Why good financial habits are key to happiness

Morgan Stanley says most investors are optimistic

Why good financial habits are key to happiness
Steve Randall

Ensuring good financial habits is a key part of achieving happiness according to new research.

A study from Morgan Stanley found that those investors who are happiest overall are the ones who are not concerned about important financial metrics, including having enough money for retirement or for unexpected medical expenses.

Very happy investors are not too concerned or concerned at all that they have the right level of risk (65% said that), can cover an unexpected medical bill (56%), have enough retirement savings (52%), and can maintain their standard of living (54%).

Their happiness with their finances comes from having a plan in place (71%), meeting long-term goals (53%), meeting short-term goals (61%), and discussing their finances with their ‘significant other’ (72%).

Most investors are optimistic but there are concerns
The study of US investors with over U$100,000 in assets reveals that 9 in 10 are somewhat or very happy with their current financial situation and a similar share expects an improvement in their portfolio in the coming year.

However, more than two thirds are concerned about running out of money in their lifetime and 56% worry about maintaining their standard of living.

Younger investors say they are already concerned about retirement (72%) and making enough money for their lifetime (69%).

Of those over 45, around 9 in 10 with they had started saving for their goals earlier, especially in regard to retirement savings.