Does saving money make you happy?
There have been plenty of debates about the links between money and happiness.
Some new research has added weight to the argument that a regular savings habit contributes towards a general feeling of happiness.
According to the latest Lloyds Bank Quarterly Savings Report, there is an overlap between savvy saving behaviour and personal wellbeing.
The report found that regular savers feel happier and less anxious than their non-saving counterparts.
They found that nearly half of people report financial issues as being their biggest source of stress. This is particularly acute for younger people, with 58% of 25 to 34 year olds claiming money matters are their biggest source of stress.
The survey also found that almost three in five 35 to 44 year olds also claim to be anxious and worried about their personal finances.
Despite this prevalence of financial stress, the report also identified a clear link between happiness and positive finances.
Nearly three in four regular savers said they felt happy over the month prior to being asked, opposed to just 36% of non-savers.
Over three quarters of regular savers say that getting into the savings habit made them feel less anxious over their personal finances.
For the youngest age group, the impact is even more apparent.
86% of 18 to 24 year-old regular savers said that a regular savings habit made them feel less anxious and insecure about their personal finances.
In stark contrast, for those that don’t save, 68% say that they would feel less worried if they did save regularly.
Planning to save is an important contributor to happiness too. More than half of savers agreed that having a savings plan had a positive impact on their mental health, rising to 64% for younger savers.
The mental health aspects of personal finances are important to consider, with one in four people in the UK being affected by mental health in any given year.
Of these people, around four million will also struggle with their financial wellbeing.
Mark Rawcliffe, Head of Savings, Lloyds Bank said:
Getting into the savings habit can not only help your finances, but it can also ease financial worries and reduce stress for many. Having savings provides peace of mind that there is a financial buffer for any unexpected costs arising or reassurance of the ability to pay for something if you are saving up for a longer term goal. Putting a small amount away each month in a regular savings account is often a good first step on the path to building your savings pot.
Despite the fact that 83% of people believe it’s important to save for the future, only 61% of people still feel that one of the reasons for not saving more is that they don’t have enough money left to be able to save.
Does regular saving improve your feelings of happiness and reduce the stress associated with money?
