Though Not Easy In Times Like This, Spending Money on Others Makes You Happy (or at least Happier)

As the stock market endures record plummets, job losses sky rocketing, housing prices free falling and the world entering into recession, spending money on others might be the furthest thing on your find. But if you can manage to do so, it might be the surest path to a much needed happiness boost. However recent Canadian-led research, published in the prestigious journal Science, says that spending your money on other people makes you happier than spending it on yourself.

Researchers have long shown that (unless people are exceptionally poor) getting more money brings surprisingly small gains in positive feelings. This has led to the hypothesis that the happiness "holdback" was not inherent in money itself but instead with what people did with their money (which not surprisingly is spend it on possessions for themselves). Specifically:

Recent surveys, the study notes, have shown people in Western societies have experienced few gains in their overall happiness level over the past several decades, despite a dramatic surge in real income.

Previous research also suggests that any money earned above the amount needed to cover basic needs generally buys little in the way of extra joy, even when it is used to purchase expensive cars and baubles.

"We suggest that how people spend their money may be at least as important as how much money they earn," the study says.

These results are not surprising to Tal Ben-Shahar, author of the book "Happier" and teacher of the positive psychology course on happiness that is Harvard's most popular class, who noted "There's so much benefit to the person who contributes to others that I often think that there is no more selfish act than a generous act."

For more on happiness read LifeTwo's week-long series of "How to be Happier." We also suggest regular reading of Gretchen Rubin's "Happiness Project" blog.