Experiences Over Things: Redefining Wealth with a New Approach To Spending

The conventional ideology often suggests that wealth and money 💰 should be used to acquire material possessions. A bigger house 🏠, a faster car 🚘, or the latest designer clothes 👗 are seen as symbols of success and status. However, at Money First Aider, I strongly challenge this notion. We have to be prioritizing experiences 🛤 over material possessions in view to creating to a much more fulfilling and meaningful life 🤗.

Memories 💭, not material items, define us as individuals. I am not going lie and say that the tangible objects we accumulate cannot provide temporary satisfaction. In fact, we do sometimes need to treat ourselves to enjoy the fruits 🍇 of our labour 👷‍♀️ and indulge ourselves. However, the satisfaction dopamine hit we get from these purchases do fade quickly over time ⏲️. I am sure you can list a few things you were so excited when you saved up to buy them, but now they're either sitting in a corner somewhere untouched, or they have become like normal possessions that no longer trigger much emotion 💃 like it did before.

At Money First Aider, I don't just want to guide you how to look after and build your wealth 💰 bucket. I also want to show you how to SPEND 💸 your money WELL, how to get the most out of your hard earned salary. There is one skill in making and looking after money 💶, there is another skill in how to spend it to maximise the quality 💯of your time on this planet.

In contrast, experiences anchor ⚓️ themselves into our memories, shaping our identities and enriching our lives. Experiences 🚡 not only provide pleasurable anecdotes, but also add texture to our broader life stories. We become more interesting 🤪, more intelligent 🤓 due to your exposure of odd out-of-the-norm journeys. Family vacation 🚉 to a foreign country, a weekend camping trip 🏕, a walk in the forest 🌳, or even a simple dinner 🍝 at a new restaurant can create lasting memories that bring joy and connection 🫂 long after the event itself.

Understanding Our Neurotransmitter 🧠 Makeup

We humans are group animals. We are naturally designed to interact with one another. Buying physical items mostly tend to be a singular experience ⏭️, like between you and that designer bag, or you and that new car. In fact a lot can be said about how people using these purchases to seek validation ✅️ from others, further turning these purchases to be a inward-looking emotions. Other than a short dopamine and serotonin short term hit 🤯, it doesn't provide much more stimulation that you brain can justify in the long run.

On the other hand, spending money on experiences ⛱️ increases your likelihood in going through those events with other people, growing our interaction 🤝 and connection 🔃 with others like how we are designed to be. These experiences bring people together 👨‍👩‍👧‍👧, strengthen relationships, and create a sense of community. Within our brain 🧠, they not just trigger dopamine (our satisfactory hormone) but other important neurotransmitters like oxytocin which enhances social bonding, compassion, trust and empathy with others. We now know that high levels of oxytocin has strong calming 💆‍♀️ effects and is very effective in reducing stress 🧘‍♀️ and anxiety. I hope you can see that you are getting more value for your money with experiences and journeys rather than the latest newest physical toy.

When we reflect on a memorable trip ✈️ or a thrilling adventure 🎢, we relive those joyful moments and feel a sense of gratitude and contentment. Material possessions, on the other hand, can quickly lose their luster. The newest gadget may become obsolete, and the latest fashion trend may go out of style.

Many studies have shown that when people look back on their experiential purchases, they are less willing to go back in time to trade that experience in, for something different; this is compared to materialistic purchases, where the joy or the positive impact it has on your life later on dissipates. You are far more willing to give up an object that you own, than a memory that you have experienced.

My own experience with buying things - the opportunity cost 💸

I have had quite a few big material indulgences over the last few decades and I can certainly tell you that only one or two of them still stand out to have lasting emotional effects on me. New overcoats, new bags, new watches, new trainers, new cars. Through time, just off the top of my head, I have owned over 15 coats and jackets 🥼, 12 watches ⌚️, 16 bags 🛍, over 20 pairs of shoes 👟 and I have traded in my expensive car leases 📃💫over 6 times and I am only in my 30s. In fact, after a few months or years of owning and using these items, I have sold them off and moved on to other newer more fancier models etc.

There are issues with this viscous cycle:

Firstly, my tolerance of how much I spend on each item increases through time as I am now moving on to a newer better model 💥. The level of satisfaction I get with each upgrade becomes less satisfying 😔 as I have normalised that buying experience. This is simply unsustainable. As you get used to buying new bags or new watches, each time is less memorable than the first time you did so.

Secondly, the few big purchases that DO have an emotional connection with, again, is actually linked to an event or experience, like a graduation present 👩‍🎓, or the watch I wore at my wedding 💍. Further reinforcing the idea that I should be focusing on my experiences and journeys in making memories.

Thirdly, when I dig deep in myself and look at why I enjoy buying new things. Yes I am not going to lie, some part of it is because I actually like these things and that's absolutely fine, and great! But I have a say that a lot of it is to make myself look a certain way to alter what other people think of me. 😎 I want to look good when I have those thing on or with me. Quite a bit, is about doing it for others to see. When I really dig deep, I have to say that probably only about 30% of my purchases I truly fundamentally enjoy the thing itself. That means 70% of such spending, is probably for other people instead. These items do not fundamentally make my life a better one.

Now that does not sound like a good use of money to me. That money, could have gone to be invested and grow into even more wealth in the future. There is an opportunity cost with all this lifestyle cost.

Ultimately, it's about balance ⚖️ and where your values lie

It's important to note that this isn't an all-or-nothing proposition. We can certainly enjoy material possessions while prioritizing experiences. The key is to strike a balance and make conscious choices about how we allocate our finances and resources. Instead of focusing solely on accumulating more things, we can invest in experiences that truly enhance our lives and create lasting memories. It is about using money to enrich your life, not to enslave your life.

For instance, instead of buying a new toy for a child, consider taking them on a day trip to a museum, a zoo, or a short holiday abroad. These experiences can spark curiosity 🧐, ignite imagination 🤔, and foster a love of learning 🧠. Similarly, instead of upgrading a new car, consider taking a road trip to a nearby town or city. This can be a fun and affordable way to explore new places, create lasting memories, and bond with loved ones.

As we shift our focus from things to experiences, we can unlock 🔐🗝 the true potential of our wealth and money. Remember, memories are what defines you as a person, not the items you have purchased.