My Tips Towards Wealthy

Monday, September 20, 2010

The psychology of spending

We adapt to Stuff faster than we adapt to new experiences. We may buy a new iPod, and after few years we became adapt to that. But a cooking class, a vacation, an exhibition — these experiences are all complex and take time to digest, mentally and emotionally. When we do them with friends or loved ones, they become part of our relationships with those people, adding yet more layers to the experience and the memories that come out of it.

Frugal happiness seekers can make use these principles to their advantage. Actually it doesn’t take a lot of money to seek out new experiences. Just going for a walk down the beach with your wife can provide plenty of happiness, with no price tag attached. Always keep in mind that a series of small luxuries is worth more happiness than one large splurge.



Buying one large item gives you a burst of happiness that quickly dissipates. While over time you’ll also adapt to the flavors at that restaurant you love or the joy of having flowers on your desk at work, a variety of small indulgences will give you many little happy moments.

Usually, we can get more happiness out of large purchases by saving for them in advance, rather than buying them on credit. It’s not simply that being debt-free is a happy way to be. You will also get the pleasure from anticipating the purchase of your house near your office while you’re saving up for it. Once you have your new house, you’ll enjoy it more knowing it’s the fruit of your hard work as a saver.

If we know how to spend it right, money can be a great tool for getting the most out of our experiences and our time with loved ones. That means putting our money where our hearts are, spending on the activities and people we love, not the Stuff we’re told we have to have. Ultimately, it’s our experiences in life that make us happy, and the relationships we have with those who share our journey.

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