In this first of six special episodes, we revisit Talking Shop, the 2015 ABC podcast I hosted with Kirsten Drysdale. The themes we explored — how businesses shape our choices, the psychology behind persuasion, and the tricks of the trade — connect directly to what It’s Not Real is all about. In this episode, we explore whether money can buy happiness and why it depends on how you spend it.

We start with ‘shopper’s high,’ looking at how dopamine, often mistaken for a pleasure chemical, actually facilitates the anticipation and reward system that drives our behaviour. But because the buzz is short-lived, material purchases rarely provide lasting happiness.

That’s where affective forecasting comes in—the way we misjudge how future events, like winning a game or making a big purchase, will impact our happiness. More often than not, we get it wrong, which is why retail therapy can leave us feeling flat.

So how can we spend money in ways that actually make us happier? The research points to one clear answer: buy experiences, not things. Experiences create lasting memories, evolve over time, and often involve other people, making them far more valuable than physical objects.

But there’s a catch. A 2014 study suggests that for some people—so-called ‘material buyers’—neither experiences nor material goods bring long-term happiness. I put this theory to the test with my own experience: a fancy winter coat that still brings me joy every time I wear it. Paul explains why—its infrequent use, emotional attachment, and social reinforcement all play a role.

Ultimately, happiness isn’t just about what you buy—it’s about how and why you buy it.