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Studies

Saving Money the Key to Happiness, Study Finds

David Andrew 5/11/18

If you want to be happier in 2014, you may want to start putting more money in your savings account.

A new survey from Ally Bank suggests people who save more are happier than people who save less.

For this survey, Ally Bank representatives asked Americans about their saving habits and their happiness.

Thirty-nine percent of Americans with a savings account felt very or extremely happy compared to only 29 percent of Americans who didn’t have a savings account. The more money people had in savings, the happier they felt.

People with $100,000 or more saved up made up the majority of respondents who said they were very happy. This makes sense, as more money leads to more financial security.

“Thirty-nine percent of Americans

with a savings account felt very happy. 

However, what was surprising from this survey was earning more didn’t seem to help as much as saving more.

People earning $50,000 to $75,000 a year were about as happy as people earning more than $150,000 a year.

The main factor that seemed to make respondents happy was how much they had saved up, so someone earning $50,000 a year with lots of savings would be happier than someone earning $150,000 a year while spending it all, according to these results.

Next time you’re thinking of splurging on that new outfit or vacation, consider holding off and putting the money in the bank instead. The future you will be happy you did.

Source: theweek.com.

About David Andrew
David Andrew is a former New York Life financial adviser, holding Series 6 and Certified Financial Planner credentials from his years with the company. He also holds degrees in economics and finance from McGill University. David is now a well-published finance writer with special expertise in credit cards and auto insurance. In addition to his work on BadCredit.org, his articles have been featured on eHow, Zacks.com, TheNest.com, Chron.com and other popular sites. When he's not keeping up with the latest news in the world of finance, David enjoys playing tennis and golf.
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