1 Sept 2026
License to Spend: How to Use Money to Build a Happier Life
Last episode explored how more money can improve well-being. So, how should you spend it to improve your life?
In Episode 41 of The Decision Dividend, Pat Collins and Marcus Schafer explore research suggesting that experiences, spending on others, and buying back time often produce more happiness than material purchases alone.
You’ll learn:
Why experiences create lasting happiness through anticipation, connection, and memories
How giving to others can strengthen relationships and create a greater sense of purpose
Why buying back time can reduce stress and make room for what matters most
How to make material purchases more rewarding
Episodes Referenced
Episode 40, Can Money Buy Happiness? A Nobel Laureate’s Famous Finding Revisited
Episode 10, How Much Money Do I Need to Retire?
Episode 33, Where Should Your Extra Savings Go?
Sources
Elizabeth W. Dunn, Daniel T. Gilbert, and Timothy D. Wilson, “If Money Doesn’t Make You Happy, Then You Probably Aren’t Spending It Right,” Journal of Consumer Psychology, 2011. https://www.sciencedirect.com/science/article/abs/pii/S1057740811000209
Thomas Gilovich, Amit Kumar, and Lily Jampol, “A Wonderful Life: Experiential Consumption and the Pursuit of Happiness,” Journal of Consumer Psychology, 2015. https://www.sciencedirect.com/science/article/abs/pii/S105774081400093X
Bill Perkins, Die With Zero: Getting All You Can from Your Money and Your Life, 2020. https://dwzero.com/
Leaf Van Boven and Thomas Gilovich, “To Do or to Have? That Is the Question,” Journal of Personality and Social Psychology, 2003. https://pubmed.ncbi.nlm.nih.gov/14674824/
Elizabeth W. Dunn, Lara B. Aknin, and Michael I. Norton, “Spending Money on Others Promotes Happiness,” Science, 2008. https://pubmed.ncbi.nlm.nih.gov/18356530/
Lara B. Aknin, Elizabeth W. Dunn, and Michael I. Norton, “Happiness Runs in a Circular Motion: Evidence for a Positive Feedback Loop Between Prosocial Spending and Happiness,” Journal of Happiness Studies, 2012. https://www.hbs.edu/faculty/Pages/item.aspx?num=42426
Ashley V. Whillans, Elizabeth W. Dunn, Paul Smeets, Rene Bekkers, and Michael I. Norton, “Buying Time Promotes Happiness,” Proceedings of the National Academy of Sciences, 2017. https://www.pnas.org/doi/10.1073/pnas.1706541114
Sandra C. Matz, Joe J. Gladstone, and David Stillwell, “Money Buys Happiness When Spending Fits Our Personality,” Psychological Science, 2016. https://pubmed.ncbi.nlm.nih.gov/27056977/
https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs
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Information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. It is not intended as the primary basis for financial planning or investment decisions and should not be construed as advice meeting the particular investment needs of any investor. This material has been prepared for information purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results.
