Experiences extend happiness longer
The results of a 2009 study showed that positive experiences generally provide a stronger sense of happiness than material things.
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“Experiences become part of our personal identity – we describe ourselves through what we have lived through. Saying ‘I am a person who traveled to Japan’ sounds different than ‘I am a person who has a new phone,’” says psychologist, founder of “Šaukštas proto” Monika Kuzminskaitė.
According to her, experiences connect us with other people. A shared trip, concert, or training creates common memories that strengthen relationships. Moreover, experiences are harder to compare with each other, so we less often fall into the trap of competing with others.
“Our memory function also contributes to this. We can recall experiences many times and thus relive positive emotions. Negative aspects of experiences – delayed flights, lost items, or unexpected changes in plans – we tend to forget over time, so even a not entirely successful experience can become a warm memory as time passes,” emphasizes M. Kuzminskaitė.
Things win when they solve real problems
The fact that experiences are remembered more fondly over time does not mean that we will view purchased items negatively. However, we more often associate experiences with what we value or consider meaningful time spent – this meaning is less often attributed to things.
Still, if people experience a lack of income, material purchases bring them more happiness, and it can be experienced many times by repeatedly using the purchased item.
“Things also win when we use them regularly, they solve important daily problems, reduce household stress, provide more security and comfort, or allow us to frequently experience positive moments,” says M. Kuzminskaitė.
Things can also become a bridge to new experiences. For example, buying a bicycle or car opens up more opportunities for travel, leisure, and new activities.
Loans help meet everyday needs
What psychologists call practical and reasonable purchasing logic is also reflected in the real borrowing habits of Lithuanians. According to Eimantas Palionis, Director of Risk Management Department at “GF bank,” Lithuanian residents most often borrow for decisions that improve daily comfort and quality of life.
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“Most of them, when borrowing, assess what portion of the family budget they can allocate to loan or leasing payments and do not take loans recklessly. Surveys show that Lithuanians more often take loans to meet essential needs and less often for non-essential purchases,” says E. Palionis.
Surveys conducted on behalf of “GF bank” show that the most common purpose of consumer loans is the purchase of home and household appliances, second place is vehicle purchase. Also, a large portion of clients take loans for home repairs or renovations.
However, not all decisions arise from clear and thoughtful needs.
Social pressure – an invisible reason to buy
M. Kuzminskaitė says that another common motive for buying is the desire to fit in.
“When buying things, we get caught in the so-called hedonism cycle – we acquire what others have, becoming ‘one of them.’ But satisfaction depends not only on our own feelings but also on how others evaluate our purchase. If this evaluation does not meet expectations – and over time this usually happens – there arises a desire to acquire a newer and more expensive item. Then the cycle starts again,” explains M. Kuzminskaitė.
According to her, this mechanism works weaker with experiences: even two weekends in the same foreign city can be completely different.
“This does not mean that people do not compare themselves or that ‘trendy’ experiences do not exist, but the influence of social pressure in this area is usually smaller,” adds the psychologist.
How to make a thoughtful decision?
According to the Director of Risk Management Department at “GF bank,” before borrowing it is important to assess your financial capabilities – whether monthly payments will not cause additional financial strain.
“If a loan helps solve an important problem, improve quality of life, increase mobility, comfort, or professional opportunities, it can become a useful financial tool. But in every case, it is important that the financial commitment matches the person’s income, needs, and long-term plans,” emphasizes E. Palionis.
Psychologists and financial specialists agree: the best borrowing decision is one that positively answers several simple questions:
- Does what I plan to purchase align with my own values and identity?
- Will I actively use the purchase?
- Will the purchase strengthen my social connections?
- Does the purchase solve a real daily problem?
- Is the decision based on my true needs and desires, not on the desire to keep up with others?
