Latest news with #RajabrataBanerjee
Time of India
02-08-2025
- Health
- Time of India
Start budgeting to be happier: New study reveals surprising link between smart money management and mental health
A Lifeline Amid Rising Living Costs You Might Also Like: Trusting ChatGPT with your mental health? Experts warn it might be fueling delusions Why Men Benefit More And Why That's Concerning Building a Foundation for the Future You Might Also Like: Drowning in depression and burnout, millennial employee adopts Gen Z tactic for mental health In an eye-opening new study, finance experts at the University of South Australia have found a surprisingly strong connection between everyday financial habits and mental wellbeing . From regular savings to timely credit card repayments, the research suggests that your wallet and your mind may be more closely linked than you study titled 'Understanding the Effect of Financial Behaviour on Mental Health: Evidence From Australia', based on data from the long-running Household, Income and Labour Dynamics in Australia (HILDA) survey, followed over 17,000 Australians aged 15 and older across two decades. Researchers discovered that individuals who followed stable financial routines — especially those who saved consistently and paid off credit card debt on time — reported not only better mental health, but also higher energy levels, stronger social ties, and greater overall life Rajabrata Banerjee, an expert in applied economics and a member of UniSA's Centre for Markets, Values and Inclusion, explains that while the stress of debt has long been known to negatively affect mental health, less attention has been paid to the positive impact of proactive money habits 'We already know that having high debt and low savings has a negative impact on mental health,' Banerjee said in the university's official release. 'But we wanted to learn more about the behaviors — like how often someone saves or pays off debt — that might reduce financial strain and improve wellbeing.'The findings couldn't be more timely. With Australians grappling with rising utility bills and persistent cost-of-living pressures, the financial strain is more real than ever, especially for younger people. The study found that sharp increases in the cost of electricity, gas and water hit younger individuals hardest, since they typically have lower savings and higher levels of debt. This in turn affects their ability to save or pay off debt, triggering a cycle of financial stress and mental the benefits of healthy money habits weren't exclusive to any particular income group. Whether someone earned a little or a lot, the study showed that consistent saving and debt management offered a mental health boost. Even small savings could make a meaningful difference when done notable finding was the gender gap in financial impact . 'The positive effect of savings on mental health was stronger for men than for women,' said Banerjee. This may reflect deeper societal patterns where men are still more often the primary financial decision-makers in households, a factor that can exacerbate gender disparities in both money management and mental health study makes a compelling case for rethinking personal finance not just as an economic tool, but as a mental health strategy. Financial hardship, Banerjee warns, can lead to a loss of independence, long-term insecurity, and even continuous debt cycles.'When people are financially strained, they often miss out on investing in their future, and that adds to a sense of hopelessness,' he noted. 'But healthy financial behaviors create stability, open doors, and significantly reduce mental stress.'So while therapy, mindfulness, and self-care remain essential to wellbeing, don't underestimate the quiet power of consistent savings and timely bill payments. Sometimes, peace of mind begins with a balance sheet.
Economic Times
02-08-2025
- Business
- Economic Times
Start budgeting to be happier: New study reveals surprising link between smart money management and mental health
iStock A recent University of South Australia study reveals a significant link between financial habits and mental wellbeing. Analyzing data from over 17,000 Australians, researchers found that consistent saving and timely debt repayment correlate with improved mental health, higher energy levels, and greater life satisfaction. (Image: iStock) In an eye-opening new study, finance experts at the University of South Australia have found a surprisingly strong connection between everyday financial habits and mental wellbeing. From regular savings to timely credit card repayments, the research suggests that your wallet and your mind may be more closely linked than you think. The study titled 'Understanding the Effect of Financial Behaviour on Mental Health: Evidence From Australia', based on data from the long-running Household, Income and Labour Dynamics in Australia (HILDA) survey, followed over 17,000 Australians aged 15 and older across two decades. Researchers discovered that individuals who followed stable financial routines — especially those who saved consistently and paid off credit card debt on time — reported not only better mental health, but also higher energy levels, stronger social ties, and greater overall life satisfaction. Professor Rajabrata Banerjee, an expert in applied economics and a member of UniSA's Centre for Markets, Values and Inclusion, explains that while the stress of debt has long been known to negatively affect mental health, less attention has been paid to the positive impact of proactive money habits. 'We already know that having high debt and low savings has a negative impact on mental health,' Banerjee said in the university's official release. 'But we wanted to learn more about the behaviors — like how often someone saves or pays off debt — that might reduce financial strain and improve wellbeing.' The findings couldn't be more timely. With Australians grappling with rising utility bills and persistent cost-of-living pressures, the financial strain is more real than ever, especially for younger people. The study found that sharp increases in the cost of electricity, gas and water hit younger individuals hardest, since they typically have lower savings and higher levels of debt. This in turn affects their ability to save or pay off debt, triggering a cycle of financial stress and mental fatigue. Interestingly, the benefits of healthy money habits weren't exclusive to any particular income group. Whether someone earned a little or a lot, the study showed that consistent saving and debt management offered a mental health boost. Even small savings could make a meaningful difference when done regularly. Another notable finding was the gender gap in financial impact. 'The positive effect of savings on mental health was stronger for men than for women,' said Banerjee. This may reflect deeper societal patterns where men are still more often the primary financial decision-makers in households, a factor that can exacerbate gender disparities in both money management and mental health outcomes. The study makes a compelling case for rethinking personal finance not just as an economic tool, but as a mental health strategy. Financial hardship, Banerjee warns, can lead to a loss of independence, long-term insecurity, and even continuous debt cycles. 'When people are financially strained, they often miss out on investing in their future, and that adds to a sense of hopelessness,' he noted. 'But healthy financial behaviors create stability, open doors, and significantly reduce mental stress.' So while therapy, mindfulness, and self-care remain essential to wellbeing, don't underestimate the quiet power of consistent savings and timely bill payments. Sometimes, peace of mind begins with a balance sheet.
New York Post
25-06-2025
- Business
- New York Post
People with this money habit are happier and calmer — no matter how much they make
They say money can't buy happiness — but how you handle it just might. A surprising new study has found that one financial behavior is consistently linked to lower anxiety and greater life satisfaction. The research — published in the aptly-named journal Stress and Health — controlled for income, meaning you don't need to make bank in order to enjoy the mental health benefits. Advertisement 3 They say money can't buy happiness — but how you handle it just might. Prostock-studio – It seems that good fiscal management — meaning regularly saving money and paying off your credit cards on time — is the true key to bliss. The findings were based on the data of over 20,000 Australians over the course of 20 years and used the Mental Health Inventory-5 — a scientifically validated screening instrument for anxiety and depression — to calculate results. Advertisement A 1% uptick in saving habits was linked to a 0.475% improvement in mental health scores, while a 1% increase in consistent credit card payments led to a 0.507% boost, which is more significant than it sounds. Most importantly, people who made the same amount of money but had different fiscal management styles showed very different levels of happiness and peace of mind. While many studies have shown a correlation between income and life satisfaction, this study is unique in that it indicates good financial habits — rather than a fat paycheck — can significantly improve mental health. These results held steady through major economic upheavals, including the 2008 financial crisis and the COVID-19 pandemic. Advertisement 3 It seems that good fiscal management — meaning regularly saving money and paying off your credit cards on time — is the true key to bliss. Pixel-Shot – The researchers believe being fiscally responsible can help reduce 'financial strain' — that constant background stress of not knowing if you can cover bills, emergencies or unexpected costs. It can also have an unpleasant domino effect. Advertisement 'When individuals are financially strained, they often can't save as much or invest, so they miss out on growth and meeting those goals they might have set for the future,' study co-author Rajabrata Banerjee, a professor of applied economics at the University of South Australia, said in a statement. 'People can also become reliant on borrowing to meet their basic needs, and this can lead to high interest payments and continuous debt cycles.' 3 People who made the same amount of money but had different fiscal management styles showed very different levels of happiness and peace of mind. Nana_studio – The researchers also hope these findings might inspire people to take actionable steps to control their financial — and, subsequently, mental — health. 'That's why healthy financial behavior is important to build stability and long-term security, allowing goal achievement, independence and access to opportunities, as well as reduced stress and good mental health,' he said. Interestingly, the benefits were more pronounced for men when it came to saving habits — though both genders saw improvements across multiple measures of well-being, including emotional resilience and social functioning. The researchers also looked at whether the relationship worked the other way around — that is, if poor mental health led to worse financial decisions — but found almost no evidence of that. So go ahead and set up that auto-pay — because clearing your balance leads to a balanced mind.
