The relationship between money and happiness is surprisingly
weak, which may stem in part from the way people spend it. Drawing on
empirical research, we propose eight principles designed to help
consumers get more happiness for their money. Specifically, we suggest
that consumers should (1) buy more experiences and fewer material
goods; (2) use their money to benefit others rather than themselves;
(3) buy many small pleasures rather than fewer large ones; (4) eschew
extended warranties and other forms of overpriced insurance; (5) delay
consumption; (6) consider how peripheral features of their purchases
may affect their day-to-day lives; (7) beware of comparison shopping;
and (8) pay close attention to the happiness of others.

Although much research has examined the effect of income on happiness, we suggest that
how people spend their money may be at least as important as how much money they earn.
Specifically, we hypothesized that spending money on other people may have a more positive
impact on happiness than spending money on oneself. Providing converging evidence for this
hypothesis, we found that spending more of one’s income on others predicted greater
happiness both cross-sectionally (in a nationally representative survey study) and longitudinally
(in a field study of windfall spending). Finally, participants who were randomly assigned to
spend money on others experienced greater happiness than those assigned to spend money
on themselves