TEDx speaker Michael Norton offers his advice on buying your happiness.
Spend money on experiences: According to Jasper Bergink, commenting on the five principles on happy money, it’s not material goods, but rather, the special moments in our lives that we cherish. No matter what we buy, we adapt to material goods quickly. Memories of special moments spent with fun people, however, don’t fade. Therefore, Norton’s advice is to go see a friend that you haven’t seen for a long time when the opportunity arises, and accept a monetary loss to book that great trip to Latin America. The fulfillment you’ll get will be a lot higher than for any luxury good purchase.
Spending money on others: A second way to ‘invest’ money in happiness is to spend it on others. In Norton’s talk, he explains the experiment that lead to this conclusion. And to test it, they gave money away.