Show me the money...and happiness: The link between your finances and wellbeing

You've heard about the importance of diet, exercise, and mindfulness for staying healthy, but what about your finances? Turns out, your money matters more than you think when it comes to your wellbeing. Know why taking care of your financial health is a crucial part of a well-rounded approach to overall wellness. Is there really a link between your financial stability and your happiness? Let’s find out...

Financial health is basically all about how well you can handle your money and your current, future, and unexpected expenses. Can you cover your bills without breaking a sweat? Have you got your emergency fund sorted? And have you taken out insurance in case life throws you a curveball? All of these things, along with your savings, expenses, investments, and debts, will determine how financially fit you are. So, let's get those finances in shape, shall we?

Money and health facts

Money and health are like two peas in a pod, mate. They're tight, and they have a real impact on each other. I'm not just talking about the boring stuff, I'm talking about how money can seriously mess with your health. Here are some stats that show just how much financial stress can affect your wellbeing.

The impact of financial health on your wellbeing

Your money problems are more than just a pain in the arse. When you're struggling with your finances or constantly worrying about money, it can take a toll on your physical and mental health. Think anxiety, sleepless nights, headaches, and dodgy tummies. And hey, financial stress can even make you turn to dodgy coping mechanisms, like binge-eating late-night burgers? 🙈

But here's the kicker—if your physical or mental health takes a hit because of money drama, getting help can be a bloody rip-off and unhealthy cycles can develop.

To break this cycle, it's essential to prioritise your financial health as part of your self-care routine.

Simple steps to improve your money situation

Taking control of your financial health doesn't have to be overwhelming. Start by looking at your current financial situation. Take a peek at your savings, debts, and spending habits. It's like giving your money a health check!

Next up, create a budget to make sure you don't go nuts with your spending. Plus, having a budget helps you save some cold hard cash and can help you manage your money better, ensuring you don't spend beyond your means and enabling you to set and achieve savings goals.

Building an emergency buffer is another smart move as it's always a good idea to have some cash stashed away for a rainy day. Aim to save 3-6 months' worth of expenses in your emergency fund to keep you stress-free.

And speaking of unexpected stuff, don't forget about insurance. It's like having a security blanket for your money. If you can't work because of some dodgy illness or injury, or there's a massive loss, insurance makes sure you and your family are covered.

MAKE BUDGETING EASY

Get yourself a budgeting app where you can access on your phone or the good ol' internet, so you can keep track of your cash wherever you go. Plus, no more brain-busting math—let the app crunch those numbers for ya! Just remember, you might have to tinker around a bit to get your spending categories bang on.

Building wealth is like building a house, and Glen James's book "sort your money out" gives us the blueprint! In his book, former financial adviser and host of my millennial money podcast Glen shares a life-changing approach to the major milestones of your personal finances, such as dealing with debt, embracing a realistic spending plan that works, buying your first home, investing in shares and creating the plan you need for long-term financial success. Let's dive into the foundations of a sound financial house that will set you up for success.

Foundation 1: have a spending plan in place

Your spending plan is the airport of your financial life.

Without good structures you may find your little airport is in chaos and has caused some flow-on network effects such as consumer debt, poor or no savings, over-spending and even over saving.

Foundation 2: cashed up and debt free

Cashed up
Set up an emergency fund for anything unexpected that comes up through an online savings account.
Debt-free
Get rid of all consumer debt in your life and never go back.

Foundation 3: a personal protection plan

Get life insurance or income protection. Ensure your income is protected in the event that the unforeseen or uncontrollable occurs.

Foundation 4: a Will and estate plan

Your Will doesn't have to be drawn up by a lawyer, but if you care about your loved ones, it probably should be. Clarity is always kind.

Source: sort your money out & get invested by Glen James

PUT YOUR “NEEDS” FIRST, “WANTS” SECOND

Your needs should be your top priority when it comes to budgeting. Once you've taken care of the essentials, then, and only then, should you even think about splurging on wants. And guess what? If you've got some cash to spare after all the must-haves are covered, you don't have to blow it all. Save it, invest it, do whatever you want with it! The choice is yours.

Hold up, we're not just talking about crunching numbers and cutting expenses here. No, no, no. We're talking about improving your whole darn life!

You see, if you want your finances to shape up, you got to take care of your physical health too. It's a package deal, like a two-for-one special at the pub (but without the hangover). By focusing on your physical and mental health, you'll become a productivity machine, attracting opportunities left, right, and centre. You'll make smarter decisions too—because who wants to make a dodgy financial move when they're feeling tip-top?

I know it's not a walk in the park. So start slowly, make little changes, and stick to 'em like Vegemite on toast. We're in it for the long haul, and we reckon you should be too.

So get ready to leave your financial worries in the dust, grab a green smoothie (if that's your thing), and let's crack on with this healthy lifestyle like a champ!

Sources:

Show me the money...and happiness: The link between your finances and wellbeing

What is financial health?

Money and health facts

The impact of financial health on your wellbeing

Simple steps to improve your money situation