Is there a link between your physical and financial health?
You often hear me refer to the term 'holistic health.' I'm a huge believer in encompassing all facets of life in order to promote good health. For me personally, being physically fit, having an active social life, enjoying a stimulating job as well as surrounding myself with positive people forms the foundations of good health. What I don't often refer to however, is the impact of your financial health on your overall wellness. Why might you ask is a fitness instructor talking about financial health?
Well let me indulge you......... I am married to a financial planner and we both blog for our respective jobs. One of his topics was discussing the link between financial health and your mental health. As we spoke about this topic at length, we quickly realised that there are parallels between our worlds when it comes to what encompasses overall wellness. So how can your finances impact your overall health? Well here are some stats from a study by core data on a study of over 1000 Australians:
66% of those suffering financial stress said that worries about their money lead to stress, anxiety and/or depression. This is 3 times higher than those not suffering financial stress.
Alarmingly, they are 8 times more likely to have poor sleep patterns and 4 times more likely to argue with their partner about money
So after discussing these statistics with my husband, I thought it would be a great topic to share and give you some tips on how to manage your financial worries. Shane fundamentally believes in keeping things simple when it comes to finances. He states there are several strategies to help you have a good financial rhythm:
Take control of your cash flow. This is not to say you need to race out and write a budget but rather having a very good understanding of your household spending and savings patterns provides you with the ability to make consciously good financial decisions.
Understand compounding interest. We are all impacted by compounding interest, we either earn it or we pay it. Doing everything to ensure you earn as much as possible and minimise the level we pay makes an extraordinary difference over the long-term.
Start investing. The long-term benefits of investing can provide financial stability in our later years, the sooner you start the better. This can be as simple as checking how your superannuation money is invested or starting a small investment plan.
Protect the things you can't afford to lose. For example, we all insure our car and often overlook insuring your most valuable asset, you. I would argue that if you lost your car you would be able to survive financially however if you lost your ability to earn an income the future is far from certain. As such, if you can't afford to lose something I am a believer that you should insure!
Whilst the above sounds simple and easy, Shane also acknowledges that people often don't know where start. His suggestion, is to write down your current position along with your desired state and start to take action, small or big and he guarantees that the simple thought of doing something will provide you with a huge sense of relief and positivity. Statistics tell us that you become 42% more likely to achieve your goals and dreams, simply by writing them down on a regular basis. This is not dissimilar to starting a health regime, we all know that first session is horrible but eventually it gets easier, the same can be said for your finances.
So, there you have it! Whilst it flies under the radar, financial health has a huge impact on several areas of wellness. Data from a US study by the big banks showed that 70% of people surveyed stated that good financial health had a positive impact on their physical health. This same study also showed that 81% of respondents found other goals easier to achieve when their finances were in order. So take back control and aim for holistic health in as many facets of the wellness wheel as possible!