Yes, spending money on experiences makes most people happier than spending it on things, because experiences become part of your story while objects fade into the background. A 2020 study of 2,635 adults found that happiness was higher after experiential purchases than material ones in every category, even after accounting for what the purchase cost. A second study of 5,254 adults found the same pattern.
| Spend on | Why it works | Why it fails |
|---|---|---|
| Experiences | Memories, stories and shared moments last | Less effect when done alone or to impress others |
| Things | Frequent small bursts of pleasure | You adapt quickly and want the next one |
This may seem odd to read on a site about the finest things money can buy. But we believe money can make you happy. The trick is knowing what to spend it on. If you tell yourself that money does not matter, you may be falling into one of the excuses that stop you from being great. Our point is simpler: where the money goes matters.
Why do things stop making us happy?
Buying something new gives a quick lift, similar to a coffee or something sweet, and then it fades. Psychologists call this the hedonic treadmill: people tend to return to a stable baseline of happiness after good or bad events. To keep the feeling going, we buy more, often things we do not need.
Think about it. At the end of your life, will it matter that you had the newest phone while your friends were still using last year's model? Of course not. The smart and rich figured this out early, which is part of why people like Bill Gates and the late Steve Jobs became known for simple, repeated wardrobes.
Do diamonds break the rule?
A diamond ring is expensive for a reason, and it is not the stone. The excitement comes from the memories attached: being in love, looking your best, a day you will never repeat. In other words, the most lasting “things” are really experiences wearing a small disguise.
How should you decide where to spend?
Search for happiness, not for fame
Some people buy things to stand out, others buy the same thing to fit in. Chasing approval is a trap, because you cannot fit in and stand out at once. When you aim for happiness instead of admiration, you no longer need the approval of those around you and can spend on what fulfils you.
Remember that happiness can be cheap or free
Some people throw money at happiness and still cannot find it. Often it sits in small things: sunlight on water, your mother's smile, a stranger thanking you for a kind gesture. Research also suggests the experience benefit shrinks when you do it alone or when you are highly materialistic, so the shared, simple moment can beat the expensive solo one. Meditation is a free way to make sense of the worries that take up space in your head.
Try new things
Think of a box of chocolates. The first piece is the best one, the second is a little less good, and by the tenth you no longer feel pleasure. The same thing happens with happiness. New experiences, new places and a bit of healthy risk keep your memories growing instead of repeating.
Choose experiences that end
The best experiences are memorable because they end. You cannot relive them, but they turn into memories and stories you can share a million times. This is also why the freedom to travel has become a new measure of success: you still buy the plane ticket, but the experience is yours alone.
What does this mean for your next purchase?
Before you buy, ask three questions. Will I still care in a year? Will I share this with someone? Does it add a story? If the answer is yes to the last two, it is probably worth it. If you do want a physical purchase, pick one you will use every day and that carries meaning, not one that only signals status.
What makes people buy things they do not need to impress people they do not like? Tell us in the comments.
Keep reading
- 10 luxuries you can only give yourself: the experiences that no money can buy for you
- 15 things money cannot buy: what to focus on once the basics are covered
- 15 dumb ways to spend your money: the opposite list, and a useful check before a big purchase
FAQ
Does spending money on experiences make you happier than buying things?
On average, yes. A 2020 study of 2,635 adults found that happiness was higher after experiential purchases in every category, and a second study of 5,254 adults found the same.
Why do material purchases stop making us happy?
People adapt quickly to new things, a pattern called the hedonic treadmill. The thrill fades and we look for the next purchase.
Are there exceptions to the experience rule?
Yes. The advantage is weaker when the experience is solo or when you are highly materialistic, and things you use daily can give frequent small boosts.
Can happiness be free?
Yes. Time with people you love, nature and meditation cost little and often add as much as expensive purchases.
What is the best kind of experience to spend on?
Shared, novel experiences that have a clear end, such as travel, events and learning, tend to create the strongest memories.
How we put this list together
We drew on peer-reviewed research on experiential and material purchases and kept our own opinions clearly separate from the findings.
Last updated: October 2026.
