Tue, 7 May, 2019
How positive thinking can help you save more
It might seem like wishful thinking, but a study has found that optimism can truly put your finances in a better place.
A survey of more than 2,000 Americans discovered that optimistic people tend to manage their money better and, consequently, improved financial health.
The study first assessed the respondents’ optimism level, and then evaluated their financial wellbeing with a separate test.
It found that 90 per cent of the optimists had saved up for a major purchase, compared to only 70 per cent of the pessimists. The optimists were also more likely to set aside some fund for rainy days – 61 per cent of the optimists had started an emergency fund, while only 43 per cent of the pessimists had done the same.
“What’s exciting to me is the research uncovers money management behaviors that optimists have and others can adopt,” said positive psychology researcher Michelle Gielan, who worked on the study in partnership with Frost Bank. “This is significant because previous research proves that you can train your brain to be more optimistic by adopting optimistic behaviors.”
So how exactly can one be a financial optimist? The researchers identified three traits: being comfortable to talk about money and seek financial advice, striving for progress rather than perfection, and learning from setbacks and challenges.
“By implementing these simple habits, you can not only improve your financial health, but potentially decrease your financial stress,” said Ericka Pullin, Senior Vice President, Research and Strategy at Frost Bank.