How to Buy Happiness

News flash: Money can buy happiness – but not in the way you think it might.

Forget the designer shoes and flashy toys. It’s money spent on experiences, like those shared with family and friends, that makes people feel more satisfied than splashing cash on tangible goods, says new research from San Francisco State University (SFSU).

Why? The experience is the gift that keeps on giving. When you think back on an experience – a trip to the theater or park or restaurant – your brain relives the moment, so the happiness goes on.

“As nice as your new computer it is, it’s not going to make you feel alive,” Ryan Howell, an SFSU assistant professor of psychology and the lead author of the study, told CNN.

In the study, 154 people answered questions about a purchase – either experiential or material – they’d made in the previous three months. While most people were generally happy with their purchases, those who spent the money on experiences had a higher satisfaction as time passed. Now that’s money well spent.