Experiences vs. Possessions

"The cheapskate next door knows something that numerous social scientists have confirmed, including Ryan Howell, Ph.D., an assistant professor of psychology at San Francisco State University. Howell’s research not only supports the idea that spending to create life experiences, as opposed to accumulating more possessions, makes us happier; his findings also show that the relative amount we spend on those experiences doesn’t directly impact the level of happiness they provide. A $27 dinner, for example, can bring the same amount of happiness as a $400 weekend getaway.

So the important thing is not how much we spend on an experience – assuming it costs anything at all – but rather that we make the effort to have them. For that, of course, we need time. That’s why, as discussed before, the cheapskate next door values his time and what he can do with it more than money and the stuff he can buy with it.

When I speak to groups about the virtues of the cheapskate lifestyle, I like to ask the adults in the audience how many birthday and holiday gifts from their childhood they remember, and how many of those gifts they still own today. The answer is usually just a couple, at most, of the countless gifts most of us were showered with when we were kids.

Then I ask them how many memories from those same special occasions they remember and cherish even more with each passing year. You can see the light bulbs coming on. As the cheapskates next door know, possessions tend to disappoint and become less valuable over time, while experiences often retain or even increase in value with age."

Jeff Yeager
The Cheapskate Next Door