According to Lara Aknin and Elizabeth Dunn, sociologists at the University of British Columbia, and Michael Norton, a psychologist at the Harvard Business School, how people spend their money may be at least as important as how much money they earn. In particular, spending money on other people (buying flowers for your spouse rather than an MP3 player for yourself) or on a cause (donating to a religious institution rather than going for an expensive haircut) can actually increase our subjective well-being.11 In fact, Dunn and Norton propose turning their findings on what they call
