The Surprising Link Between Gratitude And Your Financial Health

The holiday season always reminds me to slow down and practice gratitude more intentionally. Over the years, I’ve noticed something surprising: Gratitude doesn’t just improve your mood; it can also strengthen your financial health. When you’re grounded in what you value most and what you already have, you’re far more likely to spend intentionally, save consistently and prioritize what truly matters.

Here are three ways gratitude can directly strengthen your financial life:

1) Gratitude strengthens delayed gratification.

According to a study published in the journal Psychology Science, feelings of gratitude can combat the urge for instant gratification. Those who demonstrated gratitude were most likely to wait to receive $80 in 30 days rather than $54 dollars today. The study also shows that cultivating gratitude can reduce impulse buying because you feel more fulfilled and less reliant on the quick “hit” of spending money impulsively.

Why this matters for your finances: If you can delay gratification, you’re more likely to save and avoid high-interest debt.

Action steps:

1. Start with why: Reconnect with what you value and how your planned spending may or may not align with that.
2. List expenses: Once you decide on the planned spending you’ll keep, make a list and determine how much you need for each.
3. Review your expenses: Use pen and paper, a spreadsheet or a budgeting app such as Simplifi or Tiller to list your expenses.
4. Reduce, swap and eliminate: Unlock savings by reducing, swapping or eliminating expenses. Target one item at a time and start with low-hanging fruit, such as negotiating or comparison shopping for wireless, internet or insurance services for quick wins.
5. Set aside these savings for planned spending: Consider setting up a separate account to fund those expenses as a sinking fund. If you expect savings to fall short, adjust your planned spending and look for additional ways to save or increase income.

Taking these steps can help you determine whether those planned purchases fit your budget and help you avoid high-interest debt that can erode financial stability.

2) Gratitude promotes generosity.

According to research cited by the University of California, Berkeley, gratitude can put you in a giving mood. Generosity can broaden your perspective and reduce comparison-driven spending, otherwise known as “keeping up with the Joneses.”

Why this matters for your finances: If you’re in a giving mood, you look for ways to set aside money for the things you’re most passionate about and support. This can interrupt the tendency to spend based on what everyone else is doing, leading to more savings and less debt.

3) Gratitude cultivates contentment.

Taking time to think about what you’re grateful for can lead to a feeling of contentment and help you avoid problems associated with “hedonic adaptation,” the phenomenon in which people quickly adjust to a new normal with money, possessions and experiences. The buzz fades, and then you need something bigger and better to get that high feeling again.

Why this matters for your finances: Learning contentment through gratitude can help you decouple happiness from buying more stuff, a behavior that can put your financial future at risk. By practicing gratitude instead, you might find you don’t need to spend a lot of money to feel happy. This can lead to a stronger focus on long-term goals that help you feel more fulfilled and avoid impulse purchases that can break your budget.

How to Achieve the Gratitude Mindset

Of course, before gratitude can help your finances, I’d be remiss not to mention a couple of tips on how to achieve it.

1) Daily gratitude practice.

One of the best ways to cultivate gratitude is to take time each day to write down the things you are grateful for. It might seem unnecessary to write them down, but the reality is that writing your list creates a connection to it. Try taking just 3 to 5 minutes each day to list out the things you are grateful for. Or alternatively take a “count your blessings” approach and list out 3 or more each day. The results will be nothing less than transformative.

2) Say thank you to others.

As noted by Harvard Medical School, make it a point to thank others when you can. If you forget, try to make it a habit of thinking about someone who did something kind to you and mentally thank them. As you learn to acknowledge what others do for you, you will be more inclined to look for the good in others and develop a greater capacity for gratitude and positive thinking.

3) Practice a gratitude meditation.

Whenever you feel stressed, try turning the moment into an opportunity for a mini gratitude meditation. Instead of simply focusing on the present, try closing your eyes and taking a deep breath. Quickly identify three things you appreciate in that exact moment—perhaps the comfort of your home, the sound of laughter or birds chirping, or the softness of your clothing. This quick shift not only grounds you but also highlights hidden positives you might not have noticed.

In the end, good financial health is built on a mindset, and gratitude can be one of the most powerful tools you can practice. This season, try adding just one small gratitude ritual to your day or week. You might be surprised at not only how much your finances improve but how it can reshape your sense of overall wellbeing.