Society today is a fast-paced environment and achieving wellness is not limited to physical and mental health, but also financial well-being. Financial well-being is having control over your finances and it not having a huge impact on your mental health.
The crossover between wellness and your finances highlights the reason why maintaining a healthy relationship with money supports a balanced lifestyle.
Building a strong financial foundation
Being financially secure can take a number of years to set up, especially when looking at your pay each month. But having a plan is essential for long-term financial wellness.
Creating a budget can help you break down your finances and track your outgoings and set money aside accordingly. It is financially savvy to factor in a specific amount to save each month to create an emergency fund. This means that when something happens that you can’t budget for, like your washing machine breaking, you will have a backup fund that you can dip into. Choosing the best savings account can help you save more as you can gain interest on some.
Seeking professional guidance
If you were to look after your mental and physical health, consulting a professional is always beneficial. The same goes for your financial health.
Your bank will have professionals that can help you but there are also charities that can help independently. Organisations such as StepChange and Money Helper offer free, impartial advice which is tailored towards helping with debt issues.
Balancing financial and non-financial priorities
Feeling comfortable financially does not mean you have to give up everything you enjoy in life in order to get your finances on track and start saving.
Finding a balance between living your life and being financially responsible can be hard, but it is important to take your mental health into account. Spending time with friends and family is helpful in keeping you mentally in top shape.
The same goes for exercise. That gym membership that you are using regularly, whilst expensive, is worth keeping as it helps to keep you physically and mentally well. Plus, with a proper budget, you will be able to factor that expense into your monthly outlook.
Setting clear financial goals
Defining your financial goals is a huge step towards gaining financial wellness. Whatever your goal, make it realistic. Aiming to buy a home in 5 years for most is unachievable.
Start off by looking at your budget and seeing how much you are able to put in a savings account each month. This will give you some direction as to what your forecast will look like for the future. If you have some debts to pay off, prioritise those before setting a new goal for anything else. Your starting goal could be something simple like saving £20 per month for a year.
