Studies have shown that it’s more valuable to spend money on experiences than material items. That is, people feel more joy when they get to do something, such as a holiday with the family, a fine dining experience, or a day of adventure. The joy that material possessions bring us fizzles out pretty quickly.
As humans, we compare things constantly. We compare the things we own to the things that other people own. We think, ‘She has a four-bedroom house, my house only has three.’ Or ‘Their house has the newest and best solar panels available, I should get the same ones.’
However, experiences are not as easy to compare. For example, when you ask your friends what they’re doing for Christmas, they might tell you they’re staying home with their family, visiting relatives overseas, or perhaps they’re going to work instead of celebrating so they can make some extra bucks. There is really no way to compare or feel like one experience is better than the other; meanwhile, it’s much easier to compare material possessions.
Studies have proven that, as a general rule, people find more joy spending money on experiences than buying new items. Most of our clients feel the same way, and so do we. (Michael recently took his family to New Zealand on a two-week holiday with the money he saved by not buying a new car!)
When you financially compare an experience to a material possession, as Michael did, it always seems better to go for the experience. And whether you are buying an item for your home or splashing cash on a holiday, careful and considered spending is what it’s about!
