One common piece of advice is to spend money on experiences rather than material possessions. Kristen Duke, a social scientist from the University of Toronto, highlights that experiences, such as holidays or concerts, provide more lasting happiness than material items like clothes or gadgets.

"Going to gigs or on holiday is more memorable and more social than the short-term high gained from buying clothes or gadgets," said Ms Duke. She adds that experiences offer a unique form of happiness known as anticipated joy. "If I'm anticipating going on vacation to Hawaii, I can imagine the sun shining on me, and I get a little dose of that happiness," she explains.

The Benefits of Hybrid Purchases

While experiences can lead to long-lasting happiness, their fleeting nature can also be a drawback. Ms Duke suggests that hybrid purchases, such as musical instruments or video games, combine the best of both worlds. These purchases can be both material and experiential, allowing people to enjoy their benefits repeatedly, thus extending the happiness they bring.

Minimalism and Lasting Happiness

Author and minimalist Joshua Becker takes a different approach, advocating for a simpler life. For over 16 years, he has practised minimalism, which involves cutting out distractions to focus on what truly brings joy.

"I own fewer possessions so that I can free up time, money, and energy for the things that actually matter and bring real happiness," Mr Becker says. By focusing less on material goods, Becker has been able to spend more time with his family, creating memories that last longer than the satisfaction of owning possessions.

The Joy of Social Spending

Spending money on others can also be a source of happiness. Lara Aknin, a professor of social psychology at Simon Fraser University, has found that using money to benefit others can boost personal wellbeing. "Humans are very social creatures, and gifts we give to others allow us to build, strengthen, and maintain relationships that are important to us," she says. Even small, thoughtful gestures can lead to a sense of fulfilment.

Navigating Choice Overload

Interestingly, having more options can sometimes detract from happiness. According to Ms Duke, having too many choices can lead to buyer’s regret, as we might imagine that an alternative product could have been better. Reducing options through online tools or focusing on key priorities can help prevent this feeling of regret and increase satisfaction with purchases.

The Dangers of Compulsive Spending

For some, the pleasure of shopping can become addictive. Nuno Albuquerque, an addictions counsellor, explains that shopping can trigger the same dopamine-driven pleasure as gambling or drug use. "We know that buying items or spending money can have an effect on the brain, on the dopamine levels," he notes. However, this short-lived high can lead to a cycle of regret and guilt, particularly when it results in financial strain or relationship issues.

Ultimately, the saying “happiness is an inside job” rings true. While money can buy happiness, it depends greatly on how it's used—whether through creating memories, strengthening social bonds, or simply finding joy in giving.

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