Experiences vs. Things Spending Calculator

Experiences vs. Things Spending Calculator

Where does your discretionary spending actually go - experiences like travel and dining out, or material possessions? Research suggests this split matters more for happiness than the total amount spent.

Experiences% = (Experience Spending / Total Discretionary Spending) x 100

Example

$300 on experiences, $200 on material goods:

Experiences% = (300/500) x 100 = 60% of discretionary spending on experiences

The Research Behind This

A well-known body of research in behavioral economics and positive psychology - notably from psychologists Thomas Gilovich and Leaf Van Boven - has repeatedly found that money spent on experiences (travel, concerts, shared meals) tends to produce more lasting happiness than money spent on material possessions of equivalent cost.

Why Experiences Tend to Win Out

Experiences largely resist "hedonic adaptation" - the psychological process by which the initial excitement of a new purchased object quickly fades into the new normal - because experiences become woven into our identity and memories in a way physical objects generally don't. We also tend to compare our possessions unfavorably against others' newer or nicer things, while experiences are inherently unique and less prone to this kind of social comparison.