What should you buy if you want to be happier?

Imagine a work bonus or unexpected tax refund has just arrived in your bank account. If you choose to spend it, you have two options: spend it on an experience such as a weekend away you’ve been hoping for, or finally buy the paddleboard, bike, or musical instrument you've wanted for months. Which choice is more likely to make you happy?

For years, psychological research has largely suggested that the greatest happiness comes from spending money on experiences rather than possessions. Emotive experiences such as vacations, concerts, and meals with friends tend to create more lasting happiness than buying material goods.

But according to new research co-authored by Jordi Quoidbach, Professor of Behavioral Science at Esade Business School, that narrative isn’t the complete story. The purchases that make us happiest may not be experiences or possessions. They may be purchases that combine both.

The advice we've all heard

The idea that experiences make us happier than possessions has become one of the most widely cited findings in positive psychology. Numerous studies have shown that spending money on experiences generally leads to greater and more enduring happiness than buying material objects.

It’s easy to imagine why. Experiences create memories that become part of our identity. Sharing experiences can also strengthen our relationships and create treasured memories. A vacation with family, dinner with friends, or tickets to a favorite concert remain emotionally valuable for months or years, still providing a feeling of happiness when recalled at a later date. This is the psychological principle of ‘savoring’, which enables us to feel a sense of well-being about an event or experience after it has finished. Savoring has been linked to greater well-being and better mental health.

By comparison, material purchases such as televisions, jewelry, or furniture can quickly blend into the background and become part of everyday life. As people adapt to owning them, the excitement of the purchase often fades, and we begin to crave something ‘better’ or newer. This psychological phenomenon is known as hedonic adaptation (or the hedonic treadmill).

This distinction between experiences and possessions has been the basis for academic research and popular advice for years. However, Quoidbach and his fellow researchers argue that this comparison doesn’t fully explain how and why people actually spend their money, nor which purchases really make us feel happier.

Why the question is too simple

Often, purchases can’t neatly be classified as just ‘experiences’ or ‘items’; many combine material and experiential qualities.

While a paddleboard is clearly a physical object, the thrill it provides extends further than the initial purchase because it offers the opportunity to spend time outdoors in nature with friends. Likewise, a swimming pool is a one-time costly purchase, but it’s the years of poolside gatherings and refreshing swims that generate much of the happiness. A smartwatch may give a sense of satisfaction when you buy it, but over time, it encourages a healthier lifestyle, which can also lead to happiness. Whether a person buys a vacation home or a simple fire pit, items like these continue to create happiness on an ongoing basis with every use.

These purchases challenge the traditional distinction between possessions and experiences. They are material goods, but their value comes largely from the experiences they continue to generate.

This is a key insight from Quoidbach’s research. Accordingly, the researchers don’t merely ask whether consumers should spend money on experiences or possessions; instead, they look at which kinds of purchases are most likely to create meaningful experiences over time.

The happiest purchases combine both

To explore this idea, the researchers conducted four separate studies involving more than 3,200 participants and hundreds of different purchases.

Their findings confirm that experiential purchases are indeed a powerful source of happiness. However, they also demonstrate that material purchases should not be dismissed. As Quoidbach explains, "Material and experiential qualities both positively contribute to happiness, and their effects are additive."

In simple terms, purchases that score highly on both dimensions often generate the greatest happiness of all. As the researchers conclude, "If consumers must choose between material and experiential qualities, they should choose experiential consumption. However, when consumers can seek both qualities, it can provide as much as or even more happiness than purely experiential consumption."

It's not always a straightforward choice between purchasing either an experience or a possession. Quoidbach suggests that the purchases that make people happiest are often those that continue creating meaningful experiences long after the initial spend.

What this means in real life

This research can help us make purchasing decisions that lead to more lasting happiness.

Instead of asking, "Should I buy an object or an experience?" perhaps the better question is, "Will this purchase continue creating meaningful experiences in the future?"

A bicycle may encourage years of exploration in the countryside. A kayak can lead to years of exploring the coast with friends. Learning to play a musical instrument can bring years of satisfaction and enjoyment. Camping equipment can support family holidays for decades, while renovating a garden may create a space for years of family barbecues.

These purchases derive their value not simply from ownership but from the experiences they enable.

This idea also reflects broader consumer trends. Some reports suggest that consumers increasingly prioritize experiences, wellness, and personal fulfillment when making purchasing decisions.

The growth of the experience economy has spurred businesses across sectors to design products and services that combine tangible ownership with memorable experiences.

Companies such as Disney, Apple, and Airbnb have embraced this approach. From enchanted theme parks and immersive retail experiences to curated local travel, these businesses focus heavily on emotional connection.

Think before you spend

The research suggests that rather than spending more, we should spend more intentionally. In other words, we should purchase items that have the potential to create meaningful experiences long after we buy them.

The most rewarding purchases often become the foundation for lasting memories, stronger relationships, personal growth, and meaningful shared experiences.