Canadian Finance Blog

Posted: 11 Aug 2010 02:00 AM PDT

We should all know by now that money can’t buy you happiness. Well, maybe that was because they were just spending the money wrong. The New York Times has a lengthy article that basically boils down to this: if you spend your money on experiences, you’ll be happier than if you spent your money on stuff. Buying a 60 inch television might make you temporarily happy, but then your happiness will flat-line and you’ll get used to having a big TV. Purchasing a new car might spike your joy, but then you’ll get used to the benefits of the car and it will seem like having this car is the standard, not the exception, and you will stop deriving happiness from it. Experiences, however, will not only spike your joy, but will give you a more constant stream of happiness.

So what counts as “experiences”? Being a personal finance blog, I would love to tell you that taking the whole extended family to Mexico for a two week long all inclusive would be a great “experience”. It would! However, it would also be expensive, and the “joy” that you got from that experience might not be worth the stress and strain of having to pay off your credit cards once you return. So what can a responsible family do in order to benefit from the joy of experiencing life without going into debt to do so?

I think that there are two ways to go about doing this. The first is more extreme, and it is the one that is featured in the New York Times article. This involves changing your whole lifestyle to focus on non-materialistic endeavours. This can range from selling all of your possessions to moving to a trailer park and starting to surf everyday. This can be a fantastic plan for those of you that are sick with your jobs, your lifestyle, or your debt. It can be the kick in the pants that you need to conquer your fears and financial troubles – but it is not for everyone.

The second way that you can embrace this philosophy is by simply reorganizing your budget to accommodate experiences over material objects. This can be as simple as choosing to go see a movie at a theatre rather than purchasing it on DVD, as you’ll probably only ever watch it once. Yes, it will cost more, but then you’ll always have the memory of seeing Lord of the Rings on opening night, or that time you were the only couple watching Inception that Sunday afternoon. Here’s some more experience embracing ideas.

Become a Tourist in Your Town

What attractions are there in your own city that you’ve never even visited? I’ve lived in this city for over two years now and I have yet to spend any significant amount of time actually exploring it. There are moderately famous parks that I’ve never been to, and those are free!

Go For a Hike

The only cost associated with doing some outdoor recreation is the gas money that you spend, and the extra food you might eat afterwards. Not only is going for a hike healthy, it is a cheap and affordable way to spend time with the entire family, dog included. As a side benefit, you get to get back in touch with nature and the surrounding countryside.

Have a Games Night

Invite some friends, maybe open a beer or two, and spend some time playing games like Monopoly or Rock Band all night long. By playing games you already have, you won’t be spending any more money than necessary. Swap games with various friends for even more game time without the associated cost.

Use Gift Money for Events, Not Stuff

Instead of using Christmas money to buy each other sweaters and CDs, use your Christmas or Birthday money to rent out a hotel room or a bed and breakfast for a weekend. Your sweater will spend its life in the closest, but you can’t replace the weekend you spent on the coast last summer.

In the end, the important part is that you are spending your time and energy doing things that are fun. You are not in the mall, you are not focused on future purchases, you are simply living in the moment and enjoying what you already have. In what ways do you focus on being happy? What experiences would you recommend?

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