In the May 22nd edition of his 3-2-1 Thursday newsletter, James Clear poses a thought-provoking question inspired by the new edition of The Simple Path to Wealth:

“Which expense in your life delivers the least happiness per dollar—and which delivers the most?”

It’s a question that’s made me pause and reflect. What does happiness really look like in my life? Do we—can we—measure happiness in terms of ROI (return on investment)?

When I first considered this through the lens of money spent or invested, my mind went straight to financial security. I thought about the comfort and peace of mind that comes from a healthy savings account or emergency fund. That kind of stability does bring me happiness—perhaps not daily joy, but a deep-rooted sense of calm.

Still… I’m beginning to wonder if there’s another way to look at it. Are there smaller, everyday expenses—less obvious ones—that yield disproportionate happiness?

Defining Happiness

How do we define happiness? Is it based on circumstances, possessions, or experiences?

The answer is deeply personal. Each of us has our own definition—and rightly so. I can’t base my happiness on someone else’s opinion or lifestyle.

But here’s what I keep wondering: Does how I save, spend or give my money influence my happiness?

For me, it’s not just the act of saving, spending, or giving. It’s the outcome of how I manage those functions of money that brings satisfaction—maybe even happiness.

• Save – There’s joy in knowing we can visit family, take a vacation, and not fear our retirement years. That kind of financial preparedness brings peace of mind.
• Spend – After saving, I get to spend intentionally—on airline tickets, a cozy Airbnb, or updates to our home that make it feel more “us.”
• Give – We’re able to give thoughtfully—both planned and spontaneous generosity—and that feels like abundance.

As I ponder this, I come to the realization that there’s a deep comfort and peace of mind that comes from a healthy savings account or emergency fund. It might not be daily, or overwhelming joy, but it’s a steady, grounded sense of calm. And for me, that absolutely counts as happiness.

Reflect and Apply:

What is one way your saving, spending or giving brings you a sense of peace, joy, or purpose?