Allocate part of your values budget to others
Prosocial spending — money spent on others — generates more lasting satisfaction per dollar than equivalent self-spending.
Key takeaways
- What it is: Prosocial spending — money spent on others — generates more lasting satisfaction per dollar than equivalent self-spending.
- Why it works: Spending on others activates social connection and reinforces the sense of meaning and competence that self-determination theory identifies as the primary drivers of durable wellbeing. The effect is partly because social spending is more varied (you customize to the recipient) and partly because it strengthens relationships — a category consistently associated with the highest wellbeing returns. The satisfaction also does not adapt as quickly because the experience is embedded in relationship memory, not material ownership.
- Evidence: Backed by randomized trials / meta-analyses.
- Avoid: Treating prosocial spending as a separate moral category rather than a genuine wellbeing investment — it belongs in the values budget alongside any other high-return spending.
Why it works
Spending on others activates social connection and reinforces the sense of meaning and competence that self-determination theory identifies as the primary drivers of durable wellbeing. The effect is partly because social spending is more varied (you customize to the recipient) and partly because it strengthens relationships — a category consistently associated with the highest wellbeing returns. The satisfaction also does not adapt as quickly because the experience is embedded in relationship memory, not material ownership.
How to do it
- 1Allocate a deliberate line in your values budget for giving and social spending.
- 2Prioritize direct giving over anonymous donation for the wellbeing benefit — connection is part of the mechanism.
- 3Keep amounts specific and intentional: a $30 thoughtful gift generates more satisfaction than $30 added to a charity payroll deduction you do not think about.
What the evidence says
RCT / meta-analysisExperimental studies by Elizabeth Dunn and colleagues found that participants who spent money on others reported higher happiness than those who spent on themselves, controlling for the amount spent.
Honest caveat: The original studies used relatively small amounts and short time horizons. Effect sizes vary with the nature of giving and the recipient relationship; obligatory giving does not show the same benefit.
- — Dunn, Aknin & Norton (2008), "Spending Money on Others Promotes Happiness," Science
Common mistake
Treating prosocial spending as a separate moral category rather than a genuine wellbeing investment — it belongs in the values budget alongside any other high-return spending.
IX Coach tracks prosocial spending alongside your other value categories and reflects its contribution to your satisfaction data, so the wellbeing return is visible rather than assumed.
Practice this with IX Coach →