Easily accessible savings, known as precautionary savings, have a profound positive effect on individual well-being. This type of savings provides a psychological buffer, alleviating stress related to financial uncertainty. People with a safety net of liquid savings experience greater peace of mind, which directly contributes to their happiness. The research indicates that it is not just the amount saved but the ability to access it quickly in emergencies that makes the difference in perceived security and life satisfaction.
Precautionary savings boost overall happiness
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