Why Money Can't Buy Happiness (Or, Spend Money on Adventures, Not Stuff)

Do you know why money can't buy happiness? It's a phenomenon called the "Hedonic Treadmill." It's the tendency of a person to remain at a relatively stable level of happiness despite changes in fortune or the achievement of major goals. As a person makes more money, expectations and desires rise in tandem, which results in no permanent gain in happiness.

For example, when you buy a new car, it's great at first, but after awhile it's just your car. Or you buy a new living room suit and you dare anyone to eat or drink while sitting on your new sofa because it is new and beautiful and it has made you happy for three consecutive weeks. Then one night you decide to eat spaghetti on your sofa and you spill spaghetti sauce on it. You shrug your shoulders and think, "Oh, well" because it's just your sofa now, not your new sofa that made you happy when you first purchased it.

The hedonic treadmill is science's way of proving the old axiom, "Money can't buy happiness." Solomon wrote, "Whoever loves wealth is never satisfied with his income" (Ecclesiastes 5:10).

Life is an adventure. During this adventure, millions of dollars will pass through your hands. (Don’t believe that? If you make $30,000 a year between the ages of 25 & 65 you'll make $1.2 million.) You can spend your money on adventures or you can spend it on stuff. New stuff will get old. New adventures will never get old.

So what to do with your money then? Dan Ariely, a behavioral finance expert and the author of The Upside of Irrationality: The Unexpected Benefits of Defying Logic at Work and at Home wisely says, "The best way to maximize happiness is to spend money on things you won't get used to. If you're deciding between a sofa and a vacation, go for the vacation. You'll quickly get used to the sofa, but the vacation will bring long-lasting memories" (Money, June 2010).

From my perspective and as much as possible, I want to spend my money on things that last. Whether it is my own personal adventures or supporting the adventures of others (e.g., mission trips) I want to choose experiences over material things.

Sometimes material things and experiences collide. For example, eight years ago I bought my first motorcycle. I wanted to enjoy the experience of riding down country roads on a beautiful day with the wind in my face and bugs in my teeth. I ended up buying three motorcycles over time. I sold the last one last fall with no regrets. For me, I enjoyed the experiences but over time riding got rather commonplace. I never did a cross-country ride. I still think I'd like to do that, but for now, I've "been there, done that" with motorcycles.

What adventures do you seek? More importantly, how do you find true happiness? Here's my suggestion.

Are you happy? Are you buying new stuff that soon gets old or are you investing in adventures and new experiences?