Spend Money On Experiences, Not Things

For most of us, money is a limited resource. But economists agree that the most important thing is not the amount we are paid, but what we do with it. And especially, what we spend it on. It is better to spend money on experiences than things.

It is true that most of our income is used to cover basic expenses. Then we manage to find the money to buy a new mobile phone, or a TV with the largest screen, or a pair of jeans on sale.

Buying things always excites us a little. The unfortunate thing is that this enthusiasm disappears quickly.

Interestingly, there is a branch of economics called the “economy of happiness” . Among other things, the relationship between income, expenses and how satisfied one feels with life is measured.

They have found, based on ample evidence, that more money does not equate to more happiness. So where is the key to happiness?

Buke money on things

Many people spend their extra money on things. They even sacrifice a lot to get them. They cut back on basic expenses or get into debt. Today, this happens a lot with mobile phones, no longer just a communication tool, but a status symbol.

There is fierce competition when it comes to our favorites. Besides mobile phones, this is also the case with other electronic devices. And clothes, of course. Cars are also part of this logic.

And really, branding is important with these things. You do not have a car, but a BMW. You do not have a mobile phone, but an iPhone.

With most of these purchases, comparing ourselves to others is a big influence. We choose a certain brand or a certain thing to be equal or better than those around us.

These objects sometimes define our sense of belonging to a group. But, paradoxically, they also indicate a tension. Objects, especially if they are luxury items, try to provide a distance.

Spend money on experiences

Economists who focus on happiness are convinced that spending money on experiences gives much more satisfaction than spending them on objects. They have studied it, they have measured it. And that is their conclusion.

Thomas Gilovich, professor of psychology at Cornell University, has studied the subject for several years. He found that people get used to objects with extreme simplicity.

Shortly after purchasing them, they begin to become routine, with little appeal. In other words, they become boring. Routine things do not make us happy.

But with experience, the opposite happens. When they are important, they gain value and this increases over time.

Experiences also unite people. Two people may have the same iPhone, but not identify with each other at all. On the other hand, two stamp collectors will feel close.

If you shop with someone, you will not get the same connection with them as you do if you do an activity together, or go on a trip. In this case, the tension due to competition will not be a result, but quite the opposite: understanding and solidarity.

Use on life

We are our experiences. And the experiences that things give us are very limited. Objects do not really have the potential to make us full of joy and a sense of living life to the fullest. Experiences, on the other hand, do.

Even many negative experiences, when treated, turn into stories, even funny. And positive is like real nourishment for our souls.

Several years later we can still remember them and recognize some of the wonderful feelings. They do not wear out over time.

Each experience is unique, unlike mass-produced objects. Even if we go through something similar, it will never be the same. Hence its value.

There are wonderful liberating conversations we will never forget. There are wonderful places that take us to the very limits of awe and wonder. The joy of a meal or time spent with friends is invaluable.

If what we are looking for is to feel better and be happier, it would be nice to reconsider the way we use our resources. Especially our money.

By thinking less about objects and rather spending money on experiences, we may be able to find the path to happiness.