Financial Wellness 101: Your Financial Wellness and Your Health

The unexpected relationship between financial wellness and health

Financial wellness and overall wellbeing are far more interrelated than you might think. According to the American Psychological Association, money is the leading cause of stress among American adults[1]. Stress impacts both mental and physical health, inducing symptoms such as headaches, irritability, sleeplessness, lack of focus, and anxiety.

On the other hand, satisfaction with your financial situation has been shown to have positive impacts on happiness and overall life satisfaction[2]. Like stress, happiness also affects your mental and physical state: Happier people sleep better, have stronger immune systems[3], and are 13% more productive at work[4].

Why should financial wellness matter to me?

Evidently, finances have an extraordinary impact on your quality of life, and therefore should be a priority when initiating any health or wellness plan. Just like nutrition, exercise, or mental health counseling, there are many actions you can take to begin to improve your financial health.

1. Understand your current financial state – Take a temperature check of your finances by calculating your total debt, savings, investments, expenses, and more. Having a bird’s eye view of where your money is going and where it is growing can give you a clearer picture of your current financial state.
2. Identify room for improvement – Now that you have an idea of what’s going on with your finances, think about which elements bring you the most stress, or the spaces where you feel you have the most room to grow. For example, you could decide you want to prioritize tackling outstanding debt. Or, you could determine that investing more of your money will yield even greater returns that you don’t want to miss out on.
3. Leverage financial wellness benefits – Now that you have an idea of what you can do to improve your satisfaction with your financial state, take advantage of the tools at your disposal! If your employer offers options such as literacy tools, financial counseling, savings options, or access to low cost credit, be sure you are tapping in to these resources as you set out to reach the goals you have in mind.

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[1] https://www.verywellmind.com/what-are-the-main-causes-of-stress-3145063#:~:text=them%20in%20mind.-,Financial%20Problems,time%20during%20the%20previous%20month

[2] https://www.psychologytoday.com/us/blog/the-good-life/200806/money-and-happiness

[3] https://www.healthline.com/nutrition/happiness-and-health#TOC_TITLE_HDR_3