There’s a continuum when it comes to spending and happiness. On one end, there are the flashy, momentary thrills. On the other, there’s spending that actually fosters lasting joy. The big question is: where does your spending fall? Are your dollars moving the happiness needle forward, or are they just fueling short-lived rushes?
Let’s break down the three main ways we spend—and what they really do for our happiness.
1. Cheap Thrills
On the left side of the continuum is spending on things. The nice car. The luxury handbag. The house that makes your neighbors jealous. Sure, these things make you happy—but only for a little while.
Why? Hedonic adaptation. That’s the fancy psychological term for our brain’s ability to get used to pleasure. The joy of buying something new fades fast. You can buy as many things as you want, but the dopamine spike is fleeting. That’s why it’s called “cheap thrills.” They’re fun, but short-lived.
2. Experiences
Move a bit to the right, and we enter the world of experiential spending. This is the “memory dividends” territory, as Bill Perkins puts it in Die With Zero. Experiences—travel, concerts, unique adventures—can bring more happiness than material possessions, and the data backs it up.
Studies consistently show that people rate experiential purchases as happier than material ones: roughly 57% for experiences versus 34% for things. That’s a big gap.
But experiences come with a caveat. They’re often bucket-list items: a trip to Italy, the Super Bowl, a skydiving adventure. The thrill of planning, experiencing, and reminiscing is real—but it’s also temporary. Over time, memories lose their shine, and you find yourself on a treadmill: “What’s next? What’s the next thing I’m going to do?”
Experiential spending is a step up from cheap thrills, yes—but it’s not the finish line. It’s satisfying in the moment, but it doesn’t lead to enduring happiness.
3. Spending on Becoming Your Best Self
Here’s where things get interesting. The right side of the continuum is about spending with intention: money directed toward growth, skill-building, and becoming a better version of yourself.
This is the kind of spending that lights you up. Little p-purpose, as I like to call it. Not just a rush, but a deeper, more sustainable form of joy.
And here’s the crucial truth: you don’t become your best self just by spending money—or even by achieving external markers of success. If you want to be a writer, you write. If you want to climb Mount Everest, you climb. Whether or not you “win” doesn’t matter as much as engaging in the process.
Money is a tool that can help. Want to be a better basketball player? Hire a coach. Want to be a better writer? Join a workshop, hire a coach, or commit to daily practice. Want to be adventurous? You don’t need to book Milan flights; you can explore your own city, meet new people, and try new activities.
This is the essence of spending that truly enhances happiness: using resources to do what matters, to become the person you want to be.
The Secret: Less Can Be More
Here’s the kicker: sometimes, you don’t even need money to spend wisely. The best form of spending—investing in yourself—is often free, or at least inexpensive.
You can go to Milan, yes, and it’ll cost a lot. Or you could buy a solid pair of hiking shoes and explore your own backyard. The key is doing the things that align with who you want to become, not how much you spend on the process.
Enduring happiness comes from experiences that transform us, not just thrill us. And transformation doesn’t have a price tag.
Where Do You Fall on the Continuum?
So, let’s zoom out. There’s a continuum:
Cheap thrills: flashy, momentary dopamine hits from buying things.
Experiences: fun, memorable adventures that fade over time.
Becoming your best self: intentional spending that fosters growth and aligns with your purpose.
Ask yourself: are your dollars moving you toward lasting happiness, or just fueling temporary highs? And remember—the most meaningful spending often costs less than you think. It’s less about the money and more about the choices you make, the actions you take, and the person you’re becoming.
Money can buy happiness, but only if you know how to spend it. The question isn’t how much you’re spending; it’s whether your spending is moving the ball forward.
So, what’s your excuse now?
Did you catch this week’s episode of Earn & Invest (Click to listen)?
The Purpose Code is Now Available!
They are all forms of anticipation.
We each have our own brain wiring. Generalities are pretty meaningless