We often attribute things like diet, exercise, and mindfulness to maintaining good physical and mental health. But did you know that your finances can impact your health and well-being too? Learn why it’s important to consider financial health as part of a holistic well-being approach.
What is financial health?
Financial health generally relates to your ability to cover current, future, and unexpected expenses. Are you covering your day-to-day expenses comfortably? Do you have your superannuation in order for the future? And have you protected your income with insurance? These things — as well as your savings, expenses, and any investments and debt — will all contribute to the state of your financial health.
How does financial health impact your well-being?
The state of your finances can directly link to your levels of stress. If you’re struggling, under pressure, or concerned about your finances, you may see flow-on effects on your physical and mental well-being. Stress may lead to other conditions like anxiety, insomnia, migraines and even digestive issues if prolonged or unmanaged. Money problems may also lead to unhealthy coping mechanisms like poor eating habits. Unfortunately, if physical or mental health issues present due to financial stress, treatment can often be unaffordable, and unhealthy cycles can develop. Therefore, taking a preventative approach and including your financial health in your self-care habits is important.
Ways to improve your financial health
There are a few ways to stay on the front foot with your financial health. The first step is to gain awareness of where you’re at financially. This might involve mapping out your savings and debts while considering how much you spend and on what. This leads to budgeting, which can help ensure you’re not spending beyond your means and can help you set and achieve savings goals.
You could also consider adding an emergency buffer to your savings plan. Having a few months’ worth of salary put aside can help you cover any unexpected costs that may arise. Insurance plays an important role here too. If you become too sick or injured to work, or if you were to unexpectedly pass away, insurance can provide a financial safety net for you and your family.
There are many other ways to keep financially healthy, like managing your debts efficiently and investing wisely to make your money work harder for you.
Feel free to reach out to me if you are ready to take control of your financial health here.
Any advice is general in nature only and has been prepared without considering your needs, objectives or financial situation. Before acting on it you should consider its appropriateness for you, having regard to those factors. Before making any decision about whether to acquire a financial product, you should obtain the Product Disclosure Statement.