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It’s common knowledge that money can’t buy happiness. But did you know that being deliberate about your spending can greatly increase your happiness – and the happiness of people around you? Keeping this in mind, here is a list of investments that will pay out in the long run by making you happier.

Buy Experiences, Not Things

Some could argue that buying an afternoon of fun is a waste of money when compared to investing in a new piece of furniture – or any other kind of physical item – that will be used and enjoyed for years to come. But when researchers told people to spend a certain amount of money each week on either experiences or things, the first group was happier than the second.

Because the “thing” stays the same, we don’t notice it as much, but experiences give us more variety. They also give us extra pleasure by making us look forward to them long before they happen. And, of course, a day trip makes you think of good times.

Spend Money On Other People

It may appear counterintuitive, but research has shown that people report higher levels of happiness when they spend money on others as opposed to when they spend money on themselves. And you don’t need to spend a significant amount of money in order to experience the positive effects of “prosocial spending.”

You could buy someone a gift, but you could also buy cakes for the whole office to enjoy, or you could treat someone to lunch, for example. Whatever you do, it will make you feel good.

Donate To Charity

Speaking of the joys of giving, supporting a cause you believe in is a wonderful way to add to your own life’s bounty. To feel more involved, give to groups that are actually making a difference, whether they be political or charitable. You’ll be a happier person, and you’ll be helping to make the world a better place, too. Those who gave charitable donations rather than spending the money on themselves reported an increase in happiness, according to a study from Harvard Business School.

Spend Money On Your Future

Being present in the moment is a wonderful way to live, but it shouldn’t come at the expense of your future contentment. Putting money aside now will provide you peace of mind and open doors to new possibilities later on. It can also help you quit worrying about your financial stability because you know you have a plan in place.

One option here is to spend money on your education and go back to school or work towards a qualification or certificate that will enhance your career. You can also start to put money towards your retirement as another example of what it could mean to spend money on your future.

Pay In Advance

When possible, prepaying for an experience like a vacation separates the sting of spending from the thrill of having or accomplishing. By the time your trip finally arrives, you’ll feel as if you barely spent any money at all, free to focus solely on its enjoyment.

On the other hand, if you buy something on credit, you’ll have to deal with the discomfort of making payments after you’ve stopped enjoying the item.