Improving Both Your Finances & Your Well-being

Your financial choices influence your experiences today and tomorrow — even your future. How you save, spend, and manage your money can also influence your mental health and overall well-being. That’s why it’s so important to review your financial habits and consider what you’re doing well and what might be improved. Consider the following connections between finances and well-being and the action steps you can take.

According to the American Psychological Association, finances continue to be a top stressor year after year; stress affects physical and mental health, and it contributes to many health problems, including physiological and psychological disorders and diseases.  If finances are one of the main reasons for stress, then fixing your finances could also mean decreasing your stress and improving your health.

Cash Flow

Taking better care of your cash flow can help you worry less about making it to the next paycheck.  Tracking your spending can show you how your paycheck is working for you right now; likewise, saving money can show you how your paycheck is working towards your financial goals and provide more confidence when it comes to your financial future.

Action Step: Improving your money habits starts with knowing your money habits.  Whether it’s a little notebook, a spreadsheet, or an app on your phone, start recording your financial transactions (big purchases, small purchases, cash, credit, bills, etc.) to get an idea of your spending habits.  At the end of the month, you can review the list to see if there are any habits that might be adjusted to better align with your priorities or perhaps irregular expenses that need to be planned for if they happen again next year.

Relationships

Another common stressor around finances is that it can be a hard topic for people to discuss, even with loved ones. When people don’t see eye-to-eye on finances, the tension can eat away at that relationship.  Consider how taking the time to find common ground with your finances might help you grow stronger and closer.  Furthermore, communicating with your family about finances (e.g. how to approach money and stick to a common budget) enables you to celebrate together, knowing that each of you had a part in meeting your financial goals.

Action Step: Talk with your spouse or partner about financial goals and how you can work together to meet those goals.  Communicating and joining forces can help you reach your goals quicker; plus, it’s easier to sidestep the 5-star restaurant and eat at home if you both decide that it’s better to put the money towards savings for a much-needed vacation or your children’s college fund.

Productivity

It’s not uncommon for employees to spend hours each week distracted at work because of their finances. Financial distractions could mean decreased productivity or a higher probability of on-the-job injuries, which can influence one’s opportunity for promotion or even their ability to work at all.

Action Step: Establish a specific time each week or each month when you can assess your finances. (Remember to include your significant other when establishing a money meeting.)  Instead of worrying about money at work, start focusing on your finances when you can actually do something about it.

Your Money Coach can help you have a productive ‘money meeting’ by providing accountability and education.  People who work with an MSA Money Coach improve their work productivity and how often finances affect their health, as well as reduce how often they worry about meeting living expenses. For all the amazing outcomes we see in our members, visit our website. Better yet!  Schedule a coaching session so you can feel more confident about your finances and overall well-being.  Call 888-724-2326 today.