That evening, the participants’ happiness levels were measured. But again, the amount of money did not matter, those who spent it on others felt happier than those who spent it on themselves. “We don't want to suggest that more money would never matter," Dunn said. “It’s just that in our studies we found that how people spent their money mattered at least as much as how much money they received. Indeed, there was no effect at all on the amount of money received [in the two studies]."
Part of the explanation could be that people tend to be made happier by experiences than by possessions, said Sonja Lyubomirsky, author of The How of Happiness, Americans tend to spend their money on possessions, she said, but research shows that the happiness from a bigger house or television set quickly decreases as people get used to the benefits and face the responsibility that comes with ownership. However, taking a friend out to lunch, say, is more of an experience and more likely to bring longer- lasting good feelings. Also, when a person acts kindly, she said, “There are social consequences: You might enhance your friendship. You might make new friends. People might reciprocate."