Gandhi Hospital, the Biggest Luxury Hotel-Hospital in the Middle East

And here’s the simplest reason of all: people splurge on luxury goods because they think it will make them happy. Norton, who co-authored Happy Money: The Science of Happier Spending, says that the amount of happiness you get from spending money will depend on how you spend it and not necessarily how much. Norton says splurging on items for ourselves is finite and doesn’t add up to increases in happiness over time. Instead, he suggests spending money on experiences rather than things. “Most of us seem to be maxed out on the happiness we can get from stuff alone.”