- October 18, 2022
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Improve Your Mood By Saving Money This International Happiness Day With Our Top Tips
Managing your money helps your mental well-being because it: 1. Reduces your stress.2. Aids in building honest relationships.3. Gives you…
Managing your money helps your mental well-being because it:
1. Reduces your stress.
2. Aids in building honest relationships.
3. Gives you confidence.
4. Builds optimism.
5. Puts you in control.
Reduce your stress by setting a little money aside every month
The stress of your car giving up on you without money in the bank for a new down payment can cause lasting anxiety every time you hop into your car. But a broken-down ride is just one of the financial emergencies people experience every day. According to Bankrate, 56% of Americans could not cover a $1,000 emergency from their savings.
Constantly worrying about the “what ifs” takes a severe toll on your mental health, and financial stress has even been linked to depression. Setting aside a little money every month can be the easiest way to protect your mental health.
One of the best ways to lighten the load on your shoulders and reduce daily stress is to open an emergency savings account and regularly contribute to it. If you’ve never had a savings account, start small with an automated $50 contribution per paycheck. You can set this up through your employer or by setting an automatic recurring transfer from your checking account every payday. Automating savings is essential because you won’t miss the money if you never see it.
Managing money gives you extra confidence
There’s a reason you’ve seen an uptick in social media posts with couples holding signs reading, “Paid off $75K of debt in 9 months!” Accomplishing any goal, especially money goals, feels great because it gives you freedom from financial stresses!
While saving money always requires a little sacrifice and hard work, it’s quite an empowering feeling to know that you’ve accomplished what you set your mind to. Write down your savings goals, create a plan to get there and share it with your closest friends and family—or even on social media—so you can celebrate when you’ve met each specific saving milestone.
Some ideas for SMART (specific, measurable, achievable, relevant and timely) goals include:
1. Build a $1,000 emergency fund in ten months.
2. Pay off $3,000 in credit card debt by the new year.
3. Increase credit score by 40 points over two years.
Another benefit to building a budget and saving money is that you now know exactly what you need to make your dreams happen. Having a clear vision can help give you the confidence to ask for a raise, talk to your boss about a promotion or even negotiate a better salary offer at a new job.
Saving money gives you an optimistic outlook
Does saving money make you happier? While happiness is subjective, think about it this way: It can be challenging to look forward to each day if you feel like you’re living an endless loop of working and living paycheck to paycheck. Saving even $20 every paycheck can help alleviate fears about the future and give more meaning behind the money you’re working so hard to make.
Starting and building up an emergency fund may help you feel less stressed about finances. Picture the ability to dream about your next car rather than constantly worrying about when your current ride finally gives out. Looking forward to something positive your savings can afford, rather than worrying if you’ll be able to pay the bills in an emergency, can be a game changer for your everyday mood.
Flexible savings puts you in control of your life
Perhaps one of the greatest gifts regularly saving can offer is the ability to take risks and feel free to live the life you’ve envisioned for yourself. If you’ve always been interested in moving across the country, a healthy savings account can provide the funds to make the move when a job offer finally comes through!
Additionally, savings can offer a world of opportunity for you when you least expect it. When your friends decide on a last-minute trip across the country, you can confidently join them, knowing that you have the money to afford the extra expenses without racking up high-interest credit card debt.
