Do you want to increase your retirement savings by approximately 50%? New research finds this trait to be key

How motivated are you to achieve your financial goals? Are you willing to make small sacrifices, like giving up Uber meals, to help fund your long-term goal of saving for retirement?

New research from Goldman Sachs suggests that having a high amount of “financial grit” — or perseverance and optimism when setting out to achieve long-term financial goals — on average increases retirement savings by 49% when controlling for income.

What exactly is financial grit?

The researchers measured financial grit by asking participants how they dealt with financial hardship. Those who had a growth mindset when dealing with setbacks and a greater ability to resist short-term temptations so they could focus on long-term savings goals had greater financial resolve.

Moreover, all hope is not lost for those who think they don’t have it. Researchers note that it is also possible to develop financial grit.

“There’s something in the behavioral finance world called ‘the power of positivity,’ which really shows that people who embrace the idea that what’s in front of them is achievable — whether that’s retirement savings or other aspects — the reality of them achieving it is much higher,” Chris Seider, a senior retirement strategist at Goldman Sachs Asset Management, said in a recent webinar. “It’s not a steady state.”

How can you develop financial resolve?

Building financial resolve can involve changing the way you think about money. This may mean believing that you will save enough money for retirement. It can also mean not giving up on your other goals when you tend to splurge.

To minimize the impact of setbacks like an unexpected medical bill or home repair on your finances, try to stick to some time-tested personal finance rules like having an emergency fund.

While experts generally recommend saving three to six months of expenses in an emergency fund, saving a smaller amount can help. In fact, just $2,000 in an emergency fund can improve financial well-being and reduce financial stress, according to fund provider and brokerage Vanguard.

“Emergency provision… [are] Especially important because many families face some type of financial emergency about once a year. “Having this buffer allows them to prepare for the unexpected and avoid the anxiety and financial stress that can come from not having this buffer,” said Malina de la Fuente, a behavioral scientist and economist at Vanguard.