Have you ever bought something just because you were bored? Or gone to the mall for a bit of “shopping therapy” as a pick me up after a disappointing day? I know I have. We imagine if we buy just the right thing it will lift our spirits. Our intuition is not far from the truth, spending money on the right things can make us happier.
My recent post Does Money Buy Happiness talks about the difference between spending money for surviving versus thriving. When spent on with purpose, money helps power our happiness.
Here are a few fantastic buys to help maximize happiness:
Great Deal #1 Buying Experiences
Memorable activities can be recalled for decades after the new outfit or gizmos are forgotten.
Our brains are wired to remember the end of events and forget the middle. This is called the recency effect. “Stuff” usually ends in loss: an old worn-out item that’s discarded. In contrast, life experiences can begin with excitement and anticipation and end with satisfying memories.
Great Deal #2: Tools for Living
Not all stuff is “bad” from a happiness perspective. Whenever my grandfather gave us cash for our birthdays, he would advise us to spend it on something “tangible, useful, and long-lasting.” Essentially, he was suggesting what I call “tools for living” – items that you take pleasure in using every day and for a long time. For instance, I enjoy cooking and really appreciate a quality chef’s knife. $100 seems like a lot for a knife…and it is…but I take pleasure in using it every day to prepare meals for my family and friends, and it will likely last for decades. Even my very frugal grandfather would approve of this “investment.”
Great Deal #3: Leaving Your Fingerprints
There’s something magical about making something yourself. When you put time or effort into a possession, you tend to value it more02. Ever notice how much better your homegrown vegetables taste than the ones from the market? The more you work for something, either through physical effort or saving over a period of time, the greater your pride of ownership.
Some call this the “IKEA effect” in honor of the Swedish company that made assemble-it-yourself furniture all the rage. I’m not sure that’s the right label, because I’ve enjoyed building furniture from scratch over the years. But, the truth is that people do value IKEA furniture more than similar pre-assembled furniture because they “built it themselves.”
Great Deal #4: Doing Things for Others
As I mentioned in my blog about money and happiness, intrinsic goals set you up to be happy! You can boost your happiness levels by using money for things like charities, college accounts for the kids, and helping family or friends. Research based on group experiments suggests that spending even a small amount of money on someone else noticeably increases happiness – even a few dollars!
Great Deal #5: Expanding Your Freedom
How much free time can you buy yourself? Studies by psychologists Edward Deci and Richard Ryan demonstrate that having options about how you spend your time can increase your happiness.
Financial fitness means money saved, which is freedom in the bank. You can start doing things you enjoy now without waiting for some point later in life.
Here are some sweet deals on freedom:
- Plan a partial retirement and change jobs to do what you really love
- Take the vacation of your dreams instead of sitting at home, strapped for cash
- Take a mini-retirement or sabbatical
- Change to part-time work or stay home with the kids instead of working
Real Value
People who want to get the most from their life energy look for proven value. If you’ve made some great buys on happiness already, leave a comment and tell us!