How to Buy Happiness
October 16, 2012 | Posted by Roshawn Watson under Uncategorized |
By: Roshawn Watson
Money doesn’t buy happiness, or does it? Actually, it may be overly simplistic to presume that money doesn’t influence happiness. For example, it is a fact that there are psychological and biological (including dopamine and insula) rewards associated with spending money, particularly if you are a spendthrift. However, we also know not all purchases are created equal. For instance, if you derive pleasure (rather than pain) from your purchases, do you get a greater sense of reward from a series of small purchases or from a single big purchase? According to numerous studies, the answer depends largely on the type of purchase(s) you are making. Today’s article will discuss how you can buy happiness by augmenting the type of purchases you make.
Related Article: Tightwads and Spendthrifts
Material Purchases Cause Stress
Did you know that there is an emotional burden to making material purchases. Apparently, purchasing trinkets and doodads (such as iPads and smartphones) are associated with increased stress and temporary satisfaction. This happens for numerous reasons. First, we’re more likely to interrogate such purchases to ensure that we get the best deal. With the abundant options available, this in itself can be an exhausting process.
It is the preoccupation with possessions, more than anything else that prevents us from living freely and nobly. Bertrand Russell
Additionally, after we make material purchases, if we subsequently find out that we missed better options, our happiness often will quickly give way to buyer’s remorse. For example, I remember looking at laptops last year. I saw what appeared to be a fabulous deal. It had great reviews. Amazon was the most competitive with respect to pricing. I was just about to pull the trigger UNTIL my wife happened to show me the Target sales paper from 2 weeks earlier. The computer, MY computer, was on sale for 25% less. Of course, Target’s sale had already come and gone. Amazon was now the best deal, but just I couldn’t purchase it anymore, not at THAT price.
Interestingly enough, some data suggest that we are even prone to jealousy of those who capitalize on deals that we couldn’t. Additionally, material purchases can adversely affect us biologically. For example, such purchases provide us with anticipatory highs. They literally activate part of the brain’s reward circuitry. You would think that this would be a good thing; however, the problem is upon their obtainment, our desire for them is satiated, and the “high” dissipates. This phenomena is known as hedonistic adaptation, which is when the joy and excitement obtained from purchases diminish with time. Once it loses its novelty, the thrill is gone as well. Thus, many thrillseekers repeatedly make material purchases in order recapture this pleasure.
Related Article: Is Extreme Frugality for You
Experiential Purchases
In contrast to material purchases, experiential purchases (purchases for experiences) are less stressful, are remembered fondly, and satisfy important needs that bring lasting happiness. When we purchase experiences, we are less likely to critically critique them before, during, and after the purchase. We recognize their uniqueness and value the ways that they enrich our lives. It’s is why people will pay hundreds of dollars to go to concerts when they can instead buy the cd for less than $15. We are likewise less prone to compare experiential purchases to other purchases, as we allow them to stand on their own.
A mind that is stretched by a new experience can never go back to its old dimensions. Oliver Wendell Holmes, Jr.
Moreover, experiential purchases are often remembered more fondly afterwards than during the actual experience. How often have we reframed experiences that we previously took for granted as we recognized just how truly remarkable they were? For example, people often relabel their high school or college years as “their best years,” but how many felt that way during that often awkward time. Experiences also provide memory capital for re-living the moment, so they are not as subject to the same boredom we experience after we get material purchases. They additionally appeal to our psychological needs. Experiential purchases, such as going out to dinner or the movies and even going on that special vacation, satisfy higher order needs. According to the need theory , we crave vitality (feeling alive) and social connectedness, and that’s precisely what experiential purchases tap into. Experiential purchases provide us with the greatest sense of well-being. Material purchases simply pale by comparison!
Incidentally, not all types of experiential purchases are the same. Experiential purchases that lend themselves to sharing , rather than individual experiences, tend to result in greater happiness.
Small Purchases or Big Purchases
New data suggesting that a series of small purchases is associated with a similar degree of happiness as a single big ticket item must be viewed within the context of the “material versus experiential purchases” framework. The prevailing thought is that smaller (low cost) purchases, such as dinner and a movie, may more frequently lend themselves with shared experiences, which in turns brings happiness. In the study, participants were most concerned with who they would share the experiences with for smaller (lower cost) purchases. However, for large (high cost) purchases, participants were more concerned with the types of purchase and the prices, which makes sense but also may suggest that these purchases may lead to less happiness. Or course, big ticket purchases can also be for shared experiences, such as family vacations. Thus, review the study results with these points in mind.
I love sharing my stories and experiences with people and connecting to them on both a humorous and emotional level. Tori Spelling
Concluding Thoughts
The takeaway is that it is not the dollar amount that is associated with happiness, despite popular belief. While it is true money buys fun, fun is not the same thing as happiness, and the amount of fun one has is not necessarily proportional to the amount you spend. The perfect example is how Trent (The Simple Dollar) loves board games. Dave Ramsey has mentioned that he does as well. Such games don’t cost much money but are big on interaction and can be done very frequently, so my guess is that this “small” purchase results in a lot of happiness.
Moreover, be particularly careful how you frame your purchases too. For example, if you frame a small material purchase, such as buying a new cd as hours of a pleasurable experience rather than obtaining someone’s latest release, you are more likely to derive greater join from it. Who is to say that you couldn’t have a rich life on a small budget, provided that your budget includes meaningful experiences that provide you with a deeper connection with people you care about?
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Image Credit: Mads Boedker
My happiest moments have nothing to do with money! Lack of money can certainly make you unhappy. I always approached spending with a purpose. My wife and I use lists and try to think things through before spending whether small or large amounts. If the purpose is to meet with friends over dinner, then it doesn't matter how little you spend. In fact, you could get together and have a potluck!
Roshawn, you just reminded me about Woody Allen's last movie where he tells someone: ' I know; I understand that you sing for pleasure but there is so much pleasure in money'. More seriously, I have also seen the research showing that buying experience and happenings is more satisfying than buying things. I also experience this one: a thing that gets me when buying things is the stress that goes with finding space for the new thing and deciding whether to get rid of the old. To save some stress we are probably the only family in the western world that doesn't have a flat screen TV – our big chuncky one is still working and long may this continue.
Loved this article btw.
I am most happy when I am spending time with those I care about. To me life is about the memories and experiences you have, not the stuff. Money helps me now to see my family since they don't live near us but that is it. I don't need more than the necessities.
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Your piece reminds me of the book Flow, which details how people spend their best moments in life engrossed in activities they love. I can see why spending money on trinkets causes stress. It actually diverts people from those experiences instead of adding to them.
What you said about learning about better options post-purchase is why I think so many retailers will now give you the difference if you find a better deal elsewhere, pricematch, or even give you the money back if they drop their own prices. They'll do anything to avoid returns!
I absolutely love money and learning about business and finance. However I will say with 100% certainty that the best investments I have ever made are in relationships with people and not wealth building vehicles. The great part about it, is it costs nothing to be or have a good friend. Cheers!
Relationships with people can be a great source of happiness. The costs of true friendship is often time rather than money. In fact, I would be concerned about any relationship that is based on money. Thank you for your wonderful comment!
Very nice as the one thing that makes me that happiest is playing Words with Friends and its free. Buying things usually leads to buying more things are getting upset or stressed out that you didn't get it when it went on sale or that a new version comes out just a few months after you purchased yours.
Great post as usual and liked your observation on stress and searching for the best deal. Refresh my memory, were you a psychology major? I agree with your others comments, buying experiences trumps buying things. Thanks for the reminder, especially during the holiday season!
Most definitely! I love travel, though expensive, I value the experience!
Thanks for sharing these deep thoughts, your text is fully inspirational! I hope people will think about that and after that the're going to open their minds for the real things in life….
This is so true. It is amazing how money can make you feel so happy and at the same time so stressed. The same can be said being without money.
I completely agree with buying items such as ipads causing unneeded stress. I was shopping for deals thought I found the best one and turned out I hadn't lost $30 worth of savings and then beat myself up over it. I would have been much happier not buying the the damn thing!
I can definitely relate to the part about how buying material things is more stressful than spending money on experiences. Experiences allow us to create great memories that we can keep whereas material things mostly just clutter our lives.
Yes, my wife say by the time I make a major purchase she could die. I look at all the angles get various competing quotes, etc. I am sick of the deal by the end but I got the best price.
While purchasing a home is typically quite stressful, for me, it has brought me the most happiness. Perhaps this is because of the experiences that have occurred in the home post purchase? I agree with the points made in the post except I do think buying a home can make one very happy over a long period of time.
Lack of money doesn't necessarily mean unhappiness. Sometimes poor people live happily, more than you can imagine ! Undoubtedly money makes life much easier, But it doesn't buy happiness..
Can never really buy happiness. No sooner then you buy something you either find you could have gotten it cheaper or something better is out. Finding the things in life that truly make you happy are usually the things in life that are actually free.
I do agree with you money does influence how much happiness one have but there is more to it then that. Money on its own can't do anything as a Financial Planner I advise people they need to understand the relationship they have with money. It is sad to see that 85% of people that win money are back to where they started with in five years. If money buys happiness then these people should be happy and successful unfortunately it is the money mind set they have about money that will direct how people will use their money. If they don't change their mind set they will not be able to handle any amount of money.
I have to agree with your quote from Bertrand Russell. Or maybe the old saying that the best things in life are free. You do have to buy things, food etc. but I have to believe that happiness comes from within not without.
Happiness economics suggests that measures of public happiness should be used to supplement more traditional economic measures when evaluating the success of public policy.
making you one of my favorite bloggers!
Experiences with friends and family can build a life of happiness. The cost matters not, the camaraderie and experiencing something together is what is most important to build happiness. The feeling of being alive is essential and breaking out of our routines is a big part of that. We have to make an effort for these things to happen, but it's so worth it!
Bang a tenner on an outside horse and good luck to ya!
Money doesn't buy happiness but it definitely does provide access to experiences. Life is about experiences.
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Interesting perspective. I often give experiences as gifts – tickets to a play, gift certificates for horseback riding, etc. – knowing that the memory of the experience could last a lifetime. However, I'd never thought of viewing my own purchases as an experience rather than an objective.
I'm going to have to give this more thought. Thanks for such an insightful article!
My pleasure Jack. Thanks for such a kind comment!
Money affords us the ability to buy things which we equate to experiences. The key I've found is focusing on experiences.
Money doesn't always buy happiness but like one poster said, it does buy experiences which can open up not only personal opportunities but business opportunities as well. You never know whats hidden behind a door and it is best sometimes to throw caution to the wind.
I enjoyed reading your internet marketing post. I found good useful informative topic on this as I am working on a fashion designing project. Thanks for allowing me to post comment on this good blog.
There is no option for buy happiness and its possible with attention to give your friend and love. We are providing essay writing services oxford university students and international universities.
There is no such thing as like you could buy happiness.But if you got sincere people around you you can be a happy person.
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Of course, not different varieties of experiential buys are the same. Experiential buys that give themselves to imparting , instead of distinctive encounters, have a tendency to bring about more terrific satisfaction.
Encounters with loved ones can develop a life of pleasure. The cost issues not, the companionship and suffering from something together is what is most essential to develop pleasure. The sensation of being in existence is essential and splitting out of our workouts is a big part of that. We have to try for these things to occur, but it's so value it!
Very interesting Title you made of this article.That is really Cunning to catch viewer.Actually i was attracted by this title.Well post you made.Thanks for sharing. 🙂
You are totally right about framing your purchases carefully. Hours of pleasure will last much longer than keeping up with the joneses will. Its very interesting that a few smaller purchases over time can be just as, or more satisfying than one big ticket item. I have always experienced that, but never heard it stated quite so clearly. Thanks for the post!
I really like cash and studying about business and fund. However I will say with 100% confidence that the best investment strategies I have ever created are in connections with people and not developing prosperity automobiles. The excellent aspect about it, is it expenses nothing to be or have a close buddy. Thanks for sharing.
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