Money actually can buy happiness, according to a new Harvard study.

Michael Norton, a professor at Harvard's business school, says his research found that the more people spend, the happier they are -- so long as they spend on the right things.

Norton says spending on trips and shared experiences with friends and family had a greater impact than buying material possessions.

"Going away together and having fun times and experiences and sharing those things will last a lifetime," says Rosemary Sagonic, the president of West Babylon's Anderson Travel. "Buying a new car or a refrigerator or a television won't fill that."

Kyle Goding, of Ferrari-Maserati of Long Island in Plainview, agrees -- at least in part.

"The cars here obviously do make people happy," Goding says. "But I don't think it's total happiness."