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Money buys happiness when spending fits our personality

Accepted version
Peer-reviewed

Repository DOI


Type

Article

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Authors

Matz, SC 
Gladstone, JJ 

Abstract

In contrast to decades of research reporting surprisingly weak relationships between consumption and happiness, recent findings suggest that money can indeed increase happiness if it is spent the “right way” (e.g., on experiences or on other people). Drawing on the concept of psychological fit, we extend this research by arguing that individual differences play a central role in determining the “right” type of spending to increase well-being. In a field study using more than 76,000 bank-transaction records, we found that individuals spend more on products that match their personality, and that people whose purchases better match their personality report higher levels of life satisfaction. This effect of psychological fit on happiness was stronger than the effect of individuals’ total income or the effect of their total spending. A follow-up study showed a causal effect: Personality-matched spending increased positive affect. In summary, when spending matches the buyer’s personality, it appears that money can indeed buy happiness.

Description

Keywords

Big Five personality, consumption, happiness, psychological fit, self-congruity, Adult, Algorithms, Economics, Emotions, Female, Follow-Up Studies, Happiness, Humans, Income, Individuality, Male, Middle Aged, Personality, United Kingdom

Journal Title

Psychological Science

Conference Name

Journal ISSN

0956-7976
1467-9280

Volume Title

27

Publisher

SAGE Publications
Sponsorship
S.M. was supported by the National German Academic Foundation; J.G. was supported by the Economic and Social Research Council.