When it comes to whether money can buy happiness we are able to look at a few studies showing how we can more efficiently spend our money and time. Studies show that people who spend their money on experiences tend to report greater satisfaction. This doesn’t even have to be going out to do something special. It can be a material possession that facilitates having an experience. Buying things for status or aesthetic value tends not to give the same positive benefits.
- Experiential purchases such as travel and entertainment typically prove more satisfying than purchases of physical items.
- Amit Kumar and his team carried out research on 8,000 American adults to determine whether experiential or material purchases provide more happiness.
- Maslow’s Hierarchy of Needs suggests that this inclusion is probably not true of those whose basic physical needs are barely filled.
“Notably, this research is based on a demographic with enough disposable income to choose between buying material possessions or experiential purchases.”