Most of us think, “If I just had more money, I could relax, feel better about life and be happy.” But is this true? We know money can’t buy us love, but what about happiness?

And if you are blessed to have money, should you buy that expensive TV in order to feel happy, or go on that lavish vacation?

Yes and No! Research on money and happiness tells us a few important things.

1) How you spend money matters in terms of happiness. For example, when you give money away, you are happier than when you spend it on yourself. Giving is better than getting!

2) If you do spend money on yourself, again, how you spend it matters. Researchers have found that spending money on things makes you less happy than spending money on experiences. For most of us, this seems counterintuitive. Experiences seem fleeting, material things last longer, right? True, but we somehow value experiences more and adapt to the presence of material things. In the end, experiences win over things.

So when it comes to money and happiness, spend it on experiences–take the vacation, go sky diving, pay for that gourmet dinner for 10 friends. Forget the large screen TV, the new boat, or even the bigger house. More importantly, find good causes to which you can give!

Yes, people with money are happier than those who don’t have it, but what you do with it matters! It is better to give than to receive!