Money On Our Minds | The Psychology of Savings

It controls so much of what we do, how we live, and is the reason why many of us get up and go to work in the morning – money is the be-all and end-all in our lives, and therefore affects our emotions and mental health.
In fact, 35% of people say their money stress has kept them up at night, and 30% revealing that their mood has been affected by stressing over money worries, a new study by online savings service, Raisin.co.uk, has revealed.

Money isn’t far from our minds in general. About 65% of people admit to thinking about it throughout the day, with 28% saying it is consistently on their mind. A further 36% say it plagues their thoughts late at night when they are trying to sleep.

It is not only financial problems that impact the way we think and feel. Many people feel pressure to earn more money, saying that they feel this the most from family (42%) and the workplace (40%).
But, even when our incomings increase, that pressure does not ease. Almost 1 in 4 (23%) say they have felt stress and anxiety to impress at work after receiving a pay rise, which supports the notion that more money does not necessarily mean fewer problems.

Money and its associated pressures and stresses are all-encompassing and are detrimental to our health and relationships. So, how can we tackle this and alter our outlook and relationship with money for the better, no matter our financial situation?

Dr Joe Gladstone, Consumer Finance Academic, UCL, commented: “A sense of financial security is an important component of human well-being. It is, therefore, disturbing that financial distress is so widespread. Building a buffer of savings can help us handle life’s shocks and contributes to greater happiness in our day-to-day lives. As creatures of habit we thrive when we have structure and a plan to follow, so saving money should be automated and made as easy as possible”

Kevin Mountford, a co-founder of Raisin.co.uk, added “From the research, it’s clear to see that without a plan to help you manage your financial future; money dreams can quickly turn to money nightmares. Having a simple plan to get you from savings A to B is one the easiest ways to alleviate money stress.

“Saving even a little each month, but being smart about what types of accounts you save into (high interest with good bonuses) can give you instant satisfaction and also the benefit of seeing your money grow over time.”