By Caitlin Kelly
This piece in The New York Times piqued my interest:
American consumers are putting what little extra money they do have to spend each month into eating out, upgrading their cars or fixing up their homes, as well as spending on sports gear, health and beauty. Spending at restaurants and bars has jumped more than 9 percent this year through July compared with the same period last year, and on autos by more than 7 percent, according to the agency.
Analysts say a wider shift is afoot in the mind of the American consumer, spurred by the popularity of a growing body of scientific studies that appear to show that experiences, not objects, bring the most happiness. The Internet is bursting with the “Buy Experiences, Not Things” type of stories that could give retailing executives nightmares.
Millennials — the 20- and 30-something consumers whom marketers covet — would rather spend their hard-won cash on out-of-town vacations, meals with friends, gym memberships and, of course, their smartphones, many surveys suggest.
I’ve been thinking about this a lot as we’re finally, gratefully, at a point in our lives we need very little additional stuff. We’ve renovated two rooms of our apartment and own an array of sports gear, art supplies, camera equipment, the things we use for pleasure and for work. (We do need to replace our old car.)
It’s a huge relief.
I’ve never been a mall rat, the sort of person whose favorite activity is shopping. I enjoy it and sometimes take an entire day to do it, but rarely come home with more than one or two things, and usually nothing huge or expensive.
Like everyone, I have specific weaknesses — anything seriously antique, jewelry and lovely things for setting a pretty table.
We’ve also saved really hard for years for our retirement, so can now release a bit more of our income for pleasure; saving 15 per cent a year is no fun, but — yes, really — it adds up.
I’m more eager now to spend what extra money we earn on travel, dining out, enjoying the many plays, concerts, dance performances and conferences available to us in and near New York City. We do not have children or grandchildren, nor, as many of our younger friends do, huge student debts to discharge. Frankly, we feel like outliers — we are very far from 1%ers but we’re not panicked about money the way many people are; the average American has saved stunningly little for retirement.
In the next few months, we’ll attend a weekend workshop (for business purposes); travel back to Canada (by car), attend a few shows and concerts. We hope to be back in Europe after Christmas for several weeks.
My Dad heads off soon for a month sailing with a friend in Greece; at 86, with a new hip, he’s lucky enough to have the good health, strength and finances to keep enjoying his life. In this regard, he’s very much a role model.
How many things do you want to own? How many experiences would you like to enjoy?
Unless you’re wealthy, every expenditure of money means making a choice — the time needed to invest in earning the taxable income to buy the stuff, store the stuff, clean and polish and upgrade the stuff — or an amazing afternoon/evening/week/month/year creating indelible memories.
We spent a recent Sunday in Manhattan (a 40 minute trip into the city from our home) seeing a show, On The Town, on Broadway, and splurged on box seats, at $101 each. I felt like royalty — they offered amazing sightlines and no squished knees; we sat in comfortable elegant Louis XIV-style armchairs. Before the show, we stopped in at Sardi’s, the classic, old-school bar and restaurant, for a Bloody Mary and a snack.
What a lovely, lovely day, creating memories we’ll cherish for years to come.
I’ve never once regretted any of the money I’ve spent on travel or meals or a day of skiing or a game of golf. But I’ve deeply regretted the money I’ve wasted on a pair of too-high heels (worn once!), clothing that just looked like hell or a really boring book that was, after all, a best-seller.
Nothing that arrives in a box or bag is ever as pleasurable and satisfying to me as walking down a Paris street or having tea with a friend in London or catching up face to face with my sister-in-law in Toronto over a very long lunch.
How about you?
What makes you happier — stuff or experiences?
Any good ones you can share?