Why Spend Money on Experiences, Not Things

spend money on experiences

Millennials are attributing less and less importance to homes, cars, TVs, and watches. Instead, they are showing more interest towards personal experiences. One reason why millennials spend money on experiences more than on things is that they view ownership differently. For example, young adults of the previous generation were placing more value in a car or a house.

While a lot of millennials’ motivation today is targeted towards creating authentic content for social media. According to the Harris Poll, most millennials are craving for recognition. For example, they are trying to get more experiences to be able to share them with their friends and followers.

This is the so-called FOMO – fear of missing out. It drives millennials to share experiences and to engage with people especially in social media.

The same Poll shows the following results:

  • Millennials cherish the time spent with the loved ones
  • Life events are a great way to create awesome memories
  • Millennials get a spirit of community due to events

So, maybe it’s a good idea to adopt this millennial habit of spending more money on experiences rather than things. Dr. Thomas Gilovich, a psychology professor at Cornell University says,

“One of the enemies of happiness is adaptation. We buy things to make us happy, and we succeed. But only for a while. New things are exciting to us at first, but then we adapt to them.”

The whole idea is that we get used to things and we become no longer excited about them. Let’s take a car purchase as an example. You buy a dream car and you are thrilled about it. But some time passes and owning that car becomes the norm. Some 1-2 years later, you will be longing for another car for sure. In other words, material things cannot provide us with permanent pleasure. They are good for a limited time only.

On the other hand, experiences can provide us with more lasting happiness because they become a part of our self. We identify ourselves as the accumulation of everything that has happened to us. And if you pay more money to get more awesome experiences, you will feel happier in the long run.

Life is about memories

Experiences shape memories, not things. At the end of your life, you are not going to remember how cool you were just because you had an iPhone 7 while others had the 6. Instead, you are going to remember what cool weekends you were having with friends and family or what awesome places you have visited during your vacations. Unlike things that you might devalue right after purchasing them, experiences provide longer lasting memories. Accordingly, they are more valuable than anything else. In other words, it’s a good idea to spend money on experiences rather than things and to see which one is more pleasurable for you. Share your opinion with us. Feel free to comment below.




Also published on Medium.

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