The Surprising Truth About Spending: How to Use Your Wealth to Boost Happiness
What if the smartest financial decision you could make today…was to spend more?
That idea might sound counterintuitive—maybe even a little uncomfortable. But for many people who’ve spent decades saving, investing, and planning carefully for the future, this might be exactly the advice you need to hear right now.
As a financial advisor, I often find myself sharing a message that surprises my clients: You may be in a position to spend more—starting now. If that gives you pause, you’re not alone. After years of building a strong financial foundation through frugality and discipline, the idea of spending more can feel unfamiliar, even risky.
But here’s the truth: this isn’t about being frivolous. It’s about recognizing that your hard work has paid off—and it’s time to let your money serve your life, not just your future.
You’ve already done the heavy lifting: saved diligently, invested wisely, and planned thoroughly. Now you have the opportunity to experience what those efforts were really for—greater freedom, deeper joy, and more meaningful moments with the people and passions that matter most.
Understanding Your Hesitation
If the thought of spending more makes you uneasy, that’s completely normal. Years of diligent saving often shape a mindset of caution. Perhaps you worry about running out of money or feel guilty indulging after a lifetime of restraint.
But your advisor’s suggestion to start spending isn’t about throwing away your careful planning—it’s about recognizing that your financial situation is likely strong enough to support more enjoyment today without compromising tomorrow. When you reframe spending as an expression of abundance, not recklessness, you begin to unlock a more fulfilling relationship with money.
What Kind of Spending Boosts Life Satisfaction?
Not all spending is equal. Research in positive psychology points to certain types of spending that tend to increase happiness more than others. Here are four that stand out:
1. Experiences Over Things
Spending on experiences—travel, concerts, classes—often creates deeper, longer-lasting joy than acquiring material items. Experiences generate memories, foster connection, and lead to personal growth. Think about that dream vacation or weekend getaway with loved ones you’ve been putting off.
2. Spending on Others
Giving—whether through charitable donations or thoughtful gifts—can positively affect your well-being. Supporting causes you care about or surprising someone you love can bring a deep sense of purpose and joy.
3. Investing in Health and Well-Being
Prioritizing your mental and physical health is one of the wisest ways to use your money. Whether it’s a personal trainer, therapy, nutritious food, or a wellness retreat, these investments enhance your capacity to enjoy life.
4. Time-Saving Services
Time is your most limited resource. Spending on services that reduce stress—like meal delivery, house cleaning, or landscaping—can free you to focus on what you truly love.
Practical Steps to Start Spending
You don’t need to jump into big-ticket purchases overnight. Here’s how to ease into a healthier, more intentional relationship with spending:
- Start Small: Begin with a simple indulgence—a nice dinner out, a small gift for someone you love, or that item you’ve been eyeing.
- Create a “Fun Fund”: Designate a monthly amount (e.g., $500–$1,000) specifically for enjoyment. Give yourself permission to use it guilt-free.
- Set Spending Goals: Want to hike the Grand Canyon? Take a painting class? Make it a goal. Purposeful spending feels satisfying.
- Reframe as an Investment: A trip with your grandchildren creates “memory dividends” for years. Supporting a cause builds legacy and identity.
- Involve Loved Ones: Share experiences with the people you care about. A group trip or special celebration can be more meaningful than a financial gift.
Tailoring Spending to Your Passions
Spending becomes joyful when it reflects your deepest values. Ask yourself:
- What have I always wanted to do but never gave myself permission?
- Are there causes I’m passionate about?
- What would improve my health or reduce daily stress?
- What shared experiences could strengthen my family bonds?
If you’ve always wanted to write a novel, consider investing in a writing retreat. Love the outdoors? Upgrade your gear and go on that national park tour. Aligning spending with your passions ensures it enhances—not detracts from—your well-being.
Thinking About Your Legacy
For many, hesitation to spend stems from a desire to leave a legacy. But legacy isn’t just about money—it’s also about the memories you create and the values you pass on. A family vacation, helping a child with a down payment, or launching a family charitable initiative can all be powerful parts of the legacy you begin now.
The Bottom Line
The idea of “spending more” isn’t a departure from wise planning—it’s the natural evolution of it. You’ve worked hard to build your wealth. Now it’s time to let that wealth work for you—by enriching your life with joy, connection, meaning, and purpose.
Start small. Be intentional. And most importantly, give yourself permission to embrace the abundance you’ve earned.
This is intended for informational purposes only. You should not assume that any discussion or information contained in this document serves as the receipt of, or as a substitute for, personalized investment advice from Savant. Please consult your investment professional regarding your unique situation.
Dennis J. Reilly
Financial Advisor
AIF®, MA