Today we look at a topic that really resonates with our culture at Endorphin – Optimism. We love to see the glass as half full, every cloud having a silver lining and of course living above the line.
Have you ever joined the dots between positive thinking and your financial habits?
Optimism doesn’t translate as ignoring the real world. Rather, optimism is defined as the expectation of good things yet to happen coupled with the belief that behavior matters, especially during times of challenging turbulence. A rational optimist can see reality for what it is, while still believing good financial habits can improve their financial position.
These days we define our health and wellness quite broadly. We’ve come to embrace mental health, social engagement and financial well-being in our definitions of good health.
Optimism Delivers Superior Financial Benefits
A recent study Mind Over Money in the U.S. by Frost Bank, in conjunction with FleishmanHillard connected the link between financial well-being and an optimistic mindset.
If you doubted the financial benefits of positive thinking, the study found people who classify themselves as optimists enjoy 62 percent fewer days of financial stress per year compared to pessimists.
Optimism was also associated with an increase in a respondent’s financial well-being. Greater optimism, after controlling for skills, income, wealth and other demographic factors, related to superior financial habits.
A Catalyst For Improved Financial Health
Believing our challenges in life are temporary rather than permanent enables us to be inspired to adopt meaningful financial habits that contribute to financial improvement.
Optimism can act as a catalyst for improved physical, emotional and financial health. The study found respondents wanted more optimism in their lives.
One potential remedy to the stress endemic to our busy lifestyles is nurturing an optimistic perspective. When it comes to financial strategy, the study shows optimists are better placed to adopt a savvy approach and enjoy the financial benefits of their investment strategy.
Optimism Enhances Financial Agility
The research indicates optimists were substantially likely to enjoy superior financial wellbeing compared to pessimists. Moreover, optimists were more likely to adopt better financial habits in managing their money. Roughly 90 percent of optimists in the study saved for a significant purchase, be it a car, a house or an overseas trip compared to pessimists at just 70 percent.
Some 66 percent of optimists had an emergency fund, compared to fewer than half the pessimists. Moreover, optimists appear to be more active in seeking out and following counsel from a trusted source.
Optimism Fuels Your Career
Optimism also appears to be a sage investment beyond personal finance. Optimists seem to do better in their careers than pessimists.
These Work Optimists are 40 percent more likely to receive a promotion in the coming twelve months, five times less likely to experience burnout than pessimists and up to six times more predisposed to displaying high levels of engagement in their workplace.
Optimism is a lucrative investment for professionals. Positive thinking together with sound financial habits can unleash your inner optimism and help you take back those 145 stress-free days each year lost to pessimism while fuelling your sense of happiness and work success.
The team at Endorphin Wealth Management is happy to assist with helping you achieve a positive outlook on your financial situation from a financial planning perspective.
For an obligation free discussion, call us on 03 9190 8964, or schedule a meeting at endorphinwealth.com.au/contact/