Time, money, and happiness

•Time and money are precious resources that — managed well — can increase happiness.•Focusing on time leads to greater happiness than focusing on money.•Spending time and money on others versus on oneself increases happiness.•Spending money to acquire experiences versus possessions increases happiness.•Spending time acquiring ordinary and extraordinary experiences increases happiness.

We highlight recent research examining how people should manage their most precious resources — time and money — to maximize their happiness. Contrary to people's intuitions, happiness may be less contingent on the sheer amount of each resource available and more on how people both think about and choose to spend them. Overall, focusing on time leads to greater happiness than focusing on money. Moreover, people enjoy greater happiness from spending money on others rather than themselves and from acquiring experiences instead of possessions. Similarly, people enjoy greater happiness from spending time on or with others and from acquiring experiences — both extraordinary and ordinary.