Buying experiences: the optimal happiness strategy for money

Can money make us happy if we spend it on the right purchases? A new psychology study suggests that buying life experiences rather than material possessions leads to greater happiness for both the consumer and those around them.

The study demonstrates that experiential purchases, such as a meal out or theater tickets, result in increased well-being because they satisfy higher order needs, specifically the need for social connectedness and vitality -- a feeling of being alive.

"These findings support an extension of basic need theory, where purchases that increase psychological need satisfaction will produce the greatest well-being," said Ryan Howell, assistant professor of psychology at San Francisco State University.

San Francisco State University (2009, February 17). Buying Experiences, Not Possessions, Leads To Greater Happiness. ScienceDaily.