A new study published by Ruberton, Gladstone and Lyubomirsky for the American Psychological Association found that people who have access to liquidityDescribes the extent to which assets or rights can be converted into cash without causing a significant decrease in the asset’s price. Accordingly, liquidity is often inversely proportional to the profitability of the asset and involves the trade-off between the selling price and the time needed to convert it to cash. In finance, cash is considered the most liquid asset and cash is sometimes used as a synonym for liquidity (e.g. cash reserves; cash pooling…). More in their checking and savings accounts experience higher life satisfaction.
The study, which focused on 585 U.K. bank customers, found that those with higher liquid wealth had a more positive perception about their financial well-being than those that had less wealth or wealth that was invested elsewhere. The findings show that it’s not necessarily how much you earn or how much you invest that make you happy, but rather how much cashMoney in physical form such as banknotes and coins. More you have in your account.
The conclusion is that life satisfaction is not only tied to earnings, but to immediate access to moneyFrom the Latin word moneta, nickname that was given by Romans to the goddess Juno because there was a minting workshop next to her temple. Money is any item that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular region, country or socio-economic context. Its onset dates back to the origins of humanity and its physical representation has taken on very varied forms until the appearance of metal coins. The banknote, a typical representati... More – something that policymakers should take into account.
To read the publication’s abstract [paywall], please click here.