TIME Careers & Workplace

1 Trick to Getting What You Want When You Negotiate

Boss
MoMo Productions—Getty Images

You won't believe how easy it is

Conventional wisdom says that, in negotiations, it’s better to offer the other party a firm number rather than a range. The thinking is that a hiring manager who hears, “I want between $40,000 and $45,000″ will focus on the lower number, or somebody you want to buy a car from will jump on the higher number if you tell them, “I can pay between $8,000 and $8,500.”

That conventional wisdom is wrong. New research finds that people who offer a range really give themselves a better chance at getting the number they really want — but you have to do it the right way.

Columbia Business School professor Daniel Ames says there are a couple things going on when you negotiate with a range as opposed to a single number. For starters, there’s the psychological concept of “tandem anchoring.” When we hear a range, our minds are predisposed to take both numbers into account, not just the one that we want to hear.

“Our research shows that people receiving a range offer are often influenced by both ends of that range in estimating their counterpart’s limits,” Ames says.

The other psychological component at work is what Ames calls the “politeness effect.” While we generally think we drive a hard bargain when we negotiate, we’re not really as tough as we think we are. “We tend to think of negotiators as being reasonably shrewd and skeptical and self-interested,” Ames says. “But across multiple studies, that’s not what we found… When we look at the counteroffers that negotiators made, it was partly predicted by how rude or polite they thought it would be to make that proposal.” Even in cases where a negotiation is anonymous and buyer and seller don’t expect to cross paths again, most of us are still reluctant to be overly cutthroat.

The key to turning this into a number you want to hear — whether you’re landing a job or buying a car — is to give the other party what Ames calls a “bolstering range;” in plain English, tilt the numbers in your favor. If you want a salary of $50,000, tell the hiring manager you’d like between $50,000 and $55,000.”Range offers tend to shift what offer-recipients think about the offer-makers’ limits,” Ames says. “Adding a higher number… tends to tug assumptions about that limit higher.”

Now, Ames points out there are a few limits to this. “That doesn’t necessarily mean they assume the limit is the mid-point of the range,” he says. In one experiment where subjects were asked how much they would pay for a hypothetical catered event, those who heard the caterer’s estimate of $100 countered with an average of $77, although even those who heard an estimated range of $100 to $120 only offered an average of $83. “They didn’t all necessarily end up inside the range itself, but they tended to end up with more than they would have gotten with just the point offer,” Ames says.

So aim high, but keep it reasonable, Ames warns. “Range offers have some limits,” he says. “[They] tend to work best when they start at assertive, but not outrageous, levels and when they span a modest width.” In other words, if you want a $60,000 salary in a job offer, don’t suggest a range of $75,000 to $80,000. And don’t make the range so broad that it can damage your credibility, he cautions. “Range offers that go beyond normal widths, which tend to be 5-20%, tend not to bring extra value.”

Read next: 4 Subtle Mistakes That Are Ruining Your Chances for a Promotion

Listen to the most important stories of the day.

MONEY Shopping

The Country Where Flip Phones Are Still Popular

Despite the country's reputation as a technology leader, Japanese consumers are still buying flip phones. New research shows that flip phone shipments grew in Japan while smartphone shipments declined.

MONEY Shopping

The Curious Ways Brutal Snowstorms Affect How We Shop

The region is being hit once again by snow, and some businesses such as this T.J. Maxx store in North Andover, Mass., were closed, February 9, 2015.
Jim Davis—Boston Globe via Getty Images The Northeast was hit once again by snow, and some businesses such as this T.J. Maxx store in North Andover, Mass., were closed, February 9, 2015.

As the snow piles up in the Northeast, business suffers at many restaurants and stores, as you'd expect. But bad weather isn't bad news across the board for retailers.

We’ve seen the pattern repeat itself many times over. Weather forecasters predict a big winter storm, and long before the snowflakes appear, panicked shoppers hit the supermarkets to grab whatever milk, bread, eggs, and, if you’re at Whole Foods, kale, is still available.

Likewise, the arrival of a blizzard—or rather, the forecast that one could be coming—all but guarantees that there to be a run on shovels, sand, salt, and other snow-coping materials at hardware stores and home improvement centers. Gas stations and stores selling winter boots and other cold-weather gear can rely on storm forecasts to create sales spikes too.

In these ways, at least, the storms pounding New England and much of the Mid-Atlantic region over the past few weeks have boosted retail sales in ways not seen since, well, last winter, when the polar vortex caused mad rushes on grocery stores throughout the Midwest.

And yet, bad winter weather is hardly a good thing for retail in general. In fact, for stores that aren’t selling groceries, gas, shovels, or boots, blizzards can be business killers. Jon Hurst, president of the Retailers Association of Massachusetts, told the Boston Herald that “conservatively,” retailers in the state have lost $10 million for each day they’ve been closed or had almost no business thanks to relentless snow. Restaurant owners in Rhode Island are calling this “the worst February in years” thanks to snow keeping would-be customers at home. Overall, a 2014 IHS Global Insight study found that a single-day shutdown in New York can add up to $700 million in total economic costs, including $152 million in lost retail sales.

Presumably, the bulk of those lost sales transactions would have been conducted in person. After all, snow and cold weather can only prod more consumers to stay indoors and shop online, right? Actually, the impact of big snowstorms on online shopping is a bit muddled.

On the one hand, 16% of consumers in a recent survey from Fluent said that they have shopped less this winter, while 27% said they have done more online shopping. So snow + frigid temperatures = increased online sales, right? Not so quick.

According to Adobe Digital Index data, the winter storm that hammered the Northeast in late January resulted in a $35 million decrease in online sales, largely because people were home rather than at work. “During the work week, a lot of people really do shop from their work desktop,” Adobe analyst Tamara Gaffney explained to InternetRetailer.com. “You also have power outages and people out shoveling snow. They’re not shopping, they’re doing other things. It has a negative impact on e-commerce.”

Another way that winter storms can wreak havoc on e-retail is that when roads are impassable or close to it, it’s extraordinarily difficult for goods to simply be picked up or delivered. For instance, a Federal Express Service Alert issued this week warned that in light of persistent snowy weather in the Northeast, “some service delays and disruptions can be anticipated for inbound and outbound shipments in CT, ME, MA, NH, NJ, NY, PA and VT.”

For what it’s worth, the impact of snow—even a series of storms in a particularly bad winter—is generally short-lived. Often, if snow or cold weather brings about a slow period for sales of cars or home appliances or whatever, there will be a significant, corresponding rise in sales once things warm up. In other words, the sales shift; they don’t simply disappear.

Besides, retailers really shouldn’t go blaming uncooperative weather as the reason sales have been poor. “It’s usually one of those ‘dog ate my homework’ excuses,” Forrester Research analyst Sucharita Mulpuru told Bloomberg News last fall, when some apparel stores were pointing the finger at warm weather for why winter fashions weren’t selling well. “Whenever something can’t be explained and is an anomaly — and it happens to coincide with an unusual weather pattern — that becomes the reason people supposedly didn’t shop.”

The observation calls to mind the way that Big Beer blamed unseasonably cold weather in the spring of 2013 as a prime reason macro beer brands like Budweiser, Miller Lite, and Heineken were experiencing slumping sales. Meanwhile, Bud and other major beer brands have seen sales decrease for years, and why this is so has a lot more to do with the increasing popularity of craft beer, cider, boutique spirit distilleries, and other alternatives to pale mass-produced American lagers than it does to any bad spell of weather.

MONEY Saving

Why Candy Companies Hate the Way You’re Shopping

Candy at newsstand
Patti McConville—Alamy

When shoppers are picking up groceries curbside or staring at their smartphones in the checkout line, they're not going to impulsively buy chocolate bars.

No one heads to the supermarket or drugstore with a shopping list that reads:

• Overpriced bottle of Coke
• Trashy celebrity magazine
• Bag of candy I’m not supposed to eat

At least, we hope no one has ever created such a shopping list.

Regardless, those items are snatched up and purchased by many shoppers, typically because they’re tempted while waiting in the checkout area. As customers stand in line, surrounded by the goodies stocked in the vicinity of the cash registers, sometimes their rumbling stomachs and base curiosities get the better of them. The result: They drop a few bucks to satisfy a chocolate craving or read about the latest contrived Kardashian scandal, and the store wins some quick and easy profits.

But what if there were no opportunity for the store to tempt you into making such ill-advised impulse buys? Well, in fact, it’s getting harder for stores to nudge customers into making checkout impulse grabs, and tech is a big reason why.

While the advent of smartphones doesn’t eliminate the possibility of checkout impulse purchases, research indicates that our iPhones and Androids serve as “mobile blinders” that shield us from mindlessly eyeing the candy shelves and other checkout area temptations. In other words, because we’re checking email or Twitter or Instagram or playing some silly game on our phones, the odds are lower that we’ll buy, or even see, gum, chocolate, and the latest issue of Cosmo.

What’s more, online shopping, as well as the increasingly popular option of ordering groceries or other goods online and then picking up purchases curbside, all but negates any chance for the shopper to make an impulse buy. Another potential impulse purchase killer is self-checkout: Because shoppers are occupied with scanning their orders, they’re not thinking about how wonderful that chocolate bar in front of them would taste.

For obvious reasons, companies whose business relies on such impulse purchases aren’t happy about any of this, and at least one large candy company is doing something about it. Recently, the blog Retail Wire took note of some comments on the topic—and what’s known by insiders as “dwell time”—made by Chris Witham, a senior manager of front-end experience for Hershey, at an industry event.

“Anytime there is a pause in the shopping trip and shoppers take a look at some of the merchandising that is available, that is dwell time,” explained Witham. Obviously, retailers and companies like Hershey want shoppers to encounter some “dwell time” in order to maximize the odds that they will add an impulse purchase to their carts. Still, they don’t want shoppers to get annoyed by being forced to wait around forever. “As they get to pay points, how much is a good amount of dwell time [going] to encourage impulse purchase, but not have a detrimental effect on the shopping trip as a whole?”

Among the strategies Hershey is actively working on to counter the effects of technology and boost opportunities for impulse buys are adding on-demand chocolate dispensers to self-checkout areas, as well as candy and snack kiosks and vending to curbside pickup areas and perhaps near the pumps at gas stations. What’s clear is that candy companies aren’t simply going to give up on pushing impulse sales, no matter how technology changes the game.

“Impulse, in an indulgent business, is really important … But shopping is changing, and impulse is under threat,” said Frank Jimenez, Hershey’s senior director of retail evolution, according to The (UK) Guardian. “What happens if and when the checkout goes away?”

And what happens if the majority of shoppers turn into those described by the Wall Street Journal last fall:

They are time-pressed and deal savvy, visiting stores only when they run out of items like cereal or toilet paper and after doing extensive research on purchases online and with friends. They buy what they came for—and then leave.

There’s little to no chance a store can ensnare this kind of shopper in an impulse buy. It’s a good thing for stores, and for companies such as Hershey, that other research indicates that 9 out of 10 consumers buy things that aren’t on their shopping lists, and that millennials are most likely to make impulse buys not because they spotted a good deal or promotion but simply to pamper themselves.

Among the takeaways for shoppers who don’t want to be suckered into impulse purchases: 1) Shop with a list. 2) Stick to the list. 3) Keep your head down at the checkout area to avoid temptation. 4) Take advantage of online shopping and/or curbside pick-up services when they make sense.

TIME

When Gas Prices Fell, Nobody Expected This

Murphy USA gas station in Nevada, MO. January 10, 2015.
Barrett Emke for TIME Murphy USA gas station in Nevada, Mo., Jan. 10, 2015.

We're too shell-shocked to appreciate the windfall

It wasn’t supposed to go like this. With gas prices plummeting, economists and analysts who study consumer spending were gleeful. This would be the shot in the arm the economy needed, they predicted. With that money in their pockets instead of their tanks, Americans would be more confident and increase their spending on discretionary purchases.

But that’s not what happened. Instead, families are hanging onto that extra money, stashing it in the bank or paying down their debts.

“We haven’t seen the extra savings from lower gas prices translate into additional discretionary consumer spending,” MasterCard CEO Ajay Banga said in a recent conference call. “I don’t think the U.S. consumer knows whether to expect this to be sticking around or not.”

Judging by our shopping behavior, we’re still extra-sensitive when it comes to gas prices. In a recent survey, the National Association of Convenience Stores finds that 71% of people say price is the most important factor when they buy gas. That’s five percentage points higher than last year even though the average price of gas has dropped by a dollar since the earlier survey was conducted. We’re fixated on the price of gas even when it’s not logical. More than 10% of people say they’d drive 10 minutes out of their way to save a nickel per gallon, even though you’d need to buy at least 22 gallons just to break even, considering the cost of the gas you’ll burn to get to the cheaper station.

That’s because, even more than five years after it officially ended, we’re still haunted by the Great Recession. “The pain of the recession remains fresh in the minds of many Americans,” the Wall Street Journal says. Compared to six months ago, the average consumer has about $60 that they’re not spending on gas each month, the newspaper says, pointing out that this is more money than many people have gotten in raises in recent years. But even though the holidays typically bring a surge in spending, new Commerce Department data shows that consumer spending actually fell slightly in December.

This is one of those situations where what’s good for consumers individually and what’s good for the economy overall are different. While it’s smart for people to set aside a cash cushion and pay down debts, it’s better for the economy if we take that extra money we’re not spending on gas and use it on other purchases.

Economists are still hoping that cheaper gas will coax people to spend more in the coming months, provided prices at the pump stay low.

“This all bodes well for consumption growth in early 2015,” economist Paul Diggle tells the New York Times, and MasterCard’s Banga said another few months of lower gas prices might give consumers the confidence they need to start spending those savings.

TIME

Here’s the Surprising Reason Companies Can Get Away With Bad Service

And why you're willing to take it

If you stood on a long, slow-moving line in a coffee shop, only to be handed the wrong drink when you finally did order, you’d probably express some dissatisfaction. Maybe you’d gripe to your co-worker about the experience at lunch, post a snarky Yelp review or vent on Facebook.

But new research shows businesses have a secret weapon that can diffuse customer ire over bad service. If a company practices “corporate social responsibility” — that is, donating to good causes — customers actually feel bad if they complain.

Jeff Joireman, an associate professor of marketing at Washington State University, tested how people would respond if they had to wait a long time to order at a coffee shop, and were then handed the wrong drink. As you might expect, people were annoyed — unless they had been told beforehand that the business donated 15% of its profits to environmental causes.

“Customers anticipate feeling guilty if they were to spread negative word of mouth because they know the company is doing good works that the customer values,” he explains.

Joireman says this is because the company has built up “moral capital and… a reservoir of goodwill.” Customers know that complaining could hurt the cause or causes the company supports as well as its own business.

Some companies do this better than others. Joireman finds that this effect is stronger when companies donate to a range of causes rather than a single one, because it’s more likely that people will identify with at least one of the causes. Donating a decent chunk of profits, like 15%, is much more effective than donating a tiny, token amount like just 2%. And the impact is even bigger if the company lets its customers pick which one they want their portion of the donation to benefit.

It’s also likely that companies whose customer base contains a significant number of young adults will have better luck with this tactic, since other research has shown that millennials are more interested in corporate social responsibility overall.

And, in a roundabout way, this can even benefit consumers as well, Joireman says. If you experience bad service and get disgruntled, venting might make you feel better, but it also will probably make you stay angry longer. And the more mental energy you spend thinking about how you were wronged, the more likely you are to enter into your next transaction with that business expecting something negative.

“We call this the ‘hostile attribution bias,’” Joireman says. “The hostile attribution bias makes people more likely to see nefarious motives in ambiguous situations.”

And this attitude can be a self-fulfilling prophecy, he warns. “Research shows that the expectations we bring into a situation influence our treatment of another person, and that person will often simply confirm the expectation we had,” he says. In other words, you’ll be a little snippy to the barista, and then perceive that they’re less polite towards you. If you scowl at them, you’re more likely to get a scowl in return, thanks to an unconscious tendency people have to mirror or mimic the expressions of people with whom they interact.

“On the other hand, giving people the benefit of the doubt, and cutting them slack, can promote a more positive spiral which leads to much better outcomes,” Joireman says. “A smile can go a long way to starting the interaction off right. What we do with our bodies, in turn, also influences our mood; smiling makes us happier.”

At the end of the day, that’s something you can’t put a price on.

TIME

The 1 Weird Reason You’re Tipping More

TIME.com stock photos Money Dollar Bills
Elizabeth Renstrom for TIME

These tricks businesses use could make you more likely to tip

If you buy a cup of coffee or lunch and your server pulls out an iPad, pay attention: You could wind up leaving a higher tip without even realizing it.

When software research company Software Advice surveyed consumers who use iPads or similar devices to buy food and drink, it found that the use of iPads increases the amount many people tip when they pay. More than four in 10 consumers say being in close proximity to their server at the time of the transaction can prompt them to leave a tip when they otherwise might not have.

What’s more, nearly 30% of respondents say they would be more likely to tip if they had to tap a button that says “no tip,” a feature many establishments use.

“This is especially more prevalent at places like coffee shops or at food trucks where the person taking your card is standing right in front of you,” says Justin Guinn, retail market researcher at Software Advice. “People might feel awkward pressing a ‘no tip’ button with the server or cashier looking right at them, waiting for them to make a choice. There’s an undeniable guilty feeling,” he says.

Others also have observed this phenomenon in restaurants that use digital tipping, and even in taxi fleets that have been converted to accept credit cards via touch screens in the back seat.

“I think there’s some kind of a casino effect,” Manny Pena, owner of a New York City cafe. tells Bon Appetit magazine. “You don’t comprehend that it’s real money.”

And in some cases, establishments take advantage of the addition of iPads to tweak the standard tip — rather than offer customers a range with 15% at the midpoint, 15% or even 18% might be the starting point. Reflexively hitting the center option without thinking about it could lead to paying a few percentage points more.

When coffee giant Starbucks added the ability for a customer to leave a tip to their barista using the payment function on their mobile app, they included dollar amounts up to $2 — which adds up to a whopping 50% tip even if you’re paying $4 for your caffeine fix.

It could be guilt at work, or it could be the convenience of paying with a couple of taps, according to Guinn.

“Whether or not patrons are ‘feeling the pressure’ to tip more because the server is standing next to them certainly seems to be a factor in the amount they’re leaving,” he says. “However, since the iPad is streamlining the ordering and paying process overall, it could be the convenience of the iPad itself.”

 

 

MONEY Sports

2015 Super Bowl’s Most Fun, Stupid, and Absurd Prop Bets

150128_EM_SBBets
Steven Puetzer—Getty Images

If you've been itching to place a random quirky sports wager that really has nothing to do with sports, wins, or losses, then step right up to the gimmicky world of Super Bowl prop bets.

The Super Bowl is on Sunday. Who are you picking in the coin toss? What’s the likelihood of hearing some variation of the phrase “deflated balls” on air during the game? How about your take on Katy Perry’s choice of outfits during the halftime shows? The odds favor skirt, but you’ll make more money if you bet she wears pants and she does—and you’ll really clean up if you guess right that she dons a whipped cream bikini (18/1 odds).

Known as “prop” bets—short for proposition—these kinds of quirky novelty wagers only tangentially related to the game are increasingly popular during the Super Bowl. For example, the Westgate Las Vegas Sportsbook offers roughly 350 different kinds of bets related to this year’s Super Bowl. The Bovada sportsbook has hundreds more bizarre betting options, many involving events far away from the football world, such as whether the Dow Jones Industrial Average will be up or down the day after the game, and whether or not Punxsutawney Phil will see his shadow on Groundhog Day.

In most cases, gamblers can’t pretend to have genuine insight as to what’s going to really happen in these silly scenarios, so winning a bet is like correctly picking the flip of a coin (which you can wager on too, naturally). You can not only bet on whether the Super Bowl opening coin toss lands on heads or tails, but on which team will win the coin toss, and whether the team that wins the coin toss will ultimately win the game.

The history of Super Bowl prop bets dates back to 1985, when the Chicago Bears gargantuan defensive lineman William “The Refrigerator” Perry was used during the season as a running back in goal line situations, and his popularity led to a quirky bet concerning whether he’d score a touchdown during the Super Bowl. (He did.) Countless absurd bets have followed, such as the proposition in 2013 as to whether any players will be arrested in the lead-up to the game, and whether or not the announcers at last year’s Super Bowl would say the word “marijuana” during the telecast. (The game concerned teams from two states where recreational marijuana sales became legal in 2014.)

By some reckoning, roughly one-third of all Super Bowl wagers aren’t about basics like the over/under or which team will win, but are prop bets like those cited above. Why are people interested in betting on such gimmicky nonsense?

Bruce Svare, a psychology professor at SUNY-Albany who studies sports and addiction, says that there isn’t much research regarding prop bets, at least partially because the phenomenon is so new and, for now at least, largely limited to the Super Bowl. “What I can tell you is that the gambling industry is willing to devise anything to bring more money their way in profits,” Svare said via email. “Proposition betting is probably very popular because gamblers seek frequent and immediate action and gratification.”

In fact, the strangeness and novelty of these gimmicky bets is likely part of the allure. “It is well known that novelty can also drive biochemical events in the brain that may lead to increased interest and ultimately greater vulnerability to addiction for some individuals,” Svare said.

Among the 2015 Super Bowl’s silliest prop bets, the subjects for wagering include:

Bill Belichick’s Fashion and Facial Expressions
In a bet involving the color of hoodie worn during the game by the New England Patriots coach, gray is the favorite, while blue and red are the underdogs. Place a $100 bet on gray, and if you’re right, you win $50. Another bet involves the odds of the surly, ultra-serious coach actually smiling on camera during the game.

Meaningless Game Statistics
You can bet on the total yardage of all made field goals during the game (over/under: 111.5 yards), whether or not the first kickoff results in a touchback, the length of the game’s shortest touchdown (over/under 1.5 yards), and if the game will decided by exactly 3 points, among other options.

The Announcers
You can wager on the number of times halftime performer Katy Perry will be mentioned on air during the first half of the game, as well as how many times the announcers will say “deflated balls” (over/under: 2.5) during the telecast.

Other Sports
For instance, you can bet whether there will be more goals in an NHL that day (perhaps Coyotes-Canadiens or Blues-Capitals) than there are touchdowns scored in the Super Bowl by the Patriots and Seahawks. Other bets involve Barclay’s Premier League Soccer (will Cristiano Ronaldo score more goals than Marshawn Lynch has touchdowns?) and the NBA (Will the Warriors’ Stephen Curry make more 3-pointers than there are made field goals during the Super Bowl?).

Stuff That Has Nothing to Do With Any Sports
In addition to one-air mentions of Katy Perry’s name, gamblers can place bets on what songs she’ll sing, whether she’ll wear pants, shorts, or a skirt, and whether or not singer Idina Menzel will omit at least one word in her rendition of the National Anthem before the game.

Marshawn Lynch’s Crotch
The Seahawks’ running back was fined $20,000 recently for grabbing his crotch to celebrate a touchdown against the Green Bay Packers, and he was fined $100,000 earlier this season for not speaking to reporters. Ironically, the NFL has been selling photos of Lynch’s crotch-grab celebration for $150 a pop. What does any of this have to do with betting on the Super Bowl? Well, gamblers can bet on whether Lynch will grab his crotch in the game after scoring a touchdown—a $100 bet that the crass move will indeed happen will pay $400.

The tacticians out there will notice that Lynch made a rare media appearance this week in order to avoid being hit with a $500,000 fine by the NFL. That may indicate he’s not keen on getting fined again, and therefore would make the case that Lynch wouldn’t make an obscene gesture during the Super Bowl. To break down this proposition further … oh, who are we kidding? This is a wager about a guy grabbing his crotch. If you’re betting on this, you’re not thinking about it too seriously. We hope.

MONEY psychology of money

The Only 3 Things You Need to Know About Money and Happiness

happy and sad piggy banks
Sharon Dominick—Getty Images

The final word on whether money truly makes people happier still eludes us. But here's what we know so far.

Maybe you’ve watched Citizen Kane recently—or just heard the truism that “money doesn’t buy happiness.” Either way, you may not be surprised by a new study showing that more income doesn’t seem to make people more content.

The findings, by researchers at the University of British Columbia and Michigan State University, do come with a twist, however: While more cash doesn’t increase joy, it does decrease sadness. “Having more money provides more options for dealing with adversity,” explain authors Elizabeth Dunn, Kostadin Kushlev, and Richard Lucas. “Wealthier people may feel a greater sense of control than poorer people when difficult situations arise.”

So, for example, a leaking roof might be annoying for a few days if you’re rich, but a months-long ordeal that can cripple you physically, financially, and emotionally if you’re poor. Makes sense, right?

Problem is, studies about the relationship between money and happiness seem to be a dime a dozen these days, and their headline conclusions don’t always line up. (Several respected economists, in fact, claim to have found a positive correlation between money and happiness.)

So who’s right? Does it make sense to follow the money in pursuit of happiness, or not? As it turns out, a lot of the research that seems contradictory on the surface is actually complementary when you dig a little deeper. Here are three key lessons from across the literature:

1. Money increases certain types of happiness more than others.

About four years ago, Princeton researchers made headlines with a new study showing that happiness increases along with income up until $75,000, after which point it plateaus. More recently, a pair of University of Michigan professors found that, actually, more money means more happiness without bound.

At face value, these findings might sound at odds, but the seeming contradiction arises from the fact that the researchers used different definitions of “happiness.” Specifically, the 2010 Princeton study measured so-called daily happiness (“How was your day yesterday?”) while the Michigan folks looked at overall assessments of satisfaction (“How do you feel about your life?”). Those are very different questions, and reveal different insights.

While the newest study also used a “daily” metric to calculate happiness, it went further by asking for a full narrative about each day and how subjects felt during three activities. What the new research revealed, says Kushlev, is that what appeared to be happiness in the Princeton study might be better described as a lack of sadness. “When an even more fine-grained measure of happiness is used, no relationship between income and happiness exists,” he says.

Nobel-prize winning economist Daniel Kahneman, who co-authored the 2010 Princeton study, says these new findings don’t refute his so much as they measure contentment—or a lack thereof—from a different angle. After all, it comes down to how one views that $75,000 ceiling on happiness: Financial difficulties get harder and harder as your income descends in the five-figure realm.

“We also found the same effect of poverty on happiness,” says Kahneman.

In short, money seems to make you happier about your life overall—if not about your day—and, at the very least, softens the pain of bad luck.

2. If money can’t buy happiness, happiness just might generate money.

It’s important to remember that what we know about money and happiness is not based on experimental science (the conniving businessmen in Trading Places may have been okay with human experimentation, but academics aren’t). As such, money and happiness have been shown to be merely correlated, not causally connected.

And most of the money/happiness researchers acknowledge that their conclusions can almost always be explained in other ways. In fact, the authors of the new study posit an alternate explanation for their findings: It may be that less money doesn’t cause more sadness, but that more sadness causes less money.

That is, they write, “people who are predisposed to feel sad may… be less likely to maintain the effort necessary to find a better paying job.”

3. You can control the impact of money on your happiness.

As noted above, for every study about the relationship between money and happiness, another identifies exceptions to the rule. Some even show that many super-rich people—23% of them, according to one survey—are overwhelmed by constant financial stress (not to mention even wilder anxieties that members of the middle class might have trouble imagining).

The takeaway? Just focus on simple strategies for getting the most happiness out of the money you already have. Some insights you should consider:

  • Studies show you’ll get more contentment from putting cash toward experiences (like vacations) than material things (like a new TV).
  • Spending on other people actually generates more happiness than splurging on yourself.
  • Likewise, budgeting time to build social connections is a smarter happiness “investment” than making and spending money, research suggests.
  • Lending out possessions can help you enjoy them more once you get them back.
  • It’s best not to focus on money too much. While making more of it might have obvious benefits, obsessing over it stops you from savoring many important aspects of your life.

Read more about money and happiness:

MONEY consumer psychology

Panic Shopping! How a Blizzard Turns Us into Irrational Hoarders at the Grocery Store

A long line of shoppers wait beside mostly-empty shelves in the bread aisle of a grocery store, as people stocked up on items ahead of an approaching snowstorm, in Alexandria, Virginia, USA, 12 February 2014.
Michael Reynolds—epa/Corbis A long line of shoppers wait beside mostly-empty shelves in the bread aisle of a grocery store, as people stocked up on items ahead of an approaching snowstorm, in Alexandria, Virginia, USA, 12 February 2014.

Weather forecasts aren't nearly as reliable as the reaction by shoppers when a bad storm has been predicted. And by reaction we mean overreaction.

Almost exactly a year ago, supermarkets cashed in as shoppers rushed in and ransacked store shelves in anticipation of snowy weather and the polar vortex’s subzero temperatures hitting a broad swath of the country. This week, it’s largely the same story in the Northeast, what with a historic blizzard said to be threatening New England and much of the Mid-Atlantic region.

Over the weekend, the panic hoarding began, with shoppers emptying grocery store shelves and grabbing every last loaf of bread, carton of eggs, and bottle of milk in sight. On Sunday, shoppers at one New Jersey supermarket reported it being nearly impossible to find a parking spot outside the store, while inside the scene was one of empty coolers where milk used to be, employees fighting through crowds to restock shelves, and endless lines snaking away from cash registers. Likewise, shoppers have been sharing photos of the crazy mob scenes over the weekend inside grocery stores in Boston, New York City, and elsewhere with #Snowmaggedon2015, #Blizzardof2015, or whatever your preferred nickname is for the storm.

By now, this kind of pre-storm mad rush at the supermarket is to be expected. Heck, it’s far more reliable than the actual weather forecasts ever are. And to some extent, this behavior is reasonable. We’re relentlessly instructed to take precautions, prepare for the worst, go the route of better safe than sorry, and … you get the gist. You don’t want to be stuck in a blizzard without a shovel or enough food to last for a few days, after all.

Yet, as with so many other things involving human beings, there’s a tendency to go completely overboard. What starts out as a prudent and sensible shopping excursion can quickly devolve into a frenzied, agitated exercise in hoarding at an overcrowded supermarket or hardware store, as the ugly, primal side of humanity rises to the surface.

During the polar vortex of early 2014, for instance, some supermarket customers reported that meat and bread were swiped from their shopping carts while their backs were turned. Ever since Superstorm Sandy left gas stations without gas and led to some instances of price gouging where gas was available, drivers have been known to flock to the pumps to fill up when a big storm is in the forecast. Far more often than not, of course, it’s wholly unnecessary to wait in line for 30 minutes or longer just to top off your gas tank.

What is it, then, that pushes us over the edge? Why do shoppers head out to the store in preparation of some snow and perhaps a couple days without power, and then they (OK—we) wind up hoarding all manner of goods as if preparing for the apocalypse?

Part of the explanation is mob mentality. When we see others streaming into stores and snatching up perishable goods by the cartload, we feel pressure to do the same. Perhaps, we think, these crazed shoppers all around us know something we don’t? It’s easy to see how this mentality snowballs—excuse the pun—when an epic blizzard is expected. This kind of thinking also pushes consumers into the realm of irrationality on days like Black Friday, when the bustle of crowds and competition causes people to overreact and buy things they wouldn’t have had there not been dozens of shoppers fighting to get their hands on some supposedly hot, must-have holiday purchase.

Consumer psychologist Kit Yarrow, an author and frequent TIME and MONEY contributor, explained via email that no matter if it’s Black Friday or the day before a blizzard or hurricane is about to hit, when crowds descend on stores we essentially revert to cavemen. “Clearly we’re responding to emotions and crowds, and our brains are a few steps behind,” said Yarrow. What else could explain the act of rampaging through the supermarket and “greedily grabbing the last can of Spam”?

“It starts with a normal impulse to stock up on things that might not be available for a few days,” Yarrow said. “Panic hits when the stores are jammed with other shoppers and the shelves look a little bare. It’s not so much a thought as it is an impulse that hits, and it’s associated with the caveman parts of our brain that take over when we perceive we might be in physical danger. We are prewired to fight for food when we sense that resources are scarce.”

Afterwards, we’re likely to look back on our behavior with puzzlement, and perhaps embarrassment. “Shoppers are going to find that canned food in the back of their pantries someday and wonder what they were thinking,” said Yarrow. “The fact is, they really weren’t thinking. Primal brain took over.”

Try to keep this in mind when, inevitably, the next “historic” storm is on the horizon and your supermarket seems to have been invaded by hoarding barbarian masses. By then, however, it’ll probably be too late. You’ll be in the store, not thinking, and instead following the primal impulse to race to get the last loaf of bread before it’s gone.

Speaking of which, anyone have any good recipes that involve Spam? Somehow, I have a bunch in the pantry, though I don’t remember even buying them.

Your browser, Internet Explorer 8 or below, is out of date. It has known security flaws and may not display all features of this and other websites.

Learn how to update your browser