Will Spending Smarter Make You Happier?
Tue, Jul 13, 2010
Do you remember getting a new bike as a kid and adoring the newness of it? You rode it up and down the street. You definitely made sure you took good care of it by not getting it dirty or putting any scratches on it. But after a while the newness wore off and your bike was thrown down in the yard as you ran around and played with your friends. It was just a bike at that point and your mom or dad probably had to remind you to take care of it. Today, you might be able to relate this same feeling to buying a new car with the clean smell and perfect interior. But after a while it’s just a used car that gets you from point A to B.
Why do we have these feelings? Dan Airely, a behavioral finance expert, says it’s because we spend money on things we easily get used to. In his Money magazine article he says the answer is in spending on things you won’t get used to such as a vacation.
If you’re deciding between a sofa and a vacation, go for the vacation. You’ll quickly get used to the sofa, but a vacation will bring long-lasting memories.
I suppose it’s a natural feeling to get used to a material item which causes us to behave in this way. Certainly things get older and we tend to look at them differently. But, isn’t that a behaviour which can be corrected? It’s all in having the right perspective. Here are a few thoughts.
1. Learn contentment. Just because something has been around for a while doesn’t mean can’t appreciate it. As an example, I’ve had the same TV in my living room for 10 years. Still seems to be working fine and it sure is a lot cheaper than spending a couple thousand dollars on the latest flat screen.
2. Just because items get older doesn’t mean we shouldn’t value them the same as if they were new. It’s a matter of financial stewardship, right? If everything belongs to God we should take care of these entrusted resources as gifts and blessings.
Will spending smarter, make you happier? Nah, I don’t think so. Spend wise on what you need (regardless of whether or not you get used to it), be content with the product’s usefulness and take care of it until it wears out.
What do you think about this idea of spending smarter to be happier?
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Tags: Money and Happiness, Spending
I think spending money makes people happy because it is short term gratification for them
I completely agree with you. The instant gratification definitely plays into these feelings! Once the newness wares off it’s on to the next thing to try to get the same gratification. That’s why the articles suggests spending on lasting memories.
People spend money for many reasons; necessity, want, depression. I often find myself “spending” to fill a void in life, it just makes me feel better. Next time I feel the urge to splurge, I will look at that closet full of shoes and remember that another pair won’t change a thing!