It’s not just the size of our income that counts. Financial clarity may be just as important for wellbeing as income, and could even help us look forward to a holiday more, according to new research we undertook for Klarna, the everyday finance network, in collaboration with mental wellbeing app Headspace. .
Published as The Clarity Effect, we ran randomised experiments that kept money the same and changed only how clearly people could see it. We found a predictable income was more closely linked to life satisfaction than how much someone earned. Similarly, being able to cover an unexpected bill was about twice as strongly linked to life satisfaction as income. You can read the full report here.