Is Saving Money Good for your Mental Health?

Saving Money and Mental Health

Stronger financial security and stronger savings contribute to a healthier mind, with a recent study from the University of Bristol finding clear links between saving money and personal wellbeing.

If you suffer from anxiousness, stress, lower life satisfaction or unrest, finding ways to save even small amounts of money here or there can have a large impact on mental health.

How does money affect your mental health?

YouGov found that those with less than £1,000 in savings were almost three times more likely to feel they have poor mental health compared to those with more than £1,000. This is reflective of a wider trend between the relationship of money and happiness – the less stable your financial situation, the unhappier you will ultimately feel.

This is just as true in reverse. Studies have shown that more financial security lessens the likelihood of developing symptoms of depression.

Other noticeable symptoms of having little or no savings are elevated levels of anxiousness, irritability, lack of sleep due to stress and feeling despondent about the future.

Long story short – the sooner you begin saving, no matter how small the amount, the happier you will feel in the long run.

Does saving make you happier?

The relationship between poor mental health and difficult saving is cyclical – those of us who experience difficulties regulating our mood may find it harder to save, feeling discouraged to make changes to our spending habits.

The health benefits of saving money don’t only come after a substantial amount has been saved, either. The effect can be felt straight away, with studies showing that the act of saving is just as important as the amount saved. Depositing any amount of money can increase levels of happiness, which will have a positive effect on your mental health over a consistent period.

Many find saving money daunting, but saving doesn’t have to mean huge lifestyle changes, tightening the purse strings and living off a shoestring budget.

There are plenty of apps and services that track the pennies so you can count the pounds, rounding up costs – such as a £3.99 meal deal up to £4.00 – and depositing the penny in a secure location.

This is a pain-free way of accumulating savings over time, minimising the impact on your budgets whilst automating the way you save.

Similarly, Moneywise can help incentivise pain-free savings with payroll saving accounts. If your business is signed up, payroll saving schemes take an agreed-upon amount from an employee’s wage and automatically deposit it in a secure savings account – removing the need for managing your savings manually.

This is ideal for those who may feel overwhelmed by the prospect of managing their savings, allowing them to watch their savings grow and focus on budgeting the remaining amount of their monthly wage.

One of the easiest ways to begin saving money is by rounding up costs and depositing them in a secure savings account.

Saving for the future

Saving for the future is a crucial way to protect yourself from unexpected costs, as well as from the anxiety and stress that arise with them.

Whether it’s a broken-down car, washing machine leak or your child has suddenly outgrown their school uniform, unexpected costs can wreak havoc on our mental peace, affecting everything from sleep to our resting heart rate.

Saving small amounts over a long period can insulate us from the unexpected costs of life, allowing us to rest easy and focus on the now – without worrying about tomorrow.

Get in touch

Do you struggle with money, need an urgent loan or want to find out more about our credit union? Get in touch by calling 0330 165 5337 or simply email admin@moneywise.org.uk

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