Woman who paid off $30k debt in 1.5 years shares lessons for happiness (2024)

New shoes, a great outfit, another delicious takeout meal - all surefire ways to quick contentment.

But over the long term, these things aren't likely to contribute to your wellbeing, according to Australian YouTube star Michelle Barnes, better known to fans asMuchelleB.

When it comes to wrangling finances, the blogger is somewhat of an expert - not only did she pay off $30,000 worth of debt in a year-and-a-half but she also overhauled her life in the process.

Sharing what she has learned on a recent YouTube clip, Michelle said: 'It's been shown your happiness doesn't usually increase as your income rises'.

Here, FEMAIL takes a look at Michelle's five life lessons she swears by for happiness.

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1. Buy experiences, not things

'Your life is really just a string of moments, so why not make them good ones?,' Michelle outlined in the video.

While spending a certain sum of money on a much-coveted item 'releases all the good stuff in your brain', it's likely after a month this purchase won't be significant.

Michelle said contrast this against spending a nominal amount on a weekend away. The memories of your adventure 'in a cool place, with cool people and cool vibes' are never going to lose their shine.

'Memories stick with you for good whereas possessions are only temporary,' she said.

2. Spend your money on experiential purchases

Experiential purchases are those things you buy with the intention of building your happiness or fostering greater competence.

'Things like a really good book, an online course or even a gratitude journal,' the blogger said.

This is a claim backed byresearch which suggests that for long-term happiness, experiences tend to beat possessions.

'Experiential purchases that build your happiness, your competence or experiences mean in the long run you will be more content than [you would] with quick impulse buys,' Michelle said.

3. Spend money on others

If you are really looking for a way to feel good about yourself, spend on others.

It's an idea that's also backed by science. Michelle explained how a Canadianstudy looked at two control groups and their responses to spending, either on themselves or others.

Results showed those who were given money to spend on others were measurably happier than those who were given money to spend on themselves.

'Studies show when you are generous, this activates the reward centre in your brain. It's the same reward centre that lights up when we have dessert or sex,' Michelle said.

'So being really generous with your money can be kind of a selfish thing to do. It can improve social connections with colleagues or friends and it makes you feel like a better human.'

4. Buy some time with your cash

Given the average Australian clocks up close to a 50-hour working week, time is often in short supply.

The one thing you can do to remedy this is buy time.

Michelle explains this can be as simple as buying a week's worth of pre-cooked meals or employing a cleaner to spruce up your home once a week.

'Buying time is definitely one of the more expensive things but if you can afford to buy yourself time to do things you want to do it is definitely one of the best ways to spend your money,' she explained.

5. Buy financial security

There's nothing more worrying than having an unexpected bill arrive and not having the funds to cover this. Or worse, a job loss and no reserve to make ends meet.

'Money worries are definitely one of the worst kind of worries and the most anxiety-inducing,' Michelle said.

'That's why paying off debts and building a little financial security cushion is one of the better places to put your money.'

Her suggestion for those wanting to get started, or take better control of their finances, is to set-up automatic bank payments so as soon as the money hits your account a set amount is directed towards living costs, loans and 'best life' savings.