Experience vs. Things

It's important to make room in your budget for "fun" stuff. Budgets without room for
things like going to see a movie, buying a pair of shoes, or going on vacation are more
likely to fail. So what should that "fun" money be prioritized for the greatest impact?
Experience or things?

According to an article from SAGE Journals, experiential purchases (money spent on
doing) tend to provide more enduring happiness than material purchases (money spent
on having).

The wait for an event, such as a vacation or concert, brings more happiness than the
wait before purchasing something.

While there's that initial rush you feel when you buy something new, it's not something
you can necessarily recall as a "happy memory". You quickly become accustomed to
that item being in your possession. These new purchases also lead to people needing
to keep buying bigger & better to keep that feeling.

Every time you have a new experience, such as a vacation, it becomes a part of who
you are. That doesn't happen with our material possessions. You can recall the happy
memories and remember what that felt like, that doesn't happen when you buy
something.

It can also help eliminate the need to "keep up with the Joneses." People aren't as
likely to compare what they do as they do with what they have. While you can easily
compare an item such as a car, it's impossible to compare the feelings that experiences
can bring.

So while you may not be able to have it all, you can make sure that your money is
going towards what's most important. Just remember to leave room for fun whenever
you create a budget.