Bangalore: While many of us would've wondered if money could really buy happiness. Well money definitely gives you a sense of overall satisfaction with life. It depends on you whether income effect on happiness results largely from the things money can buy or from comparing one's income to the income of others. Despite having that income you and you find yourself not living that perfect happy life, it shows you aren't spending your money in the right way. A vast majority of us are making incorrect predictions about how money will make us happy, so we spend it in ways that we think will make us happy, but they don't. However, if we follow certain principles of spending, money indeed will make us very happy. Buy Experiences Instead of Things Most people don't know the basic scientific facts about happiness about what brings it and what sustains it and so they don't know how to use their money to acquire it. People Show grater happiness when they reflect on the experience purchase rather than the material purchase. The reason behind this is that, we as human get accustomed to things very quickly. The excitement on purchasing a new item last for not more than two days or so. In contrast, an experience takes us out of our everyday and leaves a lasting impression.