Episode 86: How to Actually Use Money for Happiness
We all think having more money will make us happier, but what if the way we instinctively spend it isn’t actually the key to lasting happiness? In this episode of Stuff About Money, Erik Garcia, CFP®, dives into five ways we can use money, and why the thing we want to do with it—buying more stuff—won’t bring us the deep, fulfilling happiness we hope for. Instead, he explores the four things that actually do create happiness: investing in experiences, buying back time, giving generously, and saving for the future. From reflecting on a family trip to Disney World to the conversation we all love to have—“What would you do if you won the lottery?”—this episode challenges the way we think about money and what it can (and can’t) buy.
Erik breaks down why spending money on experiences creates memories that last, why buying time back only works if you actually use it wisely, and how generosity is one of the most unexpected happiness boosters. Plus, he explains why saving money isn’t just about financial security—it’s about progress, and progress makes us happy. If you’re looking for a way to shift your mindset on money and happiness, this episode is for you. Tune in, challenge yourself to rethink how you spend, and share this episode with someone who could use a fresh perspective on what really leads to financial joy. Plan wisely, live confidently!
Episode Highlights:
- Erik discusses Arthur Brooks’ research on money and happiness, sharing insights from his book on how financial choices impact well-being. (03:00)
- Erik explains why experiences create lasting happiness, while material goods lose their appeal over time. (03:47)
- Erik explores how using money to buy time can lead to greater fulfillment by prioritizing meaningful activities. (06:00)
- Erik shares why generosity leads to greater life satisfaction, as highlighted in Brooks’ book. (07:00)
- Erik emphasizes saving as a way to create future opportunities and achieve long-term happiness, a key theme in Brooks’ research. (09:19)
- Erik explains the deeper purpose of financial success and the importance of using money to support meaningful goals, a key lesson from Brooks’ book. (14:47)
Key Quotes:
- “Spending money on experiences, buying experiences is a lasting investment into happiness and when you can use your money to buy experiences to create shared memories with people you love, that is a ticket to happiness.” – Erik Garcia, CFP®, BFA
- “Go out there and find a way to use your money to make a long-term investment in your happiness.” – Erik Garcia, CFP®, BFA
- “Every dollar that you save is creating a future opportunity and every dollar you waste represents a wasted opportunity in the future. We don’t know what the future holds. So having money in savings is a good way to prepare for the unknown” – Erik Garcia, CFP®, BFA
