They love to tell us that money can’t buy happiness. And by “they”, I mean people who probably have a lot of money. We’re sure we wouldn’t be mad if we had more cash for textbooks and car rego.

It turns out there’s a little bit of truth on both sides of the argument. Research from Princeton University found that that money made people happier up until the US$75,000 per annum bracket (AUD$95,000). After that, any increase in wealth didn’t make people any happier. Life is just as easy with a $95,000 salary as with a $1 million salary.

So, in that context, it’s a yes and a no. But there are some ways that money does buy you happiness.

Buy Your Time

Yep, an effective way to buy your own happiness is to spend it on saving time. This means if you take ubers instead of the train, order delivery instead of pick-up, spend the extra gym fees on high intensity 45 minute work-outs instead of going to a regular gym, you’re investing in your happiness. The same goes for hiring a cleaner to clean your house for you.

A recent study saw researchers give two groups of people $40 to spend over a weekend. Those who were told to spend their money on ways time-saving activities had a more positive overall experience than those who spent it on material goods.

So you never have to feel guilty for spending money on a taxi again. You’re welcome!

Buy Things For Other People

We’re sure you already know this, but spending your money on other people is a surefire way to get joy from it. Which means giving a gift to others is basically like giving a gift to yourself.

Researchers gave students a bunch of money and told half to spend it on themselves, and the other half to spend it on others. And yep, you guessed it, the half that spent the money on others felt happier about their experience.

Buy Experiences

For those who’ve been bitten by the travel bug, this one shouldn’t come as a shock. Buying experiences has been proven to bring a higher level of satisfaction than buying material possessions like cars and handbags.

According to Mark Holder, a professor at the University of British Columbia, we can quickly become accustomed to material things and get sick of them. Experiences, on the other hand, can be reminisced on and remembered through photos and memories.

So yep, this is basically a free pass. Spending all your money on travel is a very good idea.

h/t: Psychology Today

(Lead image: The Great Gatsby/Warner Bros.)