The Connection Between Your Finances and Your Wellbeing

Insight | by Stephen Kiggins
Health Wealth Image for Newsletter 2

Have you ever left a doctor’s appointment with a spring in your step and a fresh outlook on life?

And yet, just 20 minutes earlier you might have been sitting in the waiting room fearing the worst.

Of course, all you had to do was tell your doctor your symptoms to find out that no, you don’t have just six months to live (despite convincing yourself that might be the case after your Google self-diagnosis) – and you’ll actually make a quick and full recovery with a course of prescribed antibiotics.

Facing our health head-on can be challenging at times – and on those occasions it might feel easier to bury one’s heads in the sand and hope the problem goes away. Fortunately, our health problems rarely live up to our worst fears, but nonetheless it is always a good idea to consult an expert rather than relying on an internet self-diagnosis.

The same can be true for our finances, and believe it or not, our financial situation and wellbeing are intrinsically linked.

How our financial situation impacts our wellbeing

There’s a close connection between personal finances and mental health problems, according to the Money and Mental Health Policy Institute. Its research found that found that more than eight in ten (86%) respondents said that their finances had negatively impacted their mental health. Meanwhile, almost three quarters (72%) of respondents said their mental health had adversely affected their financial situation. The results point to a strong correlation and a vicious cycle.

Money-related stress and anxiety isn’t only experienced by less wealthy individuals – worrying about money can impact your wellbeing no matter what tax bracket you’re in.

Economic uncertainty and emotional wellbeing

Protecting your wellbeing can be even more of a challenge during times of economic uncertainty.

You only have to watch the news for a matter of minutes to feel it start to impact your mood. There’s so much talk currently of rising interest rates, soaring inflation and a weak pound, that you may be tempted to make impulsive decisions based on anxiety and fear of loss, rather than logic and reason.

It’s easy to forget that with a trusted adviser in your corner, it’s possible to get the evidence-based information you need, to protect your wealth — and in turn your wellbeing — in the long run. The news headlines might paint a picture of widespread doom and gloom, but your adviser will be able to cut through the noise by contextualising those headlines and turning them into actionable insights.

How good financial advice can keep you protected

A trusted adviser can provide you with a clear, effective plan to manage your wealth, reducing anxiety and stress in relation to your finances, in the same way that a good doctor will keep your health in check and give you peace of mind. Both professionals can positively influence your wellbeing.

Your financial adviser will ensure your attitude to risk is reflected in your portfolio, diversifying your investments across different asset classes to mitigate the impact of prevailing economic headwinds and market volatility. They will also help you manage your savings to ensure you have an allocation to cash that enables you to meet near-term purchases, as well as ongoing sustainable liquidity to cover fees and expenditure in relation to your children’s education and your family’s outgoings.

Understanding your needs and priorities, and your longer-term goals and aspirations, will enable your adviser to put in place a plan that addresses the short, medium and future health of your finances.

Attempting to navigate your own financial course, and trying to achieve financial independence without professional advice, would be much akin in medical terms to continually self-diagnosing and self-medicating, based purely on third party information and word of mouth.

Sometimes, the best thing for your wellbeing is simply to speak to a professional.

To book a free initial consultation with a Financial Adviser at Forth Capital click here

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