“Money cannot buy happiness” is one phrase that we’ve all heard. But in actuality, we all spend money; for most of us, it is a finite resource. So how can we spend our hard-earned money to make us happy? When you make your next purchase, consider the beneficial insights from psychological studies about the relationships between wealth and happiness.

  1. Being Rich Isn’t Necessarily the Way to Happiness. 

Happiness is influenced by money. Ask anyone who does not have it. For example, a handsome salary can help us live in safer homes, receive better nutrition and medical care, and have fulfilling jobs. The positive effects of money, like buying your dream house, are frequently offset by the negative effects, like working long hours or in more stressful jobs to maintain that income.

  1. Doing Makes us Happier than Having.

Most people believe that material possessions will bring them greater happiness than experiences. Physical items, like the most recent iPhone, handbag, or automobile, last longer than activities like attending a concert, taking a cooking class, or taking a vacation. We are joyful when we buy goods, at least in the short term. Yet, with time, we become accustomed to new things, and although they may have made us joyful and enthusiastic, they gradually become the new normal and disappear into the background.

Yet, the joy from spending money on activities tends to grow over time. We frequently share our experiential purchases with others, which is one reason.

  1. Consider Spending Money on Others. 

Most people believe investing in themselves would result in greater happiness than investing in others. Nevertheless, when researchers measure people’s happiness before and after they spend their annual bonus, people report being happier when they give the bonus money to charity or spend it on others rather than themselves. Regardless of the size of the bonus, this happens. This phenomenon may be partly because helping others helps us feel good about ourselves.

Thus, consider whether this purchase will make you happy before taking out your wallet or clicking to place an order online. Think again if it will put your fundamental requirements in danger. If you have any extra cash, consider booking a trip or enrolling in a class to learn a new skill. Furthermore, remember that spending money on others or making charitable donations may make you feel better than spending it on yourself.