Study Finds The Happiest People Spend Their Money on These 3 Things

How to Spend for Greater Well-Being

Happiness may depend less on how much you spend and more on where you direct your money. Three types of spending are linked to more lasting well-being:

• Choose experiences over possessions. Trips, concerts, and meals with loved ones can create memories and strengthen connections. The pleasure of material goods may fade as you get used to them.
• Pay to save time when possible. Outsourcing chores or tasks you dread can free up time for activities that matter more to you.
• Spend on other people. Gifts, shared meals, and other generous acts may bring a stronger happiness boost than spending the same amount on yourself.

Suggested Practice

Review your spending from the past month and compare it with these three categories. The goal is to redirect money—not necessarily spend more—toward things associated with more lasting well-being.

Presenters and Sources

The video names researchers Elizabeth Dunn, Daniel Gilbert, and Michael Norton, and mentions the Better Newsletter.