This post on Vagablogging says that spending money on things might not buy you long term happiness, spending money on buying experiences gets you further but spending money on other people goes a long way to keep you happy.

Consider this excerpt, which has always rung true for me. And, I have lived by it – having spent a lot of my money on people. And, I derive lasting happiness from those memories.

Experiences are inherently more social [than buying things] – when we vacation or eat out or go to the movies it’s usually with other people, and we’re liable also to relive the experience when we see those people again. And past experiences can work as a sort of social adhesive even with people who didn’t participate with us, providing stories and conversational fodder in a way that a new watch or speedboat rarely can.