Unlocking Lasting Well-Being Through Science-Backed Practices and Financial Security
International Day of Happiness 2025: Financial Wellness and the Science of Joy
The International Day of Happiness 2025 theme “Caring and Sharing” perfectly encapsulates the dual nature of true well-being—emotional fulfillment and financial security create a powerful foundation for happiness. Research from Yale’s Dr. Laurie Santos reveals that while conventional wisdom about happiness is often misguided, combining science-backed happiness practices with sound financial planning creates a virtuous cycle of well-being. This comprehensive guide explores actionable strategies that enhance both your emotional health and financial security, demonstrating how proper financial planning, contributes significantly to your overall happiness and peace of mind.
Understanding International Day of Happiness 2025
March 20, 2025, marks the annual International Day of Happiness, a global celebration established by the United Nations in 2012 to recognize happiness as a fundamental human right and goal. This year’s theme, “Caring and Sharing,” emphasizes how kindness and generosity contribute to building stronger communities and enhancing overall well-being.
The initiative was originally introduced in Bhutan, a country that has prioritized Gross National Happiness over Gross Domestic Product since the early 1970s. This approach recognizes that economic growth alone doesn’t guarantee happiness—a perspective increasingly relevant in today’s finance-driven world.
The Science Behind Happiness: Insights from The Happiness Lab
Dr. Laurie Santos, Yale professor and host of the popular podcast “The Happiness Lab,” teaches what became the most attended class in Yale’s history—focusing on the science of happiness. Her research reveals that many conventional beliefs about happiness (like assuming more money or better jobs automatically make us happier) are often misguided.
“You might think you know what it takes to lead a happier life… more money, a better job, or Instagram-worthy vacations. You’re dead wrong,” states Dr. Santos in her podcast introduction. Her work emphasizes that happiness stems from specific practices and mindsets that anyone can develop, regardless of their current situation, and of course, their financial situation.
However, her research also acknowledges that financial stability creates a foundation that makes practicing these happiness habits more accessible. When basic financial needs are met, we have more cognitive bandwidth to focus on happiness-enhancing activities.
The Financial-Happiness Connection
Financial stress can significantly undermine happiness, with studies consistently showing that financial insecurity contributes to anxiety, depression, and reduced life satisfaction. However, research also demonstrates that beyond meeting basic needs, additional wealth yields diminishing returns on happiness.
Finding the Sweet Spot: Financial Security and Emotional Well-being
The key to maximizing happiness through finances isn’t simply accumulating wealth but creating security and using financial resources in happiness-promoting ways. This includes:
Building a financial safety net: Emergency funds and appropriate insurance coverage create peace of mind by reducing uncertainty about the future.
Spending on experiences rather than possessions: Research shows experiential purchases yield more lasting happiness than material goods. A family vacation or educational workshop often provides more enduring joy than the latest electronic device.
Using money to buy time: Outsourcing tasks you dislike frees up time for activities that bring joy. This might mean hiring a lawn service to create more weekend family time or using meal delivery during busy periods.
Investing in relationships: Strong social connections consistently emerge as the strongest predictor of happiness across cultures and income levels. Allocating financial resources to nurture these connections—whether through shared experiences, thoughtful gifts, or supporting friends and family in need—yields significant happiness returns.
Disclaimer: This article and publication is intended for educational and informational purposes only and does not constitute financial, insurance, or legal advice. Individual circumstances, needs, and outcomes may vary significantly. For tailored guidance to your specific situation, please consult a licensed financial services professional who can provide personalized recommendations in accordance with applicable laws and regulations.
10 Science-Backed Happiness Practices
That Boost Financial Well-being
Dr. Santos and other happiness researchers have identified several practices that not only increase happiness but can improve financial outcomes as well:
1. Define What Makes Your Life Rich and Meaningful
Understanding what truly makes you happy is the foundation for both emotional well-being and sound financial planning. When you clarify your core values and priorities, you can align your financial decisions with what genuinely matters to you.
Create a “values-based budget” that allocates resources first to the areas that bring you genuine fulfillment and align with your core values.
2. Practice Mindful Awareness in the Present Moment
Mindfully savouring positive experiences increases joy and satisfaction. Rather than constantly pursuing future financial goals or regretting past decisions, practicing present-moment awareness allows you to appreciate what you have now.
During financial reviews, notice physical sensations and emotions that arise without immediately reacting to them. This awareness creates space for more thoughtful financial choices.
3. Develop a Daily Gratitude Practice
Gratitude is one of the most powerful happiness boosters. Each day, identify three things you’re grateful for—including aspects of your financial life, no matter how small. Perhaps you’re grateful for a steady paycheque, the ability to save a small amount, or even just having enough for today’s needs.
Create a “financial gratitude journal” where you regularly note positive aspects of your financial situation and acknowledge progress, no matter how small.
4. Build Secure Attachment with Yourself
Self-awareness and self-care form the foundation of happiness. This includes developing a healthy relationship with your finances—understanding your money habits, triggers, and beliefs without harsh self-judgment.
Schedule monthly “financial self-check-ins” where you compassionately review your progress toward goals, celebrate wins, and identify areas for growth.
5. Nurture Meaningful Connections with Others
Consistent and meaningful human connections significantly contribute to happiness. In financial contexts, this means creating open, honest communication about money with partners, family members, and trusted advisors.
Schedule monthly “financial connection” conversations with key people in your life, focusing not just on numbers but on hopes, dreams, and concerns related to money.
6. Develop Serenity About What You Cannot Control
Learning to accept what you cannot control while taking action on what you can is a powerful practice for both financial success and happiness. This “financial serenity” reduces stress during market volatility and prevents panic-driven decisions.
Create a “control inventory” for your finances, clearly distinguishing between factors you can influence and those you cannot. Focus your energy exclusively on the former.
7. Engage in Random Acts of Kindness
Acts of kindness boost mood and increase oxytocin levels. Research shows that spending money on others often brings more happiness than spending on ourselves. Building charitable giving into your financial plan—even small amounts—can significantly boost well-being.
Allocate a specific percentage of income (even 1-2%) to helping others, whether through formal charitable giving or direct assistance to friends, family, or community members in need.
8. Spend Time Outside in Nature
Nature has healing effects on mental health, reducing stress and enhancing well-being. Regular time outdoors costs little but yields significant happiness returns.
Prioritize low-cost outdoor activities in your recreation budget, recognizing that these experiences often provide more happiness per dollar than expensive indoor entertainment.
9. Establish Consistent Sleep and Health Routines
Quality sleep is crucial for happiness and well-being. These practices also reduce healthcare costs and increase productivity—creating a positive financial impact over time.
View health investments (quality food, exercise, preventive care) as financial investments that yield returns through reduced healthcare costs and increased earning potential.
10. Engage in Play and Creative Hobbies
Finding small daily joys through play and hobbies creates a more fulfilling life. These activities often cost little but provide significant happiness returns.
Budget for hobbies and play as essential investments in your well-being rather than frivolous expenses, recognizing their role in preventing burnout and enhancing life satisfaction.
Greatway’s Takeaways
True happiness stems from a combination of emotional practices and practical security measures, including sound financial planning
Financial wellness and emotional well-being create a virtuous cycle, each enhancing the other
Science-backed happiness practices can be adapted to improve financial decisions and outcomes
Life insurance functions as both a financial tool and a happiness enhancer by providing security, expressing care, and reducing uncertainty
Small, consistent actions in both happiness practices and financial planning yield significant long-term benefits
The theme of International Day of Happiness 2025—“Caring and Sharing”—perfectly aligns with thoughtful financial planning that protects those we love
Your Happiness Action Plan
Choose three happiness practices from this article to implement this week
Schedule a financial review to identify areas where greater security would increase your peace of mind
Have an honest conversation with loved ones about both happiness priorities and financial security needs
Consider how your current insurance coverage aligns with your desire to provide security and express care for those who matter most
Reach out to a trusted financial professional to discuss how appropriate planning might enhance both your financial security and overall happiness
Remember Dr. Santos’ key insight: happiness doesn’t come from what we think it does. Often, the actions that most enhance our well-being are not grand gestures but small, consistent practices—including those that create financial security and express care for our loved ones.
On this International Day of Happiness, commit to at least one action that enhances both your emotional and financial well-being. Your future self—and those you care about most—will thank you.