We find that only one component of consumption expenditure is positively related to happiness—leisure consumption. Moreover the association between leisure spending and happiness is sizable: our estimates suggest that a $20,000 increase in leisure spending is roughly equal to the happiness boost one gets from being married. By contrast, all other components of consumption (which are primarily about meeting one’s material needs) appear to be unrelated to happiness. The finding that increased material well-being is unrelated to happiness lends support to the hypothesis (posed by Gilbert and Wilson 2007) that individuals quickly adapt in terms of their happiness to increases or to decreases in the level of their material well-being. Since our estimates are based on cross-sectional, not panel data, we are likely observing people at their steady-state level of happiness.