Being able to get cash in a pinch is a strong predictor of life satisfaction, according to a study by Martin Berlin and Niklas Kaunitz at the Swedish Institute for Social Research at Stockholm University. Analyzing data from the Swedish Level of Living Survey, they found that Swedes who said they could not come up with a moderate sum of money (a little over $1,000) within a week — either from savings, family, friends, or a bank — reported lower measures of life satisfaction than those who said they could. Countering the decrease in “satisfaction with life circumstances” that’s associated with being unable to get cash would take more than a fivefold increase in income; it would take a twentyfold increase in income to make up for the dip in “satisfaction with daily life,” the other measure of life satisfaction. Not being able to attain money even had a greater association with life satisfaction than cohabitation or marriage. This suggests that a sense of economic security, not wealth per se, is what matters for someone’s well-being, the authors say.
Source: Beyond Income: The Importance for Life Satisfaction of Having Access to a Cash Margin
