Saving money, even small amounts, can significantly improve your life, suggests a new report from Bristol University. The study found regular savers reported better sleep, increased optimism, and overall higher life satisfaction compared to non-savers, regardless of income level. This is attributed to reduced financial anxiety and increased resilience to unexpected events. Hosts Patricia Wu and Jessica Reyes break down the story with Rene Brent on Psychology Behind the Headlines.
Fiscal responsibility and mental well-being
While saving has become more difficult due to rising living costs, the benefits are clear. Researchers analyzed data from thousands of people over 10 years, finding a correlation between saving and improved mental well-being. Notably, significant life events like marriage had a larger positive impact on mental health, while job loss or having children had a larger negative impact.
Long-term mindset
Although interest rates on savings accounts have improved, they are expected to fall soon. However, financial experts still encourage saving whatever possible, emphasizing its long-term benefits. The report also recommends that financial institutions simplify savings accounts and incentivize saving to help people build financial resilience.
For those looking to save, it’s crucial to shop around for the best interest rates and consider different account options based on individual needs and circumstances.
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