Money worries affect 86% of people, 36% of which think about their money troubles on a daily basis. Many of us would like to think that if we earned that little bit more life would be so much easier and we would be so much happier, but would we? Can money really make you happy?
Aviva in conjunction with a City University Psychologist has conducted the ‘Feel Good Insight Study’. According to the study, happiness and self esteem do not come from the amount we earn but rather from the amount of financial control we have over our money. The report suggested that 22% of individuals earning over £50k have low levels of self esteem.
The Results
The UK as a nation has relatively good self esteem levels with two thirds of the population considered to have good or high levels of esteem. According to Aviva’s study 85% of those with good/high levels of self esteem felt in control of their finances and were happy.
The study also showed that 68% of these individuals were more organised when planning their day-to-day finances and had long term financial goals compared to individuals with low self esteem. 70% of individuals who had low levels of self esteem did not feel in control of their finances and as a result of this were unhappy about their financial situation.
Results showed that 76% of those with low levels of self esteem failed to make any long term financial goals and 69% worried about their financial situation on a daily basis. Budgeting was also seen as problematic for those with low levels of self esteem, with 42% failing to stick to one. These results seem to highlight a link between financial security and levels of self esteem.
Aviva’s Marketing Director Gary Price stated that the Feel Good Insight Study has shown a strong correlation between financial behaviour, self esteem and happiness. Financial stress can have a major impact upon the health and happiness of an individual, it is therefore important to acknowledge the fears and anxieties individuals hold regarding their finances.
Report Summary
In any aspect of life not knowing or understanding what is happening can be a daunting experience. Results have shown that individuals who understand and feel in control of their finances are overall more happy than those who are lacking control of their financial situation.
The study found that many individuals do not understand the financial products available to them, only 12% of women understood complex financial products while 16% of those with low levels of self esteem admitted to not having any understanding about the likes of pensions and investments.
Next steps
Protecting yourself financially is important, knowing that your finances are safe and you are financially secure can play a big part in reducing levels of anxiety and stress, removing that burden from your shoulders can help you focus on enjoying your life.
If you are considering ways in which to protect your income, your health or your family please do not hesitate to get in touch, as personal insurance advisers we are here to help you protect your future. We are totally impartial so our complete focus is on what is best for you.
