Nine ways money can buy happiness

The love of money may be the root of all evil - and lust for material goods can't be much better.

When it comes to status goods in a lifestyle based on conspicuous consumption, there is no natural stopping point. There will always be a bigger house and newer fashions, making for an unfulfilling upward spiral of comparisons with others and more spending.

But when it comes to spending on the things you really need, most people can identify and reach a point of satisfaction. Spending to improve your quality of life is a good investment - meaning that in some circumstances, money can buy you happiness.

Here are nine ways that we think this can happen.

1. Buy a smarter you

By using your cash to go to university or develop your skills, you essentially invest in yourself. From the Open University to adult learning centres, there are courses available for every schedule and budget.

"For thousands of people, investing in part-time study with The Open University undoubtedly offers the route to new lifestyles and careers. An OU qualification can help people to increase their earnings potential, climb the career ladder more quickly and widen their job options," said Neil Coaten, a spokesman for the Open University.

"The OU offers courses and programmes at all levels and costs. Short course fees start at £99 and typical total fees for an undergraduate honours degree are between £3,000 and £4,000, typically spent over six years. Many students also get financial support."

Appropriately, the OU offers a course to develop students' practical financial skills.

2. Buy some free time

If time is money, you can take a pay cut to buy more of it. While some people buy more free time by using a cleaner or a gardener, others give themselves a demotion to work closer to home. If you work out a budget and are willing to sacrifice a few city comforts, you can trade your working life for more flexible hours, less stress and more time out of the office.

3. The price you pay for children

And if you add children to the mix, sometimes what you save in childcare costs will balance out loss of earnings you get by staying at home. While this is not an option for everyone, changing jobs to allow you more flexible hours can make for a happier child and less stress on the daily commute.

Make sure you're taking advantage of all of the paid parental leave you're allowed. The law provides a basic right for parental leave, which employers can improve on as part of a benefits package.

4. Buy some creature comforts

Money spent on pets will be a long-term investment in your own happiness. A four-legged addition to the family will be repaid with love, even after the costs of adopting, vets bills, pet insurance and food are considered.

An RSPCA spokesperson said: "Owning a pet costs a bit of money but it has wonderful benefits. As well as the commitment and companionship you can get from a pet, various studies have also shown that pet owners are often less stressed than those without.

"Walking a dog, for example, can be a sociable activity as well as good exercise. And if you get your pet from a re-homing centre, you get the added warm glow of having helped an animal in need!"

5. Buy some interest

If you don't have enough time for a pet, spending your cash on activities you love will reap its own rewards - and it doesn't have to break the bank. A small amount spent on walking shoes or gardening equipment will buy you many happy weekends.

David Hamilton, who writes the Snappy Crocs Garden Blog, says that anyone can grow a love of gardening on any budget.

"Buying a few tools and plants can be done as a low-cost hobby. Friends and neighbours can supply volunteer plants, either as cuttings or some seeds to grow on from their gardens. The shops like Wilko's have many cheap plants for a few pounds. If you can work out how to grow from seeds, or take cuttings from existing plants you can do it on an even tighter budget.

"Gardening is an equaliser, being a common denominator across the economic classes. You can get as much pleasure after spending £20, as the gardener can who spent £500. It the healing earth on your hands, and the beauty of the plants tended, raised, and watched to flowering," he said.

6. Upgrade and invest in your environment

Sometimes even small investments in material items can bring you happiness dividends. Spending a little on paint can make you happier to stay indoors instead of going out. Items like board games, iPods and proper espresso machines all require an initial outlay, but will probably be worth more to you than the price tag.

Sarah Bush, the shopping editor at MSN agrees that some material items are far from frivolous when it come to the joy they bring. "Recently I've been spending a bit more than usual on cosmetics and toiletries. I bought some wonderful Chanel eye shadows and some heavenly Molton Brown hand wash and hand cream for my newly re-fitted bathroom.

"All of these purchases seemed extravagant at the time but now seem completely worth it - the little bit of extra luxury they provide lifts my spirits every time I use them and makes me feel spoilt before I even step out the door in the morning. Which is much better - in the long run - than treating myself to extra cakes or snacks during the day when I'm feeling a bit low."

7. Spend it on your debt

Paradoxically, most people who successfully use money to buy happiness are those who are financially responsible. Using your money to pay for your debt may mean more evenings in the short-term, but in the long-run, spending on your debt will let you reap happiness rewards.

"To be happy, it is important to get out of debt - especially credit card debt - as soon as you can," said James Ketchell, a spokesman at the Consumer Credit Counselling Service (CCCS). "People often come to us stressed and with their heads buried in the sand over their debt. But once they see the rewards of sticking to their budget with a debt management plan, the stress diminishes."

"Even after a few months, people are happier," he said.

8. Buy good karma

It seems that for every burden and injustice, there are a group of tireless souls that spend their time devoted to the cause. Britons are some of the most generous people with their cash and knowing you've helped lighten someone else's load.

A good way to boost your normal green efforts is to offset your carbon emissions. By planting more trees, offset projects can lead to improvements in the quality of life for a local population - and hopefully, a higher quality of life for future generations.

And it's not only trees that works can help neutralise carbon emissions. Renewable energy, energy conservation and methane capture offsets are increasingly popular.

"If you're an average guy or gal, you're producing about 11 tonnes of CO2 a year just getting from place to place and doing what you do. Buying certificates through organisations like PURE, the Clean Planet Trust, helps fund projects at home and around the world that reduce CO2 through renewable energy generation, forest protection and regeneration. said Simon Moynahan from Xelector, a broker for carbon ofsetting and energy providers.

"They help industry reduce emission, too. A couple of tons is good for the environment and great for all of us," he added.

9. Invest in financial security

An emergency fund and a pension will go a long way to improve your quality of life in the future. Emergency funds should be able to cover at least three months of all of your basic outgoings in case you become ill, need to visit a sick relative abroad or need to fund an unexpected and large repair.

Your emergency funds should be kept in an account that provides easy access and ready money, but still yields higher interest than a current account. ISAs and savings accounts are a fine place to start, but it's always good to seek advice with a financial adviser.

Little amounts of cash over a long period of time make pension payments easy - though it's never too late to start on a nest egg you can spend in retirement. And spending now to get out of work later is definitely one way your money can buy you happiness.