Spending money on others makes you happier than spending it on yourself.

A landmark study published in the journal Science in 2008 by researchers at the University of British Columbia and Harvard Business School provided empirical evidence for this phenomenon. Led by Dr. Elizabeth Dunn, the team surveyed 632 Americans and found that those who spent more on gifts and donations reported significantly higher levels of happiness. This was true regardless of their total income levels.To verify these findings, the researchers conducted an experiment where participants were given either $5 or $20 to spend by the end of the day. Half were told to spend it on themselves, while the other half were told to spend it on others or donate it. Those who practiced prosocial spending reported feeling much happier at the end of the day than those who bought something for themselves.Neurologically, this behavior is linked to the mesolimbic system, which is the brain's primary reward pathway. Functional MRI (fMRI) scans show that when people donate money, the ventral striatum and the septal area are activated. These are the same regions that respond to primary rewards like food or sex, releasing dopamine and oxytocin.Evolutionary biologists suggest this mechanism developed to promote social cohesion. By rewarding altruistic behavior with physical pleasure, the human brain ensures that individuals contribute to the group's welfare. This 'warm glow' effect is a biological incentive that has helped human communities survive and thrive through cooperation for thousands of years.