• Posted February 9, 2025

Being Optimistic May Help You Save More Money, Study Finds

Turns out, looking on the bright side may do more than lift your mood! 

It could also help you save money, especially if you're on a tight budget.

A study published recently in the Journal of Personality and Social Psychology  found that people who are more optimistic about the future tend to save more money over time, even after accounting for income, personality traits and financial literacy.

"We often think of optimism as rose-colored glasses that might lead people to save less for the future," lead author Joe Gladstone of the University of Colorado Boulder, said in a news release. "But our research suggests optimism may actually be an important psychological resource that helps people save, especially when facing economic hardship."

The study analyzed data from more than 140,000 people across the U.S., the U.K. and 14 European countries.

Researchers examined survey responses measuring "dispositional optimism" where participants rated statements like “Overall, I expect more good things to happen to me than bad,” or “In uncertain times, I usually expect the best.”

What did they find? 

Higher optimism was linked to greater savings, even among folks with lower incomes.

And even a slight improvement in optimism scores was linked to $1,352 in savings.

The link between optimism and savings remained even when researchers controlled for other factors like age, gender, relationship status, parental status, childhood socioeconomic status, health, employment status and the “Big Five” personality traits (conscientiousness, extraversion, agreeableness, neuroticism and openness to experience).

The study found that the effect of optimism was strongest among people with lower incomes.

"For someone living paycheck to paycheck, saving can feel futile," said Gladstone, who is co-director of the university's Center for Research on Consumer Financial Decision Making. "But an optimistic outlook may provide the motivation to set aside money despite present challenges."

High-income earners often save automatically through mortgage payments, employer-sponsored retirement plans or simply because they have some extra disposable income.

The findings also suggest that financial education programs might be more effective if they incorporate optimism-building techniques.

"Ultimately, a mindset of hope for the future, paired with the skills to manage money wisely, may be key to helping more people build financial security," Gladstone concluded in a news release from the American Psychological Association, the journal's publisher.

More information

Beebe Healthcare has more on the benefits of saving money.

SOURCE: American Psychological Association, news release, Jan. 30, 2025