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Saving Money Could Make You Happier

Nov 27, 2013, 02:59 IST

fotostalker (MFer) via flickr

They say that money can't buy happiness, but saving it might.

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According to a new survey of 1,025 American adults by Ally Bank, saving money can have a significant positive impact on your well-being. Among those with a savings account, 38% report feeling extremely or very happy, compared to 29% of those without a savings account.

And it seems that the more money you save the happier you are. Of those who say they are extremely or very happy, 57% have $100,000 or more in savings, 42% have $20,000 to $100,000 in savings, and 34% have less than $20,000 in savings.

In fact, most people surveyed (84%) say having money saved up boosts their sense of well-being more than eating healthy foods, having an enjoyable job, or getting regular exercise. Perhaps surprisingly, saving money also seems to affect happiness more than earning a big paycheck, since the impact of household income on happiness plateaus at about $50,000.

Savers say socking money away makes them feel better because it helps them face the unknown, gives them peace of mind, makes them feel proud, and gives them independence.

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The only thing that seems to top savings as a feel-good habit, according to the survey, is having good relationships with friends and family.

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