Yale's most popular course is available for free: what you can learn from it

Correspondent CNBC Dave Schools decided to upgrade his personal skills and change his attitude towards money. To do this, he took an online course from Yale University and shared his impressions.

They say money doesn't bring happiness. For most of my life, I thought the idea was impossible to justify. Anyone who says a million dollars won't make them happier must be wrong.

Money gives you more control over your life. These are: the freedom to retire early; security to support yourself and your family; the convenience of buying things and services that make you happy; being able to say yes when your friends invite you to dinner… I could go on like this.

So when Yale did online happiness course for freeI decided to try. The New York Times called it "the most popular course in the history of the university". Hundreds of people reporting life changes after taking the course convinced me. Maybe it will change my attitude towards money., I thought.

The 10-week course titled "The Science of Wellbeing" is taught by Lori Santos, Professor of Psychology and Cognitive Science. She begins the lesson by explaining why what we want in life doesn't actually make us happy.

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The culprit is a phenomenon called “wrong desire,” and it has to do with the idea that people sometimes “incorrectly predict” how much they will enjoy something in the future.

Money ≠ happiness.

Santos cites several "annoying features of the mind". They make us chase things that don't really make us happy. Santos argues that many of the materialistic goals we strive for have little to no effect on our overall life satisfaction. One of the main misconceptions she handles is money.

To prove his point, Santos quotes the well-known research conducted at Princeton in 2010. The researchers analyzed the responses of 450 Americans who were interviewed about their income and whether they are living the best life possible for them. The data showed that while happiness increases with income, the correlation peaks at about $75 per year.

The problem with this study, however, is that it was published almost ten years ago. Since then, the idea that happiness is not about money has been debunked by a number of researchers. A 2012 survey by Skandia International Wealth Sentiment Monitor found that the global "happiness income" is much higher at $160.

"Happiness is to some extent related to money"

And a recent 2018 Harvard study found that “greater wealth does indeed bring greater happiness” – for millionaires. The researchers found “consistent evidence that slightly higher levels of wealth are not associated with higher levels of wealth.

But significantly higher levels (a fortune of $8 million or more) are associated with higher levels of wealth.” Although most of us are not millionaires, there is still enough data to suggest that happiness is to some extent connected with money.

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When I asked Santos what she thought about research, she replied, “They are important, but I don't think they change the class idea that great wealth has little effect on happiness. The bottom line is that this lot less than we expect and much less efficient than other methods we offer.”

Practices like meditation, gratitude, and making time for social connections have the biggest impact on our well-being, she says. She added that they are much easier to achieve than trying to break the $10 million mark.

Santos is convinced: “Money does not increase happiness in the way we think. Our minds lie to us about the impact that extra money will have on our happiness.”

Be more mindful of how you spend money

Later in class, Santos interviews Elizabeth Dunn, a happiness researcher and co-author of the book "Happy Money" They discuss why we spend money on experiences and not things.

But don't things give rise to experience? And you don't need money to buy these things? The experience of driving on the scenic highway makes me happy, which is why I spent thousands on the car. The experience of travel makes me happy, which is why I've spent thousands on tickets, not to mention hotel, food, and sightseeing expenses.

Santos' response to my point of view is: “It depends. If you remember how it feels to drive a new car in terms of the music and how well it rides and stuff, a new car can feel like an experience.”

Okay, that makes a little more sense: it's more about replacement. Money can make me happy if I focus on buying things that bring the same positive experience every time.

New and often short experiences, such as an expensive shirt that I don't intend to wear every day, are less susceptible to hedonistic adaptation. The goal is to keep happiness alive.

New goal: change your lifestyle and mindset

Santos ends the session with this: “Does money really make us happier? Maybe a little. Maybe if you live in the US and make only $10 a year, then yes, more money will make you happier.” However, for the rest of us, big money won't mean much.

Overall, the course has changed the way I think about money, especially how I spend it and how I prioritize it. I am currently working on changing my lifestyle and thinking. While there is no single panacea for happiness, action is most helpful where I personally am not perfect.

Santos encouraged us to experiment with different practices to see what works best. It has been a few months since I completed the course and these practices and new thinking are amazingly changing my life. Now my turn:

• Learning new skills to achieve a more positive outcome in life, and not just for the sake of money or "moving" up the career ladder.
• I become kinder by spending money on others, not on myself.
• I spend more time with friends and family instead of work (especially on weekends).
• I spend less money on things that don't last, like fancy gadgets, while I spend more on sheets that I really need.
• Incorporate healthy habits into my day such as exercise, journaling, and meditation.

Am I fully convinced that money will not make me happy? Not really. It will take a lot of effort on my part, but I'm working on it - and it's a pretty big leap when comparing Old Dave to New Dave.