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Saving good for mental health

Saving good for mental health

Category: Savings
24/08/2018

It may seem obvious to the savers among us, but the latest Lloyds Bank Quarterly Savings Report has shown that regular savers are much more likely to be happy, at 74% compared to 36% of non-savers. Clearly, saving is beneficial in more ways than just the financial.

This may be to do with the fact that 46% said money matters are their biggest cause of stress, with this percentage being even greater among young people – affecting 58% of 25 to 34-year-olds, specifically. At the same time, still 59% of 35 to 44-year-olds said they are worried about their personal finances; no age group is entirely immune to financial concerns.

Getting into the habit of saving may seem like a daunting task at the start, but once you're setting a little aside in a regular saver or easy access account on a regular basis, it's likely that you'll feel less anxious, as 76% reported. Indeed, an overwhelming 86% of those aged 18 to 24 said that saving regularly makes them feel less insecure about their financial situation.

Even those that aren't currently saving tend to agree, as 68% of non-savers said they would feel less worried if they did save regularly. If you're not ready to dive in yet, the research also suggests simply putting a plan in place can help, with 53% of savers agreeing that having a plan has had a positive impact on their mental health (64% among 25 to 34-year-olds).

"Getting into the savings habit can not only help your finances, but it can also ease financial worries and reduce stress for many," Mark Rawcliffe, head of Savings at Lloyds Bank, said. "Having savings provides peace of mind that there is a financial buffer for any unexpected costs arising or reassurance of the ability to pay for something if you are saving up for a longer-term goal. Putting a small amount away each month in a regular savings account is often a good first step on the path to building your savings pot."

Of course, saving is easier for some, with 61% of people feeling that they don't have enough money left at the end of the month to be able to save. However, these people should remember that simply putting a single pound into an easy access savings account every month would see them earn some interest, and the habit could help them over time put away more than they might think.

For those among us who are already diligently saving, it's still important to make sure you are getting a good interest rate, so you can make the most of your money. That's where our impartial savings charts can make all the difference.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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