Introduction The use of generosity exercises to improve psychological well-being is a topic whose importance in psychotherapy cannot be overemphasized. Many studies have been conducted in relation to this topic with most of them replicating outcomes in different cultures around the world. However, many of the studies have concentrated more on a particular age group such as children in which the scales for measuring the elements of generosity have not been adequately applied. From the results obtained from studies on generosity, a similar conclusion has been made in that people who are generous experience better psychological well-being as opposed to those who are materialistic. In addition, a number of hypotheses have been put forward to explain aspects such as altruism in an effort to explain how generosity is evaluated. With the outcomes from a number of studies proving fruitful in psychotherapy, more still need to be done to promote understanding on the same in order to enhance its use in enhancing the psychological well-being. Generosity is a virtue which has been defined as the inclination or disposition to act benevolently towards other people (Machan, 1998). The Center for Religion in Society (CSRS) at Notre Dame has further defined generosity as the disposition and practice of freely giving of one’s financial resources, time, and talents which may also include charitable financial giving, volunteering and the dedication of the gift for the welfare of others or common good (Collette & Morrissey 2007). Spencer (2006) argued that generosity is a result of both egoism and altruism in an individual. Generosity represents a central therapeutic factor in terms of psychological well-being as it has the quality of making the mind and heart more receptive and adaptable to change in behavior (Dumont 2008). Psychological well-being is the idea of looking at an individual’s quality of life. There is not a single aspect to psychological well-being and it is best to be viewed as a combination of life satisfaction, affect, balance, self-esteem, moral locus of control and depression (Ryff 1989). Lyubomirsky, King and Diener (2005) describe generosity’s correlation with egoism as a matter of self therapy, although altruism can sometimes be as a matter of obligation. Selflessness and genuine concern for others are both intertwined with feeling good within individuals. When a generous individual sees the positive effects of his or her selflessness, an unavoidable feeling of well-being is evident. This is a psychological effect but it trickles down to all other aspects of life. It is therefore therapeutic to encourage individuals who have a low opinion of themselves to try being generous to others without holding on to things they might not need anymore. This is a crucial step to letting go of the things that most people hold dear and it can be followed by letting go of things that are new or important such as money and valuables (Raatma, 2002). Generosity and Positive Psychology Positive psychology is a branch of psychology dedicated to counteract the studies of the twentieth century, which focused on dysfunction and negative human experiences (Synder & Lopez, 2009). Po