A new study suggests that the power of positive thinking could also have a positive effect on your bank balance.
The Motley Fool reports:
A whopping 90% of optimists say they’ve saved up for a major purchase, compared to just 70% of pessimists. And 61% of optimists have started an emergency fund, while only 43% of pessimists have done the same. Optimists are also more likely to find ways to save even when money is tight, with 75% saying they’ve gotten creative when it comes to saving money, compared to 60% of pessimists who have done so.
This data comes from a recent study by Frost Bank and positive psychology researcher Michelle Gielan that indicates optimists are seven times more likely than pessimists to have “greater financial health.”
Why should this be the case? Well, optimists might be more likely to believe that they can make positive choices about their future — and this includes the choice to save for that future.
Or, as Frost Bank puts it:
Optimists aren’t perfect. They still experience financial stress (81 days a year on average), and most have only a rough financial plan (54 per cent) over a detailed one (35 per cent). They find simply making progress toward financial goals matters – 58 per cent feel optimistic about their personal finances because they are making progress towards financial goals.
If you are more of the pessimistic type, it is possible to train your brain into thinking more positively—or at least trick it into temporary optimism. It all comes down to the way you choose to perceive the world (or the way you tell yourself you’re going to perceive the world). Do you look for dark clouds or silver linings? Do you think the worst of others, or assume the best?
Optimists, as Frost Bank reports, are more likely to view negative events or financial setbacks as learning opportunities—and then use what they’ve learned as a way to recommit to their financial goals.
What about you? Do you consider yourself an optimist, or a pessimist? Has your outlook on life affected your financial habits, and have you ever changed your outlook on life by changing your financial habits — or vice versa?