Many people have tried to answer the age-old question of whether money makes us happier. Although we do not have an answer to this question yet, research has found that being in financial control is linked to happiness, in the form of self-esteem.
The Feel-Good Insight Study, which was produced by Aviva in conjunction with London’s City University psychologist Dr Malcolm Cross, found that overall happiness, wellbeing and self-esteem was linked to our sense of financial control rather that how much money we have. Those with strong financial plans were found to be happier overall and have greater financial wellbeing.
The survey shows that money does not necessarily lead to increased confidence, with a larger proportion those surveyed with a salary of at least £50,000 actually having below average self-esteem rather than high self-esteem.
It was found that 85% of those surveyed who reported high self-esteem also declare to be in control of their personal finances. On the contrary to this, 70% of those survey who reported low self-esteem also reported that they were not in control of their personal finances.
The survey result also shed some light on the potential cause of this difference. Of those with high self-esteem, 62% set themselves clear financial goals for the long-term, whereas 76% of those who reported low self-esteem fail to plan for the long-term.
This research suggests that it is worth spending the time to review your financial position, including your income and expenditure, and build a strong financial plan for the future. This may include consideration for income protection, life insurance, mortgage life insurance, mortgage protection, savings and pensions.