Buzz
Numerous subtle attitudes shape our financial behaviors. A Stanford study found that a sense of power can lead to improved saving habits.
The study involved five different experiments, examining how feelings of "power trips" influence our savings actions.
...the authors found that feeling powerful, defined as having control over valuable resources, is a satisfying state that people strive to maintain. Since money is the most prized resource, they suggest that those who feel powerful save money to preserve their sense of power.
In one experiment, participants were given $10 and asked to report to a research lab. When they arrived, they were either seated in a tall chair or on a low ottoman. Afterward, they were asked to save part of their $10. Those sitting in the tall chair saved an average of $6.94, while those on the low ottoman saved $4.49.
In another experiment, participants were asked to imagine themselves as either the leader or a member of a small group. Leaders saved between 34% and 42%, while members saved only 13% to 18%.
You can dive deeper into each study for more details. Overall, the findings led the authors to conclude that people tend to save more when they want to preserve their sense of power. Money provides us with a feeling of control, so we keep it to hold onto that power.
Of course, these studies aren't without their flaws, and you might question the methods used. However, control is crucial when managing your finances. When you begin to feel in control of your money, it creates a motivating momentum. This is one reason the debt snowball method works so effectively.
Manifesting a power trip isn't always easy. For those struggling to make ends meet, feeling powerful can seem far-fetched. However, when budgeting or deciding how much to allocate towards a financial goal, it can help to consider the role of control and power. For instance, setting smaller milestones can give you a sense of achievement and power more regularly.
For more information, take a look at the full study.
Image by Scott Swigart.
