How Does Financial Wellness Affect Your Health?

Financial wellness means having the ability to meet your current and future financial needs with ease. When you are financially secure, you can feel confident about your future finances and live comfortably without unnecessary stress or worry over money.

However, it's crucial to have financial literacy to achieve financial wellness. This contains the knowledge and skills necessary to manage your finances effectively. Financial literacy involves investing money for retirement, making and using a household budget, and consulting with professionals regarding significant purchases.

Other factors that can affect your financial wellness include:

  • Your current financial situation needs
  • Regular financial behaviors
  • Short-term and long-term planning
  • Activities that can help manage your finances

You might feel that your financial wellness is stable. You may have a plan and understand how to achieve it. But it’s also realistic that you may be in a challenging financial situation due to various expenses affecting financial wellness over time.

You may also feel anxious about your financial wellness due to:

  • Medical expenses
  • Student debt
  • Credit card debt
  • Future family expenses

Remember that debt and financial troubles can negatively impact your overall health. The more debt you have, the more it can affect your well-being.

How does financial wellness impact your mental health?

The connection between your mental health and financial stability is significant. Research has shown that stress caused by financial problems tends to persist over time. Additionally, financial concerns are the primary cause of stress for many individuals, even more so than politics, family, and work.

Lack of financial wellness and literacy can result in financial stress. Just like with other stressful things in life, this type of tension can lead you to feelings of anxiety, depression, and being overwhelmed.

Individuals who have experienced mental health issues in the past often report that financial troubles worsen their mental health. Mental health and financial wellness are interconnected and impact each other in a cycle. Stigmas around debt or poor financial wellness may discourage individuals from seeking help.

How does financial wellness affect your physical health?

If you experience high levels of financial stress, it can have a negative impact on your physical health. This can result in problems such as:

  • Headaches or migraines
  • High blood pressure
  • Weak immune system
  • Digestive system problems
  • Muscle tension
  • Heart arrhythmia
  • Sleep difficulties

Your overall health will likely be poor if you have high financial stress and low financial wellness. These health issues often result in increased spending on medical needs. If you're struggling with your finances, this will only make things worse. Financial stress can also result in unhealthy coping mechanisms such as overeating, alcohol or drug use, and smoking.

How can you improve your financial wellness?

Your mental and physical health can benefit from improved financial wellness. Therefore, taking steps to enhance your financial situation is crucial.

Analyze your spending patterns

Take some time to review your spending and saving habits and compare them to your current financial situation. Look for patterns in how much and when you spend money, and then decide which expenses you can continue and which ones you should cut out. This will help you determine if your spending is in line with your means.

Ask others for help

There are many resources available to help you improve your financial situation. You can learn from books, classes, or a trusted mentor to learn more about managing your finances.

Create a budget

Record your expenses and create a budget based on necessities. Monitor spending to stay within budget.

Final Words

It is undeniable that there is a strong connection between financial wellness and overall health. A stable financial situation can significantly reduce stress, improve mental well-being, and enhance physical health. Therefore, it is crucial to prioritize financial wellness by properly budgeting, saving, and seeking financial advice. By doing so, one can improve their overall quality of life.