Katharina Buczek
Let’s face it: everyone would like to grow their wealth and watch that number in the bank rise. But did you know that the key to your financial success might be hiding in your psyche?
According to a new study published in Personality and Individual Differences, maintaining a positive emotional outlook can help encourage better money management habits– essentially leading to increased overall net wealth.
Interestingly, past research has primarily shown that having more money is what causes happiness. This study hypothesized and found the opposite, though.
“There is robust evidence that positive emotions actually support and create the behaviors necessary for people to succeed in their financial life,” said Sarah Asebedo, the study’s lead author.
These behaviors might include earning money, exercising control over spending, staying out of debt, and more.
The researchers analyzed data from the University of Michigan’s Health and Retirement Study, which came from three periods– 2008, 2012, and 2016– and resulted in a final sample of over ten thousand observations.
These observations included people’s emotional states– for example, enthusiasm, determination, attentiveness, hopefulness, and activeness– as well as their level of wealth creation.
And the team found that a more positive outlook on life undoubtedly contributes to one’s ability to take control of money management skills and ultimately generate more assets.
“This finding expands our view of the relationship between happiness and money to include the idea that cultivating a happy, full, and meaningful life results in a greater capacity to earn and save money, manage spending, and grow wealth,” Asebedo explained.
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