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In 1860, Ralph Waldo Emerson, an American philosopher, wrote, “The first wealth is health.” This quote, often cited by economists and health experts, not only emphasises good health as the foundation for building a life, a community, and an economy but also hints at the deep link between financial well-being and every aspect of life, including overall well-being.
Our latest article explores the relationship between financial health and your well-being, from mental and physical health to overall happiness. You’ll discover the cyclical nature of this relationship that can trap anyone in a downward spiral and the societal implications of widespread financial distress. We then offer practical strategies to improve your financial wellness. This piece is for you if you want to enhance your well-being through better financial management.
But first, what’s financial health?
When discussing financial health, we think about savings, retirement, life insurance, and the ability to afford what we need and have the life we want.
In lay terms, financial health is the stability of one’s finances and economic affairs, including one’s ability to meet one’s money needs today and in the future.
So, a financially healthy individual is secure about their financial future and is not overly stressed about money. They enjoy life comfortably and can maintain this life in the future.
In This Guide
Impact on Mental Health
Assume you have a loan; it could be credit card debt or from a bank that’s due, but you can’t pay it. Or you cannot settle your rent; generally, everything isn’t adding up. Suppose your expenses are not adding up. How do you feel? Anxious, uh? You are unable to think straight. You are either sad or angry. Depression kicks in. That’s more like it.
When you reach a point where you need to cut back on essentials such as food or heating, it can have severe impacts on your mental health. Such a situation can make it even more challenging to recover from mental health disorders.
Impact on Physical Health
Any form of stress affects how your body works. So, financial problems don’t only affect your thoughts, feelings, and behaviour; they also affect your breathing and how your body generally works.
We all know that we first feel a headache when stressed. The pain results from the tense muscles in the back of the neck and scalp. The strain we put on it can cause “vice-like” compression, which we then describe as stress-related headaches.
But what causes these health problems? Well, unhealthy ways of coping. Simple things like clenching our jaws and grinding our teeth when stressed trigger migraines all on their own. Other extreme coping habits like overeating cause obesity, while drinking and smoking have far-reaching side effects. But these only make things worse. They lead to more health problems and, ultimately, more financial stress.
Financial stress can cause high blood pressure, which may trigger heart disease and even heart attack and stroke.
Other consequences of stress include diabetes, a weakened immune system, indigestion, muscle tension, heart arrhythmia, and sleep problems.
Health experts and psychologists agree that poor financial health will likely cause you some health conditions, such as apparent headaches. Often, these new health issues further strain your finances as you have to incur a medical bill. These problems will add to the stress, given that you’re already in a tight fix.
Impact on Social Well-Being
There’s a strong correlation between financial wellness and mental health, hence behaviour. The stigmas surrounding debt and poor financial wellness may prevent people from seeking help, sending them further down the drain.
Experts have found that people in severe financial trouble are three times more likely to think about suicide.
Without proper mental health care, it can be not easy to seek help. Many people agree that finances are even more stressful than family, work, and politics and are the top source of stress for most people.
Financial Health Tips
We began this piece by quoting that health is wealth. However, stress can affect your health in many ways, further exacerbating your financial well-being. To manage and improve your financial situation, you need to take small steps to enhance your life now and even better in the future.
Reviewing your spending and saving habits is one way to improve your financial wellness. Look for patterns in your expenses and decide what you can continue and what you can cut out.
Additionally, seeking help from various resources is not a sign of weakness but a smart move that can significantly support your journey to financial well-being. Consider learning more about managing your finances from books, classes, or a trusted mentor.
Learn to have a budget. Write down your expenses and make a budget based on what you need. Then, track your spending based on the spending plan.
Remember, the company you keep largely influence your choices. But ultimately, the power to decide is yours. Finding a balance between socialising and intelligent money decisions can positively impact your social and financial well-being.
It’s important to talk about money openly in a relationship. Having different ideas about money can create stress. Sharing details about your finances, debts, and spending habits can help build understanding and trust.
Conclusion
Researchers and psychologists worldwide agree that excessive worry about money can seriously impact one’s health. Apart from physical health issues, people with excessive worry about money may also have mental and social problems, affecting their overall quality of life. Constant concern about money can disrupt sleep, lower self-esteem, and drain energy. So, financial well-being directly affects overall health. Dealing with stress is normal, but it’s critical to understand that money-related issues can be ongoing.