The connections between your physical as well as mental health and your financial health may surprise you. According to WebMD, low financial wellness can make you're four times as likely to experience some sort of health condition. Let's take a quick look at the correlation between financial and overall health and what can be done to improve your financial wellness.
The Link with Mental and Physical Health
Low financial wellness can lead to anxiety, depression, and a sense of being overwhelmed. Those feelings, if they go on for months or even years can lead to behaviors that negatively affect your physical health. The effects on your physical health can garner a heavy toll. Those physical manifestations can include headaches, heart conditions, problems sleeping and a weakened immune system.
Here are five ways to improve your financial health:
Organize your finances. That includes calculating your total net worth (how much you have in all of your accounts minus your liabilities (loans). Be sure to include the value of your home minus what is owed on the mortgage. These calculations will give you a good view of your financial picture. Having an understanding of your overall financial wellness opens the door to coming up with a plan to improve it.
Set a budget that works for you. If you need to cut items consider trimming subscriptions that you haven't used/forgotten about or shopping around for lower-cost wireless services. You could also ask about insurance bundling discounts.
Pay off debts. Make the minimum payment each month to all but the debt with the lowest balance. For that loan, pay as much as you can each month until it is paid off. Then move to the next lowest loan balance, paying as much as you can until you are debt-free.
Create an emergency savings account. Put as much as you can into that savings account every month until you have six months/ worth of your total income in the account. It's okay to start small. Every little bit adds up over time. Think of it as a marathon, not a race. Once you have an emergency savings, make a habit of tapping into this account instead of using a credit card to pay for emergency expenses.
Plan ahead for retirement and college. Set aside money for your non-working years as well as college funding for those you love including children and grand children. Slow and steady contributions over time add up.
Boost Your Financial Wellness
More Financial Wellness Matters blogs on topics ranging from financial self-care to protecting your financial health are coming soon. Twice a month, we’ll dig a bit deeper into the relationship between financial health and overall well-being, shedding light on the behaviors and beliefs that drive money relationships. With simple tips and proven insights, we hope to enhance your financial well-being and help you live a healthier, happier life.