In the long-term, however, we habituate to new things and even though they may have made us excited and happy at first, eventually the item becomes the new normal and fades into the background. Buying things does make us happy, at least in the short term. Most people assume that “things” will lead to more happiness than “experiences.” Physical objects-such as the latest iPhone, handbag, or car-last longer than say going to a concert, taking a cooking class, or going on vacation. Once our income reaches a certain level and our basic needs for food, health care, safety, and shelter are met, the positive effects of money-such as buying your dream home-are often offset by the negative effects-such as working longer hours, or in more stressful jobs, to maintain that income. However, this only works up to a certain point. Having a higher income, for example, can give us access to homes in safer neighborhoods, better health care and nutrition, fulfilling work, and more leisure time. Being Rich Isn’t Necessarily the Path to Happiness.How can we spend our hard earned dough in ways that will maximize our happiness? Psychological research offers some useful insights about the connections between money and happiness to consider before you make your next purchase. Yet, the reality is that we all spend money and for most of us it is a limited resource.
We’re all familiar with the idea that money can’t buy happiness.