financial wellness- what is it?
If you’re like most people, then you’re probably on the search for ways to improve your financial wellness.
For some, that might mean stashing a couple million in the bank for retirement savings. Or, it could mean having a $20 bill in your wallet for a cheap Friday night meal with your kids.
Either way, financial wellness is a big deal.
In fact, being more financially secure (and savvy) can help you feel better, reducing your overall stress and anxiety.
So much of the time, though, there’s more money going out than coming in.
It can be incredibly frustrating, to say the least.
Here, we’ll help you take those big emotions and turn them into motivated action.
It’s more than mind over matter or honing up on your math skills.
It’s about making the most out of what you have—and we’re not just talking nickels and dimes.
What It Really Means to Improve Your Financial Wellness
Improving your financial wellness will mean something different to everyone.
Still, what is financial wellness?
It’s more than the absence of money-related stress, according to Everyday Health.
Simply said, it’s being resilient with money.
It’s a feeling of being in control, having security and financial freedom all at the same time.
Yet, financial wellness doesn’t revolve solely around the amount of money you have.
Rather, it’s a type of “financial health”.
What it really means to improve your financial wellness is to improve your overall quality of life, too.
And it’s possible to do this simply by harnessing the power of your emotions.
But first, let’s review how all these different parts of life are even connected.
Understand the Mental Impact of Poor Financial Health
It’s an understatement to say that personal finances can cause stress.
After all, over 50% of Americans can’t cover an unexpected $500 bill without going into debt.
Yet, it’s more serious than sweating beads over a dead car battery, for example.
People with debt are far more likely to experience depression, anxiety, and other mental health issues.
Additionally, poor financial health often causes a decline in your physical health as well.
As outlined in Psychology Today, it’s a vicious cycle—money causing health issues and health issues causing money troubles.
Most of us have been in this boat a time or two (ahem, raising hand).
Therefore, to improve your financial wellness also means boosting your overall wellness, mentally and physically.
Understand the Financial Impact of Poor Mental Health
Earlier we said experiencing financial difficulties can cause anxiety, depression, and more.
Sadly, a decline in your mental health often results in more money problems, too.
For example, the go-to treatment for both depression and anxiety is often prescription medication.
After all, antidepressants are one of the most prescribed drugs on the market.
Yet, selective serotonin reuptake inhibitors (SSRIs) such as Celexa, Prozac, or Zoloft can impact your financial health in unexpected ways.
When it comes to landing a top-notch life insurance quote, many of these medications are cause for concern.
An underwriter may even “red flag” these drugs on your application.
Because of this commonly overlooked impact, we feature a post about the “red flag” medications here. In addition to being costly, it’s important to know that certain prescription drugs may increase your life insurance premium. Let’s be real, who wants that?
How to Improve Your Financial Wellness Using Your Emotions
When depression and anxiety are both prelude and postlude to financial issues, it’s vital to find a better way to cope.
For starters, pay attention to your emotions rather than trying to ignore your feelings.
No one volunteers to feel frustrated or out of control, but it happens.
So, hone in on these emotions.
Your emotions are going to lead you to what really matters in your life—your core values.
So, listen to these emotions and take note about the things that tug at your heartstrings.
Here’s the thing about improving your financial wellness, it’s easy to dive in head first.
Plenty of strategies exist to boost your money situation.
Implementing a method and seeing results is thrilling!
When you get excited about something, you want more of that thing.
However, building financial health is often a slow climb.
It can be so slow, in fact, that many people lose their momentum early on.
The way to stay motivated and encouraged is to let your emotions influence you—not dictate as in an anxiety-induced panic, but nudge you in the right direction.
Handle one financial issue at a time such as getting the car paid off or building your emergency fund.
The goal is to embrace the power of psychology to improve your outcome. Emotional intelligence can help to improve your finances.
It’s just a matter of harnessing that power.
Tackle Your Personal Finances by Creating a Game Plan
After honing in on your emotions, it’s time to make an actual financial game plan.
First, focus on the areas that really get your goad.
You can even work with a financial advisor to increase your financial literacy, boosting your long term goals.
For example, examine your financial goals.
Are you super worried about not having an emergency fund?
Then, put that first on your to-do list.
Do your credit cards carry more of a balance than what you’d like?
See if you can consolidate for better interest rates or transfer to a lower APR card.
Also, now is the time to identify any negative behaviors. According to Experian, bad financial habits can cause you to suffer from a money anxiety disorder.
If you are overspending, hoarding money, or frugal to a fault, it’s time to address it.
To identify these issues, keep current on your personal financial information using a financial planner.
This will help you avoid “financial shock” when you uncover any areas that need improvement.
Remember, tackle one issue at a time—retirement plans, credit cards, emergency fund, monthly expenses, etc.—to improve your financial wellness successfully.
Take the Next Step
It might seem out of reach to improve your financial wellness.
But we can help!
To help safeguard your family’s financial security, I’ve created an up-to-date guide for parents who need life insurance here.
My guide can help you with your long term life insurance goals, especially with little kids at home!
Plus, we can help you save money in the process, and who doesn’t like to save money?
Here at CB Acker Associates, we want to help you take care of your family.
If you’re ready to find a policy that fits your needs and your budget, we’re there for you!
With access to all the top rated life insurance companies, we work extra hard to get you the best life insurance rates possible.
You can even compare rates and benefits from over 40 providers with no obligation to buy here. Plus, it’s fast—under 60 seconds kind of fast.