Spend on Experiences

Quick Win

Give your time and money to experiences like travel and volunteer work for long-lasting memories.

Try This Today

• Save now, travel later. Consider maxing out your 401(k) or a Roth IRA and stash 10 to 15 percent of your income for retirement, if possible. Many people dream of spending their retirement traveling. This saving strategy may allow you to meet your travel goals.
• Budget for charity. Set up a monthly deduction from your bank account to a charity rather than waiting for someone to request a contribution. If you can’t afford to give money, consider volunteering your time.
• Give experiences. Instead of buying material presents, consider giving your time. Invite a family member to a movie night complete with popcorn and cozy blankets. Gift passes to a nature center or botanical garden and plan the first visit together.

Why

Say you have an extra $1,000 and you’re deciding how to spend it. A tech gadget like a flat-screen TV may seem like the way to go, but in Happy Money: The Science of Smarter Spending, coauthor Michael Norton, a professor at Harvard Business School, explains why booking a vacation is likely a better choice. “We think that when we get a TV, we’re going to have family and friends and parties to watch the Super Bowl. But mostly we just stare at it by ourselves.” Norton adds that, while a vacation may last only a week, “you get to experience the mental vacation again and again.”