We all know we need to save more money, but did you know that saving money actually has positive psychological effects? For instance, having money saved in an account is linked to higher levels of happiness. Saving money can actually lower your stress level and has the power to change your outlook on life from a negative to a positive.
Saving Money Takes Self-Control
When you are intentionally saving money, you are making a conscious decision to say "no" to instant gratification and say "yes" to a future need. This is a form of personal discipline that many people struggle with. The ability to have self-control when managing money creates a feeling of accomplishment which spending that same money simply cannot match. This is because spending is often linked more closely to the impulsive part of your brain, which research says is fueled by our anxiety. Self-control and discipline, on the other hand, are linked to areas of the brain that influence your self-esteem.
Saving Money Builds Confidence
Setting a goal and achieving it can give your confidence levels a real boost. The bigger the goal, the more confident you feel after reaching it and the higher your self-esteem. This is true for any goal, including savings goals.
If you haven’t seriously saved money before, start small. Set easily-achievable goals in order to increase your confidence and help yourself develop the self-discipline needed to accomplish bigger goals. After you’ve crushed savings goal after savings goal, you will have no doubt in your mind that you have the discipline to keep going toward saving more money.
Saving Money Creates Peace of Mind
Research suggests that one of the best ways to create peace of mind about your future is to have a healthy savings account. When you have money in your savings account to cover unexpected expenses, you become less anxious about your future. Thereby, lowering the level of stress in your life and giving you a greater sense of peace.
Interestingly, having a greater sense of peace can actually help you save more money. When you’re less stressed, the likelihood that you will make impulsive financial choices is lower.
Saving Money Yields Optimism
When you feel confident and have less stress in your life, your overall view of life tends to be more optimistic. As you are building your savings account along with your confidence, you’ll start feeling less like life is a never-ending cycle of living paycheck-to-paycheck, and more like you are in control of your money.
You’ll be able to see your savings goals with a longer term lens, meaning you’ll be end up being less impulsive in your spending. When you’re less impulsive you tend to feel like you have more control over your finances and you’ll feel less anxious when it comes to managing your money.
Save Money and Gain Peace of Mind With First Alliance Credit Union
Saving money creates a perpetual cycle that provides essential support for a psychologically healthy brain. It starts with self-control, which creates a sense of confidence when you achieve your goals, even if they are small. In turn, that confidence fuels your ability to meet bigger and bigger savings goals, increasing your confidence and creating financial peace of mind.
When you have peace of mind over your finances, your view on life is far more optimistic. The more optimistic you are about life, the less anxiety you feel and less likely you are to make poor financial choices. Ultimately, saving money is good for your wallet and your brain.
If you’d like help with starting a savings plan, contact our Member Advisors today. They can provide you with the guidance you need to meet your financial goals and start being financially confident.