The relationship between a balanced time perspective and life satisfaction has been demonstrated in previous studies, yet the potential mechanisms underlying this relationship remain unclear. The current study tested whether a latent factor “temporal negative affect” underlay anxiety and depression and whether this latent factor mediated the relationship between balanced time perspective and life satisfaction. To assess life satisfaction, time perspectives, anxiety and depression, a total of 995 university students aged from 17 to 25 years were recruited. Structural equation modelling analysis demonstrated that the latent factor “temporal negative affect” consisted of anxiety and depression and played a mediating role in the relationship between balanced time perspective and life satisfaction. These findings can deepen our understanding of how time perspectives potentially influence life satisfaction, offering new directions towards enhancing well-being in health and disease.