Money is good. more money is better. It's true. Why can't we just accept that?

In other areas of life, we let go of conventional wisdom when science proves it wrong. It's getting to the point where the conventional wisdom about conventional wisdom is that none of it is true. But with money, for whatever reason, we hold on tightly to our misinformation.

You've heard the following three financial "rules" before. We don't know where they came from. We just know what the latest research says: They're dead wrong.

Stupid Money Maxim #1: Money can't buy happiness

According to a recent study by the Washington DC-based Pew Research Centre, happiness rises in a nearly straight line through eight levels of annual income: Only 23 per cent of people earning less than $20,000 a year say they're happy, whereas 50 per cent of those making $150,000 annually can't wipe the smiles off their faces. This is called the absolute income effect. It works in reverse, too: People earning less than $15,000 a year were five times more likely to be unhappy than those earning $75,000 or more.

That's good news for rich people. But what if you're sentenced to a lifetime of middle-class living? Luckily for you, there's something called the relative income effect. In 2006, researchers at Princeton University found that your happiness increases in lockstep with the amount of money remaining from your paycheck after you pay your monthly bills. "Once you earn enough to cover your basic needs, being much richer doesn't make you much happier," they reported in the journal Science.

So how can you make sure your personal profit-and-loss statement is always in the black? Certified financial planner J.J. Burns offers three easy ways.

1. Pay off your mortgage faster.
"Banks compound interest every day, so not waiting till the due date will save you thousands over the course of your loan." Another trick: Split your payment in half and make your repayments fortnightly. It will cut at least four years off the life of a 25-year loan.

2. Guarantee yourself a healthy return.
"Every time you receive a raise, give your superannuation one, too." For (legal) tax effectiveness, there's no better place to park dough for retirement. "And, of course, that money should grow."

3. Invest in counselling.
"Depression and anxiety are bad for your wallet, too." According to mental health charity SANE Australia, depression costs the workforce an estimated $3.5 billion a year in terms of lost productivity and absenteeism. That's $3.5 billion of raises that weren't given and businesses that weren't started. "Seek help. There's no more direct way to invest in your own happiness."



Stupid Money Maxim #2: Money can't buy you love

A survey of 190 women published in the Journal of Personality and Social Psychology reveals that women looking for a mate are most attracted to power and financial resources, followed by kindness and intelligence. Women seeking a one-night stand, on the other hand, want muscularity and masculinity most (actually, period).

Love doesn't come cheap, however. In 2007, researchers at the University of Chicago asked 10,434 women - all of whom had set their ideal man's height at 6 feet (182 centimetres) - what it'd take to fall in love with a 5'2" (157cm) suitor. Their collective answer: He'd have to earn at least $270,000 more per year than their ideal.

Why are women so hot for money? Evolutionary biologists have long theorised that females naturally seek mates who can provide for the family. But Arizona State University researchers also found that because women have been stuck under a glass ceiling at work, they're attracted to men who can help them bust through.

So go ahead, use your wealth to woo. Just don't let it come between you later - financial issues are behind nearly 3 in 5 failed marriages. Here's how to money-proof your relationship, according to Dr Jonathan Rich, psychologist and author of The Couple's Guide to Love & Money (New Harbinger, $48)

1. Create yours, mine, and ours accounts.
"The 'ours' account is for shared expenses like the mortgage, utilities, and food. The other accounts are for personal expenses such as entertainment. Keeping separate accounts helps to avoid needless nitpicking, and gives both of you some financial freedom."

2. Keep your eyes on the horizon.
"Sailors give this same advice to the queasy. Close objects bob up and down, but things in the distance remain stable. Likewise, focusing on small, day-to-day money issues can strain your relationship. Talk over the big, long-term goals, agree on a plan, and then check in every month to make sure you're still on course.

3. Reap her riches.
"Men thrive on rivalry; women don't. So stow your competitive spirit when it comes to financial matters. Instead, think of it this way: Her success is your success. Her raise is your raise. Cheer her on, but don't race her to the finish line. Because even if you win, you lose."

Stupid Money Maxim #3: More money = more problems

This maxim has been gaining steam in recent years, as lottery winners take to the airwaves and complain about how complex their lives are now. Uncle Len wants to pay off his truck, cousin Pete hopes to start a mail-order bait business, and poor little Johnny is being harassed at school.

It's true that a sudden windfall can blow a person's life off course. Psychologists even have a name for it: "sudden wealth syndrome." But on the whole, according to a British survey, lottery winners are doing just fine: 55 per cent say they're happier now, and 43 per cent are just as happy as they were before. The more money they won, the happier they are. Of married winners, 95 per cent are still with the same partner. And 90 per cent report having the same best friend.

There's a decent chance you'll hit a jackpot someday, if you consider all of the potential sources of sudden wealth - investments, job promotion, sale of a home or business, legal settlement, retirement disbursement, inheritance. "Coming into money should simplify your life, not make it more complicated," says Susan Bradley, a financial planner and author of Sudden Money: Managing a Financial Windfall (John Wiley, $42). Here's Bradley's 6-step plan for making sure it does.

Step 1. Pay off your debts, such as car loans and credit cards.

Step 2. Take care of any home repairs or medical procedures you've been putting off.

Step 3. Set aside 5 to 10 per cent of what's left for something fun, like a holiday or a new car.

Step 4. Take another 5 to 10 per cent and give it to charity.

Step 5. Invest the rest of the money in your future. Think super or a savings plan for your kids' education.

Step 6. Watch your money grow. An annual 10 per cent rate of return (the long-term stock market average) will double it every seven years.

Got a money issue? Ask our expert, Noel Whittaker.