Buy experiences, not things!

The other day, I was looking for something in the closet when I stumbled on an old toy I had bought for my daughters some time back. The toy had been abandoned long ago as the girls lost all interest in the once-novel item. When I first bought it, they were so excited and couldn’t put it down. A few days passed, and interest gradually faded until it was completely forgotten in favor of more interesting things.

It seems this happens to many of us when we buy material stuff. We assume we shall be happy with the new phone or the new car forever. But over time, we lose interest, take our stuff for granted, and seek new shiny toys.

The old adage that money can’t buy happiness appears to be true. However, this is not entirely true. As it turns out, if we instead used our money to buy experiences, we would be happier. I found this idea in an interesting book called Happy Money by Elizabeth Dunn and Michael Norton, which looked at the science of happy spending. The authors demonstrate through various experiments that spending money on experiences makes us happier than buying stuff.

Picture this: you have a choice between buying a flashy new flat-screen TV or taking a trip to see the majestic gorillas in Bwindi. Fast forward a few months, what will you remember more fondly? The TV that’s just another object in your living room, or the incredible adventure of trekking through the misty forests? The authors argue that spending money on experiences gives us stories to tell and memories to cherish way more than material goods ever could. Experiences also enhance social connection which has been shown to be one of the biggest determinants of our happiness.

The temptation to buy things to make us happy is pervasive. However, the science shows that it is better to spend on experiences, especially with the people we love. So try and spend more on experiences. It could be a simple date night with your spouse or a local trip with your friends. It could be a family staycation or a visit to the local museum or cinema. Find ways to invest in experiences, and you will soon discover that, indeed, money can buy happiness.