Ikea Effect: Make People Happy by Putting Them to Work

The gist: If you want to be happier, do things for yourself. If you want to make people happy, help them do the same.


A home down the street from me went up for sale the other day. I like to track the market activity around me, so I stopped by the open house to meet the realtor. When I got to the door and saw the asking price, my jaw dropped.

They’re asking how much for… that!?

I immediately knew they were asking at least $30,000 too much. “How could they possibly think they’ll get that much for it?” I wondered.

The realtor greeted me and told me a bit about the owner. She had the home built herself and customized every aspect of it to her taste. She picked the carpets, countertops, fixtures, tiles, and paint colors. She’d really poured her creative energy—and a lot of labor—into the place. She saw it as a masterpiece.

Unfortunately, I saw a house like any other but with paint colors I’d never choose.

The seller experienced what’s called the Ikea Effect—a psychological phenomenon that explains how we come to love and value the things we put effort into.

In this case, our home seller was experiencing the negative side of the Ikea Effect, but there are a few positive ones you should know about because they can, in fact, save you a lot of money (or even make you a lot) and add an extra layer of happiness to your life.

Making Excuses Zaps Your Motivation. So Don’t Do It.

When you make excuses for your hardships, it zaps your motivation and power to recover. To succeed in the long-term, take responsibility for failure even when its not your fault.