Regular savings habits enhance sleep and life satisfaction, study reveals
A recent study conducted by Bristol University academics suggests that regular savings, even small amounts, can enhance sleep quality and overall life satisfaction. The research found that individuals who set aside a monthly sum felt more relaxed and optimistic about the future. Interestingly, even low-income earners who saved regularly reported similar levels of life satisfaction as wealthier non-savers.
Savings habits remain steady despite economic challenges
The study emerges at a time when one in four UK adults reportedly have savings of less than £100 (₹10,683). Despite the difficulties of saving money due to escalating bills and food prices, approximately six out of 10 people continue to save. Charities argue that even on a small income, setting money aside enhances financial resilience. Andrews Gall, head of savings at the Building Societies Association,emphasized the importance of encouraging everyone to save whenever possible, citing the report findings.
Regular savings lead to reduced anxiety, study indicates
The report by Bristol University's Personal Finance Research Centre suggests that regular saving contributes to improved life satisfaction. This is primarily due to reduced anxiety about money, decreased likelihood of problem debt, and an enhanced ability to handle unexpected events. However, the researchers also acknowledged the complexity of the situation with factors such as existing savings and changing circumstances for different age groups playing a role.
Savings habits impact mental wellbeing, research shows
The research incorporated various studies, including one that tracked the savings habits of thousands of people over a decade. It indicated an improvement in life satisfaction from saving but also highlighted the negative impact when not saving. However, it was noted that other life events like moving home or getting married had a more significant impact on mental wellbeing.
Simplifying savings accounts could encourage saving, report suggests
The report also advised providers to simplify savings accounts and use incentives to encourage customers to save. It emphasized shopping around for the best account as loyalty often doesn't pay due to old savings accounts having among the worst interest rates. The best deal is not the same for everyone and depends on individual circumstances. Higher interest rates are offered if money is locked away for longer, but this may not suit everyone's lifestyle.
