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Financial Wellness – how your relationship with money can affect your overall wellbeing

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April 22, 2021

Natallia Smith
(TruWealth Advice)

Financial wellness refers to the ‘overall financial health of an individual’. Not based solely on your level of income, savings, superannuation or investments, financial wellness has a significant impact on your physical and mental wellbeing.

 

There are five elements of overall wellbeing:

  • Financial health

  • Physical health

  • Emotional health

  • Social connectedness

  • Job/Career satisfaction

 

Financial uncertainty takes a huge toll on physical, emotional and mental wellbeing

One of the biggest issues today, personal finances are the most common cause of stress for individuals, particularly when faced with a change in circumstances such as:

  • Divorce

  • Death

  • Unexpected expenses

  • Job insecurity

  • Retirement

  • Health issues

 

Difficulty managing debt, living pay-to-pay or other financial stressors can become overwhelming. Increased stress levels often lead to headaches, insomnia, heightened anxiety, and depression. Prolonged or chronic stress weakens our immunity and increases our propensity to develop illnesses. www.healthline.com/health/stress/effects-on-body

 

Awareness of financial wellness in the workplace is also growing.

 

‘In Western workplaces, there is a growing obligation for a place of employment to consider their employee’s financial wellbeing. Introduction of discussion, support, courses etc encourage employees to take responsibility for their financial wellness because it has a proven impact on workplace productivity and profitability. In the USA, 9 out of 10 mid to large-sized companies now offer financial wellness programs in an effort to produce a healthier and more productive workforce.’ www.everydayhealth.com/wellness/united-states-of-stress/what-financial-wellness

 

You don’t have to be rich to achieve financial wellness

Positive financial wellness involves:

  • Feeling secure and stable

  • Increased enjoyment of life

  • Freedom to make choices to help you enjoy life

  • Control over daily and monthly finances

  • Resilience – the ability to absorb financial shock / unexpected expenses/ reduction of income

  • Being on track to achieve financial goals

 

To assert your own path to financial security, it is important to define what financial wellness means for you. By knowing where to find relevant, accurate information you can trust, you will be able to make informed decisions and strong choices. Education, planning and learning how to effectively manage your money and safeguard your wealth will reduce your stress levels and allow you to enjoy a healthy future.

 

To improve your financial wellness, speak to a trusted financial advisor. For advice, contact TruWealth Advice on 03 8648 6534 or email contact@truwealthadvice.com.au