The key to financial happiness? £1.66 a day

The Momentum UK Team 22 October 2012

Research suggests that saving £1.66 a day could make you happier. WIth 9 million Britons claiming they would feel better about their finances if they were able to save £50 per month.

According to new findings from NS&I, saving has a positive impact on people's mood. Revealing that 26 million Britons (53%) say saving improves their state of mind.

What’s more is that those who are dissatisfied with their savings are more inclined to spend on spur of the moment items than those who were saving. 42% admitted to spending on unbudgeted indulgences. Regret at frivolous spending then furthers dissatisfaction with lack of savings and increases the risk of over sending.

Those that do save cited a number of techniques to retain that £1.66 a day. One of the most effective techniques was good forward planning. Bulk buying reduced items or the use of discount codes are all simple yet effective means of saving a few pounds.

Other techniques included collecting loose change, and placing a proportion of their earnings in a savings account each month. 20% go that bit further and get their hands dirty, choosing to grow their own vegetables to save on grocery bills.

John Prout, NS&I Retail Customer Director said:

"The secret to savings success is often as simple as setting a realistic goal and sticking to it and the good news is that over half (55%) of Britons feel they have achievable targets already in place. However, our findings show that a third (34%) of the population are frustrated that they aren't saving regularly.”

With positive effects to your bank account and your state of mind, the benefits of responsible spending become two-fold. Prout said:

“We're encouraging people to make a small daily change with their money management as it may help to improve their state-of-mind as well as their bank balance. Approaches like this don't take too long to implement, but may stop money worries in the future."