The Secret to Spending Your Way to Happiness

Key points

Spending on experiences beats material goods for lasting joy.

Hedonic adaptation limits happiness from things.

Investing in self-growth creates deeper fulfillment.

Meaningful connections amplify the impact of spending.

I’ve often written on this blog about the complicated connection between money, purpose, and happiness . Some studies suggest that income relates to happiness up to a point, but the most enduring research tells a different story. The Harvard Adult Development Study, which has tracked participants for over 80 years, concludes that personal connections—not money—are the true key to fulfillment.

Still, the question remains: Can we spend our way to happiness? The answer, as usual, is yes and no. To see why, it helps to look at the three broad ways people spend