Experts agree that people tend to be happier when they spend their money on experiences rather than objects. It’s true that some objects are necessary to create certain experiences, such as the way new outdoor furniture can inspire summer cookouts. Below are several other ways that psychology can be applied to your spending habits, making you a happier individual:

Know what you treasure most: The things we value in life tend to fall under four categories – personal, social, physical and financial. Knowing what type of spending category you fall under will help you make better purchasing decisions.

Bigger isn’t better: Instead of making one enormous purchase, buy smaller, more inexpensive things.

Don’t go overboard: Before you start making frivolous purchases, make sure you have enough money set aside for your needs, such as monthly bills and retirement-savings obligations.

Pay down your mortgage: Once you get rid of this financial burden you’ll feel more financially secure.

For more information on how to find financial bliss, please visit AARP.