Thursday, January 6, 2011

DAY 101 - HOW TO SPEND MONEY AND MAXIMIZE HAPPINESS

Day 101

What do you think would make you happier:  buying a new sofa or going for a weekend up in the country or in New York City? 

We already know that money cannot buy happiness on it’s own.  However, if you have to choose how to spend your money, you might as well select the expense that will provide you with the longest lasting feeling of happiness.

A study conducted by Ryan Howell from San Francisco State University concludes that people feel happier when they spend their money on experiences rather than on objects.  When you purchase something, it can initially provide you with great joy, but with time, any material good will blend into your life and become yet another ‘thing” you own.

Consumption often leads to more consumption.  Once you acquire something and the initial joyful ‘rush’ is gone, you can feel the need to get something else to recreate that sensation.  It could even become slightly addictive.  Without being shopaholics, we can all potentially and occasionally get trapped in the webs of consumption. If I look at my own life, a lot of the things that made me happy upon purchase either don’t really thrill me anymore or I’ve given away.

Experiences are different.  If you go on a trip, to the restaurant, to the theatre or on a hike, you will enjoy the moment, but you will also create pleasant memories that you will be able to revisit regularly. 

Experiences don’t need to cost an arm and a leg.   Spending the day in the country, walking in the woods, skating, sliding, going to the museum on a free day are all accessible, cheap activities that you can put in your bank of experiences.

So, next time you have some money available, what will you do?   I, for one, can think of many possibilities!

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