While most of us invest a lot of time and thought about how to improve our finances, we do not tend to spend quite as much time looking at how our finances can improve our lives. But research is showing that not all wealth is equal, with some spending having a greater impact on happiness than other spending.
Here are our top five ways to get more enjoyment from your money:
- Spend more on experiences
It might seem as if the better way to spend your hard earned cash is to splash out on material goods you can keep, rather than experiences that come to an end. However, research shows that this might, in fact, not be the best strategy.
Over time, we become used to the material goods we own and the pleasure we gain from them begins to diminish.
With experiences, however, comes variety and so we don’t get used to their positive effects. Instead we enjoy a sense of anticipation and then happy memories afterwards.
- Pay for experiences beforehand
It can be wonderful to splash out on a once in a lifetime experience, but one way to tinge the enjoyment you get from that experience is by worrying about the money you have spent on it.
However, if you pay for the experience well in advance, you will tend to find that you no longer associate the experience with the money you have paid for it.
- Rent more
It really could be better to rent a Ferrari for a weekend than to buy one and grow accustomed to it.
One of the reasons that it is better to spend more on experiences is variety and a consequence of this is that it could be better to rent the material goods you need for great experiences than to actually buy them.
- Treat yourself, strategically
Research has shown that by strategically buying small treats, you can boost your mood temporarily, and several small treats will have a greater effect than splashing out on an expensive treat.
- Save your money
Being thrifty and thinking carefully about the things we buy can be a good way to really appreciate their value and ultimately to get the most pleasure from them.
