Source: wvuafm.ua.edu

Have you ever spent money on an incredible experience, such as an unforgettable concert or a travel vacation? Hopefully, the answer to this question is yes. I have often heard that spending money on experiences is much more beneficial than spending money on possessions. However, I have always wondered… Is this really the case? After doing some research, I found that studies do indeed prove this to be true.

In a study designed by Ryan Howell of San Francisco State University, 154 university students were examined. The subjects were asked to answer questions about a purchase “they personally made in the last three months with the intention of making themselves happy.” After answering these questions, it was clear that those who spent money on an experience rather than a new possession demonstrated greater satisfaction and higher levels of long-term happiness.

One reason for this is that the “joy” of acquiring a possession will quickly fade. Often, the most exciting part of a new purchase is the fact that it is new. For example, when one purchases a new car, they are initially thrilled. Ultimately, however, you will see the car each day, and as its newness fades, it will become much less exciting. As expressed by countless psychologists, this is not the case with experiences. Not only do they provide the opportunity for learning valuable lessons, but they also allow for the development of long-lasting memories. This will have an incredibly powerful impact on long-term happiness.

It is also important to note that experiences are typically shared with other individuals, whether it be family members, friends, or a significant other. By purchasing an experience, we are making a valuable investment in relationships, which will make us much happier than any new possession ever could.

This video featuring Harvard Business School Professor Michael Norton explores the question further:

It is clear that experiences often make us emotionally healthier, having a true impact on our long-term happiness. They even have the power to open our minds and shape who we are as a person. These experiences can be even more powerful when they are shared with others. Therefore, if you soon find yourself with a little bit of extra money to spend… Consider an experience!