The Notorious B.I.G. once declared ‘mo’ money, mo’ problems’ but according to a new book, it’s not how much money you have, it’s how you spend it.
Spending on experiences will make you happier, the authors of Happy Money: The Science of Smarter Spending found, but spending on material things can actually make you less happy.
“People consistently get more happiness from buying experiences, everything from the dream trip in Africa to that special meal out with your spouse, than from buying material things, everything from couches to houses,” co-author Elizabeth Dunn said.
“One of the reasons is because when you buy something, and it’s a thing, it gets worse and worse because it gets old,” co-author Michael Norton explained. “Experiences are funny because you go on them and then when they’re done, it’s over, but our brains remember them as better and better and better. So we get happier over time.”
Watch the discussion to find out Dunn and Norton's five principles on how to spend for happiness.