skills to the fullest. The point is, you're good at what you do because of your attitude that leads to more possibilities. Look, no one said being poor is a good thing. I know, being poor is scary and can take away happiness in a flash when a job is lost or someone gets sick. I've lived through this in my family. My father lost his job, my mother was sick, and there were four kids trying to get through school. But, my father was always happy. He kept working and trying to make things better till my mom healed and the kids received top notch college educations. His motto, "the money will keep coming." It may not be much, but it will keep coming if he kept working. Lo and behold, he ultimately is living happily. He watched his sick wife heal, and his kids and grand kids grow up. My dad will never know what material wealth really means. He took a job washing dishes for $5 an hour to get us through it all (1980 recession). When he was let go, he saved $.50 a day by not buying coffee and reading yesterday's newspaper. These were his two favorite things. Was he happy? Perhaps not, but we played chess and he made us lunch and dinner after school. He told me, that was one of his happiest time in his life.

  • Yahoo! Finance User - Monday, December 15, 2008, 12:57PM ET  Report Abuse

    • Overall: 5/5

    Money matters. But it's not the only thing in our lives. Thanks for reminding us of this. Now more than ever we need to remember that money allows us to support our family and loved ones. Not an end in and of itself.

  • Yahoo! Finance User - Saturday, December 13, 2008, 9:08PM ET  Report Abuse

    • Overall: 1/5

    Fire this woman.

  • Yahoo! Finance User - Saturday, December 13, 2008, 6:10PM ET  Report Abuse

    • Overall: 4/5

    Good grief. You people are hilarious! You sit around blaming everyone but yourselves. Guess what folks: if you took out a loan you couldn't pay back; if you got knocked up out of wedlock and can't afford to take care of your kids; if you bought a bigger car than you needed; if you filled your house with multiple tvs and never saved any money; you are part of the problem. That said, its time to move on. We're probably all going to feel some level of economic pain, some more than others. But this too shall pass, and hopefully we're all learning some valuable lessons regarding fiscal responsibility. Those bankers and politicians that anger you all so much? They wouldn't have been able to screw it up so much if it weren't for all the ordinary Americans joining in the party. We'll get through this and emerge as a stronger, wiser country. So try to smile and be happy. Being miserable about things you can no longer control won't do a thing to improve your situation. However, learning lessons and applying them to the future, while believing in the overal resiliency of the US will give you the strength to get out there and try to fix your own personal mess. C'mon folks, let's get this problem fixed and stop sitting around whining on Yahoo message boards. Good luck to all.

  • Yahoo! Finance User - Saturday, December 13, 2008, 1:57PM ET  Report Abuse

    • Overall: 4/5

    it is a good thing ,now to avoid negative people. and look for the positive in everything you do,you will then be welcomed by many as being a friend,and uplifting to others and yourself.

  • Yahoo! Finance User - Saturday, December 13, 2008, 11:15AM ET  Report Abuse

    • Overall: 1/5

    I thought I was happy until I read this article. Maybe I should dump all my friends and get new ones.

  • Yahoo! Finance User - Saturday, December 13, 2008, 9:09AM ET  Report Abuse

    • Overall: 3/5

    This article is easy to accept. It's the same theory as surrounding yourself with successful people or people with a positive attitude. Those traits or feelings rub off so to speak. If you hang around with negative people it works the same, you'll find your more critical of things in general. So it's no real surprise that if your associated with happy people, that feeling can rub off.

  • Yahoo! Finance User - Friday, December 12, 2008, 10:23PM ET  Report Abuse

    • Overall: 4/5

    People make their own happiness. It is certainly true if you are around negative people for long enough, you start to see things negative too. You don't need to be around happy people to be happy but I believe you are happier if you are. No one likes a party pooper.

  • Yahoo! Finance User - Friday, December 12, 2008, 8:58PM ET  Report Abuse

    • Overall: 5/5

    What she says is indeed factual and is a good point to concider for everyone reading. I think people that are unhappy about this credit problem or that they are so large in debt is because of themselves, and not America. Remember when you got your first job at whatever the minimum wage was? You probably told yourself that "wow, if I made $3.00 more, I would be rich." Now you probably make more money but why aren't you rich? Most likely it's because you have to pay a mortgage, a car payment, a credit card bill, etc. Fine. That is what you're susposed to do. But do you really need as big of a house? As expensive of a car? A credit card bill that is that high? I am happy. Yes, I have lost about $200,000 in the stock market. Yes, I have a house with a mortgage payment. Yes, I have a loan on my truck. Am I unhappy about what is happening in Wall Street or with this credit problem? No. The reason is because I do what I am susposed to do and what our grandparents did - spend within your means. I have always paid off my credit card bills because I always bought what I could afford. I never took out a home equity line of credit (HELOC) because I was told my house would increase so much I could afford it. Don't count your chickens before they hatch, as they used to say. It is always wise to have an emergency fund just in case the power bill is higher one month or someone in the household becomes unemployed. Am I worried about my retirement account loosing so much money or concerned that I will never be able to retire? No. I have my investments allocated as I am susposed to and did not allocate them meanwhile chasing performance. Also, I won't retire until I am 60 (or another 30 years) so I have time on my side for the market to recover. In summary, my point is this: people need to have the knowledge on knowing what they are getting into. People are smart enough to know that a motorcycle cannot be driven safely when it is snowing. Yet, we get adjustable rate mortgages predicated on our house inflating high in value. People are filing bankruptcy on their credit card bills because they can't afford the minimum payment. Well how did that payment get so high? Did the credit card company issue you a card with a $30,000 bill already attached. No. You went out and felt "you deserved, you earned, that's what I am working for," (insert response here) these expensive items. Fine, but don't blame the world that they are the reason why you are broke. Going back to my previous example of your first job. Most likey then you lived at home and most of the bills were taken care of. Then you moved out into an apartment and even though money was tight, you made it. Then you got your first real job and then you decided to buy a house. Yes money was tight but you made it. Then you got married and then the credit card bill became larger. Same income but now you have more debt. Now you start to pay the minimum amount on the credit card because you have no extra income. So if you spend within your means and don't overspend, then you will be happy with yourself.

  • Yahoo! Finance User - Friday, December 12, 2008, 7:44PM ET  Report Abuse

    • Overall: 1/5

    I'm happy! Top Ramen again for dinner? I'm darn happy!! Car broke down but we've no money to fix it. We're rootin tootin happy!!! Got fired, unemployment and healthcare ran out but I've got complications from diatbetes. I'M FREAKIN HAPPY DO YOU UNDERSTAND ME?@!@?@?@

  • Yahoo! Finance User - Friday, December 12, 2008, 3:28PM ET  Report Abuse

    • Overall: 1/5

    The peoples in black “the government” said No Money for automakers = Down John = down = they buy cheap stocks. Other day government said Yes, we have money for the automaker = Down John = high = they get for sale same stocks and make money. Again and again and again. Is the big more fake trick in the US history? Wall Street has owners now “government drives in black” The new era “World Order” just beginning

  • Yahoo! Finance User - Friday, December 12, 2008, 1:58PM ET  Report Abuse

    • Overall: 1/5

    Another study by a bunch of people who need to get a real job and do something more useful instead of trying to tell people how to run their lives. The world needs less studies and less polls.

  • Yahoo! Finance User - Friday, December 12, 2008, 1:00PM ET  Report Abuse

    • Overall: 3/5

    Great general information, but how does this help me accumulate and protect wealth?

  • Yahoo! Finance User - Friday, December 12, 2008, 12:24PM ET  Report Abuse

    • Overall: 2/5

    Interesting. But who cares, it is just another study. Happiness really is derived internally, although external events or people have some impact. I have seen the happiest people in some of the most unhappy situations, and vice versa. Some people just seem to prefer being unhappy, usually the same people that are always recounting the latest "poor me" story. Or how much they hate this or that story. All in all, I really have no idea why this article is on a finance site, since it has absolutely nothing to do with finance.

  • Yahoo! Finance User - Friday, December 12, 2008, 12:11PM ET  Report Abuse

    • Overall: 3/5

    If you think times are tough you have never traveled in other countries. Most other people in the world routinely live in conditions far worse than the poorest people here. If you become destitute you don't have to worry about starving, you can get food stamps. Likewise, Medicaid will take care of you when sick. Social Security provides some income when you are old and Medicare provides health care, you don't have to depend on the prosperity and willingness of relatives in old age for care even if you were a big spender and saved nothing. If you have little money there is subsidized housing. Even the "poor" often have multiple cars. In most of India, Asia, and Africa you would squat in a shack with no plumbing,a dirt floor, and you would worry constantly about getting enough to eat or even clean water to drink. You only have to go to interior Mexico to see how most of the world's hordes live. Even in Japan, whole families live in tiny apartments of 400 square feet or less and many workers cannot even afford to keep their families in the cities where they work, seeing them only occasionally. So if you live in the USA be happy for where you live instead of complaining because you can't afford a new car this year or maybe you have to sell that giant house you bought for status. And pray the current crop of U.S. politicians who seem to want to apologize for our higher standard of living and reduce ours to the level of the rest of the world are not successful.

  • Yahoo! Finance User - Friday, December 12, 2008, 11:51AM ET  Report Abuse

    • Overall: 1/5

    Ignorance is Bliss ... but at the end of the day you're still Ignorant.

  • Yahoo! Finance User - Friday, December 12, 2008, 11:37AM ET  Report Abuse

    • Overall: 2/5

    I had to check to see if perhaps I had Oprah's or Ellen's web site up by mistake. This article is proof positive that women have no place in big finance!

Showing comments 6-35 of 109<< PreviousNext >>
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