If you’re conflicted about whether to spend money on a material good (say, a computer) or personal experience (say, a vacation), the research says you’ll get much more satisfaction — and for longer — if you choose the experience. Most of us, it turns out, get more bang from the experiential buck. Indeed, when people are asked to recall their most significant material and experiential purchases over the previous five years, they report that the experience brought more joy, was a source of more enduring satisfaction and was more clearly “money well spent.”
This might seem counter-intuitive. The material good lasts while the experience is fleeting. But psychologically it’s the reverse. We quickly adapt to the material good, but the experience endures in the memories we cherish, the stories we tell and the very sense of who we are.