The Secret to Using Money to Buy Happiness
You need to take a hard look at what you’re spending your money on, and then take a harder look at yourself and what you really value.


We’ve all heard some version of the joke that goes, “no, money can’t buy happiness … but it can buy ____, and that’s kind of the same thing.”
It’s amusing because it hits on an important truth that can help set you up for financial success — if you fully understand it and use it to your advantage.
Money Doesn’t Automatically Equal Happiness
You actually can buy happiness. Most people just go about this the wrong way.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
People who can’t use money to buy happiness are spending it on things because they think they should. They’re spending on status symbols to impress other people. Or they’re trying to buy a bunch of stuff to distract themselves from deep problems instead of facing and resolving those issues.
Buying things to please or wow other people puts you on the fast track to misery. And spending all your money on stuff can leave you feeling empty.
There are a few reasons for this:
- Humans suffer from something called “hedonic adaptation.” Because we’re so adaptable, the pleasure we get from buying new stuff quickly fades as we get used to it. We have to continuously seek newer, bigger, more exciting buys to keep that sense of pleasure. We get stuck on a hedonistic treadmill and never feel satisfied for long.
- But sometimes we don’t even feel happy with our purchase in the first place. We tend to feel buyer’s remorse more often than not, especially because we’re prone to comparing our new things to someone else’s — and feeling like our stuff came up short somehow.
- Acquiring stuff may be a coping mechanism to help us deal with stress and other factors that lead to overall unhappiness.
From this perspective, the old adage is right. Money can’t buy happiness.
That’s a good money lesson to keep in mind. But there’s some nuance here. No, money isn’t a direct path to happiness. It is a tool. And just like any tool, there’s a right and a wrong way to use it.
If you want to leverage your finances to bring happiness, start by understanding what you value.
Feel Like You Can Afford Anything: Align Spending with Values
Remember that joke at the top of this article, where you could insert whatever appealed to you in the blank? That’s the key to using money to “buy” happiness: knowing what’s important to you.
By “important to you,” that doesn’t mean a new smartphone or a fancy watch. We’re talking about your core values. These are things like:
- Family
- Community
- Respect
- Determination
- Service
- Wisdom
When you spend on what you value and cut out what you don’t, you might be surprised how much money that leaves in your monthly cash flow. You can then redirect that money to more of what you value — or save more for major financial goals.
Speaking of financial goals, make sure those align with your values, too. You don’t want to work relentlessly toward something like buying a house just because you feel like you should (or because you feel pressured by someone else’s expectations).
How You Use Money Should Reflect What’s Important to You
Once you define what your values are, take a look at your spending. Does your current budget reflect those values back at you? Or are you using your money to buy stuff that’s not deeply important to you?
If it’s the latter, there’s room for improvement — and for allowing your money to bring more happiness. For example, maybe you realized you’re spending over $1,000 per month on meals out. (And if that sounds outlandish, it’s easier to do than you think. A $10 lunch and a $20 dinner out every single day will get you there. So will fewer but more expensive meals at nicer restaurants.)
But what if your values include family, personal growth and health? Your spending doesn’t align with these at all right now. You could spend more time with your family, learn a new skill, and improve your health by taking on the challenge of cooking every meal at home for a month.
Once you define your values and understand what’s deeply important to you, you might realize that very little on that list deals with material goods or physical stuff.
Your list is probably centered around people and experiences — and spending to create memories that last with people you love is one of the most powerful ways we can use money to buy happiness.
To see the original version of this article, click HERE
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Taylor Schulte, CFP®, is founder and CEO of Define Financial, a fee-only wealth management firm in San Diego. In addition, Schulte hosts The Stay Wealthy Retirement Podcast, teaching people how to reduce taxes, invest smarter, and make work optional. He has been recognized as a top 40 Under 40 adviser by InvestmentNews and one of the top 100 most influential advisers by Investopedia.
-
Stock Market Today: Stocks Stable as Inflation, Tariff Fears Ebb
Constructive trade war talks and improving consumer expectations are a healthy combination for financial markets.
-
What Trump’s 'Big Beautiful Bill' Means for Your Utility Bills
If passed, the 'Big Beautiful Bill' could make home energy upgrades more expensive and raise monthly costs. Here's how much more you might pay and how to prepare.
-
The Three C's to Financial Success: A Financial Planner's Guide to Build Wealth
Consistency, commitment and confidence in your chosen strategy are more critical to your financial success than finding the 'perfect' financial plan.
-
A Financial Expert's Tips for Lending Money to Family and Friends
What starts as a lifeline can turn into a minefield if the borrower ghosts the lender. Following these three steps can help you avoid family feuds over funds.
-
I'm an Insurance Expert: Yes, You Need Life Insurance Even if the Kids Are Grown and the House Is Paid Off
Life insurance isn't about you. It's about providing for loved ones and covering expenses after you're gone. Here are five key reasons to have it.
-
My Professional Advice: When It Comes to Money, You Do You
This is how embracing the 'letting others be' and 'learning to surrender' mindsets can improve your relationship with money.
-
The High Price of Skipping Workers' Comp Insurance
Two labor and employment attorneys highlight the penalties (fines, reputation damage and even jail time) that small businesses risk if they opt not to carry workers' comp insurance.
-
Jet Set on a Budget: Expert Advice for Summer Travel
These cost-saving strategies, supplied by a financial adviser, are essential for enjoying summer travel without financial stress or debt.
-
Five Divorce Settlement Blind Spots: An Expert's Guide to What You Can't Afford to Miss
Even the best lawyers can miss tax and other financial considerations when drafting complex divorce settlements, so specialist advice is vital from the outset.
-
Scam Alert: Bioelectronic Medicine Is Both Promising and Ripe for Fraud
My reader needed help dealing with a scam that cost her $2,000 for vagus nerve stimulators, but legit VNS actually offers hope for the treatment of many diseases.