We’ve all heard of mental and physical wellbeing, but what exactly does financial wellbeing entail? Largely, it involves nurturing your finances and staying on top of them so that you’re in a comfortable position going forward. Good financial wellbeing can simultaneously improve your own wellbeing.
Inevitably, there are several factors that could influence this. Being aware of practical strategies to help you stay on top of your finances is a great first step. Here’s what you need to know.
Understanding financial wellbeing
Financial wellbeing can manifest in several ways, including financial security, financial freedom and financial confidence.
There’s no denying that there’s a link between money and mental health – and particularly in circumstances when you’re struggling for money. If you’re faced with crippling debt or large upcoming expenses, this can make you feel stressed and anxious. That’s why financial wellbeing is so important, as it can help alleviate these feelings. Simply having a plan of action to keep you feeling more secure can make all the difference.
Poor mental health can also compromise financial wellbeing. For example, if you’re feeling depressed, you may not have the motivation to manage your finances. Some people also find themselves overspending to experience a dopamine rush. Fortunately, awareness around financial wellbeing is spreading and some employers are even seeking ways of taking action.
Factors influencing financial wellbeing
An individual’s financial wellbeing can be compromised depending on the type of job they have, as well as how secure this is and how well-paid they are for it. On top of this, debt can be hugely impactful and particularly where it has gotten out of hand over a long period.
The amount of savings someone has can also make a difference to someone’s financial wellbeing. So can any investments that have been made.
Strategies for improving financial wellbeing
So, what steps can you take? Budgeting is a great place to start. It can help you trim down your spending in certain areas and establish how much you could realistically save each month. Things lik a savings account designed to help you improve your credit score could suit your circumstances. In the meantime, doing basic checks, staying on top of payments and spreading out your credit applications will help your credit score.
If you have debt that needs paying off, be sure to factor this into your financial planning. Use direct payment methods to help set up a system that works for you. In some situations seeking financial help from a professional or a dedicated charity may be the best solution to begin with.