I believe that the key to financial security is to live below your means and maximize your savings.
But what should you spend your money on after your basic needs are met?
An extensive amount of research shows that experiences bring people more happiness than material goods. This can be explained by a number of reasons:
- The happiness spike for material items is short-lived, whereas experiences produce joy during the anticipation of the experience, the actual experience itself, and then from the memories afterwards.
- Experiences tend to bring us together with other people, and social connection is a major key to happiness.
- Experiences often lead to better stories and conversations, helping us to relive the experience and bond with others (even if they weren’t there for the actual experience).
- Experiences are more likely to be defining moments in our life, and associated with how we see ourselves or who we want to be.
- Experiences are often more unique and distinctive when compared to material items.
So instead of buying a new shirt or watch, or even a new car, consider these experiential purchases instead:
- A special meal
