The psychology of spending

We adapt to Stuff faster than we adapt to new experiences. We may buy a new iPod, and after few years we became adapt to that. But a cooking class, a vacation, an exhibition — these experiences are all complex and take time to digest, mentally and emotionally. When we do them with friends or loved ones, they become part of our relationships with those people, adding yet more layers to the experience and the memories that come out of it.

Frugal happiness seekers can make use these principles to their advantage. Actually it doesn’t take a lot of money to seek out new experiences. Just going for a walk down the beach with your wife can provide plenty of happiness, with no price tag attached. Always keep in mind that a series of small luxuries is worth more happiness than one large splurge.

Buying Stuff and Happiness.

As per Stephanie Rosenbloom "Increased spending on leisure, travel, and hobbies tends to make people more satisfied with their lives, but buying Stuff does not."

Its true that a lot of people are finding happiness by reversing from a consumer lifestyle. Now those people has more money to spend on what they loves because their needs are small. They may not buy Stuff or keep up a big apartment. They might swapped their cars (and of course car EMIs) for public transportation. We don’t have to spend a lot to be happy. In fact, simple living often leads to a richer life.