Study finds this personality trait leads to improved savings

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A glass-half-full outlook is money in the bank, according to a new study.

The research was published in the Journal of Personality and Social Psychology and conducted by scientists from the University of Colorado Boulder and the University of New Hampshire. It concluded that positive people on average saved 16.9% more than their more pessimistic counterparts, the American Psychological Association reported, per the New York Post.

These findings dispelled popular misconceptions that happy-go-lucky types save less because they assume everything will work out financially.

“We often think of optimism as rose-coloured glasses that might lead people to save less for the future,” said the study’s lead author, Joe Gladstone, a PhD from the University of Colorado Boulder, in a statement.

“But our research suggests optimism may actually be an important psychological resource that helps people save, especially when facing economic hardship.”

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Researchers analyzed data for 140,000 participants which was taken from eight large population surveys across the U.S, the U.K. and 14 European countries.

They rated their level of optimism based on how they responded to statements such as “I am always optimistic about my future” and “Overall, I expect more good things to happen to me than bad.”

Respondents were asked to report their income, savings and total assets.

Researchers discovered that, on average, those with optimistic outlooks saved more than their pessimist counterparts.

For example, if someone saved $62,410, their optimistic attitude correlated to an additional $10,547 saved, compared to their negative counterparts.

Researchers said this rule held true across different countries, ages, genders, employment statuses and other factors, which suggested a strong correlation between a positive outlook and staying afloat financially.

Researchers additionally found that the financial effect of “optimism was similar to what previous research has found for conscientiousness, a personality trait that’s widely recognized for its positive influence on financial outcomes,” Gladstone said.

“Optimism also appears to exert a slightly stronger influence on savings behaviour than financial literacy and risk tolerance.”