Health & Wealth
“Wellness” has been a major buzzword recently. With the new wellness trend, you mostly hear about fit teas and meditation apps— not retirement plans and savings accounts. However, financial wellness is a growing concept, and many businesses are implementing financial wellness plans for their employees. The Consumer Financial Protection Bureau defines financial wellness as “having control over day-to-day finances, being able to absorb a financial shock, being on track toward financial goals, and having the freedom to make choices to help you enjoy life.” Financial wellness can affect other areas of life beyond your bank account. It’s intertwined with wellness of the mind and body; addressing your wealth can have a positive effect on your health.
Just like other kinds of wellness, a lack of financial wellness can be a source of stress and struggle. In fact, finances are the most commonly reported source of stress for both men and women. Retirement, debt, and living paycheck-to-paycheck are just some examples of financial situations that may cause such stress. Tough money situations not only affect your finances, however, they also have a negative impact on your mental and physical health. People who experience financial stress are at a greater risk for insomnia, depression, anxiety, migraines, and high blood pressure. Additionally, for employees, financial stress has been shown to decrease work productivity and increase absenteeism. The widespread effects of financial stress can weaken professional and personal relationships. Financial wellness has the power to improve your mental state, job performance, and family life.
With small, achievable steps and a plan, you can achieve financial wellness even if you’re making under six figures or still paying off credit card debt. The key is to create a plan composed of small action steps rather than one giant leap. Everyone needs a budgeting plan even if your bills are paid on time. This is because a budget creates awareness of whether or not your spending is in line with your goals. However, it’s important not to be overly ambitious with your budget plan or financial goals. Aiming too high only sets you up for disappointment and discouragement. Rather, setting small personal goals can help you progress and create a sense of capability. Those who perceive themselves as financially capable are more likely to show higher levels of financial wellness. A positive mindset paired with concrete action prepares you for your financial wellness journey with a sense of endurance and success.
Financial wellness is often underrepresented in the current wellness trend, but it’s an important component of all kinds of health. Don’t let financial stress burden your mentality and relationships. When your financial situation is healthy, you have the freedom to make the most out of life.
- Holland, Kelley. “Financial Stress and Wellness: Understanding the Problem.” EverydayHealth.com, Everyday Health, 19 Feb. 2019, www.everydayhealth.com/wellness/united-states-of-stress/financial-stress-wellness-understanding-problem/.
- Holland, Kelley. “What Is Financial Wellness?” EverydayHealth.com, Everyday Health, 19 Feb. 2019, www.everydayhealth.com/wellness/united-states-of-stress/what-financial-wellness/.
- Spann, Scott. “Challenging The Myths About Financial Wellness.” Forbes, Forbes Magazine, 17 June 2018, www.forbes.com/sites/financialfinesse/2018/06/17/challenging-the-myths-about-financial-wellness/#1aa733c226fb.