The latest set of findings from the Northwestern Mutual 2022 Planning & Progress Study regarding financial discipline finds that people who work with a financial advisor and those who self-identify as disciplined financial planners not only report lower levels of financial anxiety in their lives but higher levels of happiness and better sleep, too.

After many years of helping people retire, Deschutes Investment Advisor Laura Fallon-Burns, CFP® knows that every client’s retirement is unique. She states that, "each person has their own values about money, goals and their financial situation. They also have a different 'sleep at night' number in savings or conservative investments. Knowing that the 'sleep at night' money is there for income or other needs, helps clients view investments in the long term. That’s important because most people will be retired for as long as they worked in their career, and while some people see retirement as the finish line, I see retirement as the starting point for what can be the best time in someone’s life."

The research, conducted with Harris Poll and based on a sample of nearly 2,500 people, finds the majority (54%) of U.S. adults aged 18 and over report feeling somewhat or very anxious about their finances. That number drops to 46% for people who work with a financial advisor and 47% for those who self-identify as disciplined planners. It goes in the other direction for younger adults, with two-thirds (66%) of both Millennials and Gen Z saying they feel somewhat or very anxious about their finances.

	Somewhat / very anxious about finances
All US adults 18+	54 %
Gen Z	66 %
Millennials	66 %
People who work with a financial advisor	46 %
People who do not work with an advisor	58 %
Disciplined planners	47 %
Informal planners / non-planners	64 %

The study uncovered an interesting relationship between financial discipline and overall wellness, with people who have a financial advisor or identify as disciplined planners reporting being happier and sleeping better.

	Somewhat / very happy	Somewhat / very unhappy
Disciplined planners	84 %	16 %
Informal / non-planners	68 %	32 %
People who work with a financial advisor	87 %	13 %
People who do not work with a financial advisor	72 %	28 %

	Sleep well / very well	Sleep poorly / very poorly
Disciplined planners	76 %	24 %
Informal / non-planners	62 %	38 %
People who work with a financial advisor	81 %	19 %
People who do not work with a financial advisor	65 %	35 %

A generational breakdown across wellness categories reveals that Gen X are the worst sleepers, and Millennials and Gen Z are tied for the most anxious.

	Somewhat / very happy	Sleep well / very well	Not very / not at all / anxious about finances
Boomers+	84 %	76 %	64 %
Gen X	72 %	62 %	42 %
Millennials	75 %	72 %	34 %
Gen Z	72 %	71 %	34 %

The study also found a strong generational difference exists when it comes to how people view the impact of their daily financial decisions. The youngest group of U.S. adults believe that small daily purchases – even a cup of coffee – will have an impact on their long-term financial security.

	All U.S. adults	Gen Z	Millennials	Gen X	Boomers +
Small purchases like a daily cup of coffee will impact my long-term financial security	44 %	53 %	52 %	46 %	32 %
Small purchases like a daily cup of coffee will not impact my long-term financial security	56 %	47 %	48 %	54 %	68 %

If you or someone you know is in need of Financial Advice our advisors at Deschutes have over 25 years of combined experience and are available for consultations. Please contact DWM@DeschutesInvestment.com to get started on planning a more secure future today.

Source: The Wealth Advisor. Northwestern Mutual Study, July 07, 2022, https://www.thewealthadvisor.com/article/study-links-financial-discipline-greater-happiness-and-better-sleep