As most of us know, mental health has a large impact on physical health. A major contributor to ones mental health is financial wellness.
As most of us know, mental health has a large impact on physical health. A major contributor to ones mental health is financial wellness. A recent study conducted by the American Psychology Association found that about 72 percent of Americans reported feeling some amount of financial stress within the previous month. Time and time again, money reaches the top of the list as a major stressor for most Americans. Numerous studies have even found a cyclical link between financial health and mental health; The better your mental health, the better your finances and vise versa. Financial stress is taking a major psychological and physical toll on our population. Side effects of financial stress include; insomnia, weight changes, depression, anxiety, unhealthy coping mechanisms, social withdrawal, relationship issues, shorter lifespan and other physical ailments like headaches, gastrointestinal problems, diabetes, high blood pressure, and heart disease. So what can you do to better your financial and physical wellness?
Here are some steps you can take in order to improve your financial health and thus your overall well-being.
Track your spending- By monitoring your expenses you are able to see where all of your money is going and know why you have less money in your bank account today than you did yesterday. Acknowledging your spending habits gives you a better idea of what you should spend less on and where you can give yourself more wiggle room. The best way to start budgeting is by looking at your daily expenses and seeing where you should tighten the reigns.
Start a savings account (and start saving)- A savings account is a great way to lower financial stress. Since 70 percent of Americans have less than $1,000 in savings, any kind of financial emergency could put them out on the streets. That kind of looming stressor is not good for anyones overall well-being. The best way to start saving is by doing just that, start saving. Create a savings account and set up automatic transactions to move a percentage of money from checking to savings weekly or monthly. Even if the amount of money being moved into savings is small, it will compound interest overtime and increase. A savings account gives you peace of mind and the knowledge that if some kind of emergency were to happen, you have a cushion to fall back on.
Seek the help of a financial advisor- Money management is not something that is taught at a conventional school. Financial advisors are people who have been specifically educated in the field of helping people manage their money. A financial advisor can help you with anything from debt management to planning retirement. For someone trying to budget and plan out their future, a financial advisor is a great asset. Financial planners help by offering great insights and a personalized money management plan.
While managing your finances often increases levels of stress and anxiety, there are ways to ease the looming tension of financial strain. By improving your financial health, you will improve your mental and physical health and increase your lifespan. Banking better will allow you to live longer and enhance your quality of life. All you have to do is get started.
Speaking of psychology: The stress of money. (n.d.). Retrieved April 13, 2021, from https://www.apa.org/research/action/speaking-of-psychology/financial-stres
Vultaggio, M., & Richter, F. (2019, December 18). Infographic: Most Americans lack savings. Retrieved April 13, 2021, from https://www.statista.com/chart/20323/americans-lack-savings/