Can investing make people happier?

Investing can be a scary concept for many people — it conjures up visions of Wall Street whizz kids with turbo-charged laptops and a lot of jargon. 

But it doesn’t need to be this way.

In fact, research is showing that investing can make people happier.

In Blackrock’s Global Investor Pulse, they report that when people take steps to invest, they create a greater sense of wellbeing. In fact, 43% feel more positive about their financial future after investing.

While investing gives you the potential to earn returns that can make life more enjoyable, it can also provide a sense of pride and accomplishment, as well as potentially opening-up a world of financial opportunities. 

So let’s explore this idea in more detail including the various ways to approach investing and its potential to create long-term happiness.

The benefits of Investing

• Firstly, investing can give you more control and autonomy over your life. Whether it’s retirement planning, or other long-term investments, being able to create your own financial goals and align your investments to a personalised, long-term strategy inevitably creates a feeling of purpose. Being able to watch that money grow and achieve those goals can bring an immense sense of pride and happiness. 

• Learning the skills needed to manage investments can also bring lasting rewards and increase confidence and satisfaction in the future. Being able to learn about the markets and understand how to make positive investments can create a sense of empowerment and joy. 

• Investing can offer you a way of making a positive social impact. By supporting businesses you believe in and choosing investments to align with your values, you can give back and help the world. This can provide you with a strong feeling of satisfaction.

• Finally, investing provides the potential to earn returns that can make life more enjoyable. This can be in the form of dividends and capital gains, or the freeing of your own time. Investing can offer some financial security and the freedom to travel or just relax knowing that you have the financial resources and stability to do so. 

The challenges 

Investing can indeed make people happier in the long-term, but only if done properly. 

The reality is that there are a number of challenges associated with investing that can cause stress and frustration. From picking the right funds, to trying to make sense of the market’s fluctuations, investing can be a rollercoaster ride and it often requires dedication, research and a certain amount of trial and error.

Another challenge is understanding the risks associated with each investment, which can take time and a certain level of financial know-how. The prospect of making a mistake can be a huge source of anxiety and worry and put many people off from taking the plunge.

To improve your investing experience and really reap the rewards of it, it’s a good idea to be mindful of these feelings and stay patient and focused.

The support of a financial adviser

Making investment decisions that align with your emotions and make you happier can be difficult on your own. But that’s where the role of financial adviser comes in. 

Having a financial adviser to guide you throughout your investment journey will help ensure your decisions are backed by research and understanding. 

We can help manage risk and deal with any potential financial pitfalls along the way. When markets are volatile, we can offer reassurance and a sense of security. 

When it comes to making decisions, we can explain all the options in clear and simple terms, and give you time to think about them, helping you to feel confident about the choices you make.

Perhaps it’s no wonder that the Blackrock research also found that 76% of investors who use a financial adviser report having a positive sense of wellbeing. If done properly, investing gives you a lifelong feeling of safety, security and satisfaction.