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Financial wellbeing: What it means and how it helps

11 Jan 2022
5 min read

Financial wellbeing is about having a good relationship with your money. Understanding your financial situation leads to individual wellness, confidence and happiness.

Financial wellbeing is about feeling safe and in control of your finances. It’s knowing with certainty that you can pay the bills and are on track for a healthy financial future.

It’s about feeling happy in life.

People who experience financial wellbeing are less stressed about money. This has positive effects on their mental and physical health. It also allows them to perform better in their lives.

Financial wellbeing is being able to manage everyday expenses as well as save for the future.

Money plays a big part in our lives.

We spend our lives chasing money and we live in fear of losing money or not having enough.

So, how much time do we actually spend thinking and planning our financial needs?

For many people, money is a subject to avoid.

Discovering your relationship with money

Here are a few questions that can help:

  • Do you open your bills or avoid them?
  • Do you look at your bank statements or do you leave them unopened in a pile?
  • Do you have more money coming in every month than going out?
  • Have you saved up enough money as a reserve for emergencies?
  • Have you sorted out your retirement planning to ensure you will have enough money in later life?
  • What is your net worth and what would you like your net worth to be in 10 years?
  • What does your net worth need to be for you to retire?
  • Would you like to be financially free and not worry about money?

Taking control of your money is a great way to face up to these issues and reduce anxiety relating to money. Tackling money problems head on and trying to understand your situation helps you to be in control.

Why is financial wellbeing important at work?

Work creates its own stresses and adding financial worries to the mix makes the situation much worse.

Money is a significant cause of stress in ways that can affect home life, social happiness, work performance and the desire to engage in previously enjoyable activities or hobbies.

Handling financial health is important to mental health, as both are related to your general sense of happiness and wellbeing.

How do you improve your financial wellbeing?

Take action and review your income vs outgoings

Spend time looking at your monthly income and expenses. Create a spreadsheet showing your monthly outgoings. Compare this to your monthly income.

Are there ways to reduce your expenses and save more every month? Saving a little bit extra a month can help build a nice lump sum for the future.

By understanding your finances, you release the pressure of worries that may have built up. The simple process of writing down your financial situation allows you to stand back and see the overall picture. This can be a big relief in allowing you to realise your financial situation is not as bad as you thought.

Save money to improve your financial wellbeing

Are you thinking about tax -free investments? Are you using your tax-free allowances?

Building up your money and savings on a monthly basis will mean you can build up a nest egg after several years. This is great for those big purchases like a new car or a house move.

Create an emergency fund for security

It’s always best to have a reserve account for the unexpected outgoings, and things beyond your control e.g. fixing the car or replacing a boiler.

Plan for your future with a pension

Time goes by so fast and preparation is always the best policy. Start contributing to a pension pot now so that you are prepared for when you are older.

Cover the unexpected with insurance

Do you have insurance and life cover for you and your partner? Always be prepared for every eventuality.

Speak to a financial advisor who can help you on the following:

  • Reviewing your pension to ensure it will reach the target you require for later life
  • Setting up monthly savings into a managed fund savings account
  • Setting up your life cover for you and your partner

How does financial wellbeing affect health?

We all want to be happy in life. And richness to life comes from feeling secure, safe and happy.

There are a number of benefits of dedicating time to your financial wellbeing.

Not only does financial stability lead to an increased peace of mind, it also results in less stress and worry. This results in better focus and productivity by having a clearer mind.

Financial stability can reduce the overwhelming fear or worry that comes with an unexpected future.

Having financial wellbeing is about being happy in life so that you can be rich in love and life. The benefits extend beyond your stress levels and positively impact relationships too.

If you’re feeling stressed or anxious about your financial situation, here are 7 tips to help:

We tend to live our lives in fear, stress and worry of what life will throw at us. And financial stress adds to those worries.

We are constantly bombarded with requests to do things in our lives, regardless of whether we're self-employed or working for a corporate company.

If that wasn't enough, we’re easily distracted by social media or TV, or what's going on in the world. Before you know it, we go from waking up with a clear head to suddenly having thousands of thoughts running through our minds.

At times, the chatter and constant internal self-talk can make it hard to figure out what we should be doing. It's an enormous task to filter through the noise and reach some clarity and stability; a place where you can figure out what needs to be prioritised and how you move forward in life.

So how can you practise and maintain calmness and happiness in day to day life and reduce your levels of stress and worry?

1.Use meditation to detach

You need to separate yourself from all the things you’re flooded with and emotionally invested in. Practising meditation every day, even for five minutes, helps clear the mind and allows you to see things a bit more clearly. This helps you to remain in the moment, and stop focusing on the future or the past.

2. Schedule breaks throughout the day

Schedule regular breaks, such as taking a walk or making a cup of tea, to redirect your thoughts to something other than the issues bothering you. By doing so, you allow your brain to reset and detach itself from daily stresses and pressures.

Taking a walk to observe nature and the beautiful scenery allows you to be in the moment. Observing using your senses gives you tremendous pleasure. This helps you appreciate and notice things for the first time.

3. Practice being in the moment

When you notice a beautiful scene in front of you, such as a stunning city, park, garden or beach, really take in the view. Fully absorb the scenery and feel the bliss of taking in such a wonderful view. Then, close your eyes and imagine that you can still see this wonderful view.

Repeat this over and over again until you can visualise the beautiful scene in front of you, as it continually makes an impression on your mind. You are fully in the moment and absorbed in the world around you. You will then be able to take this view that you have absorbed with you, and remember it whenever you like.

4. Try deep breathing exercises

Deep breathing exercises allow more oxygen into our bodies. Our regular breathing does not take in enough oxygen.

To breathe deeply, close your eyes, hold your breath for 12 seconds and then exhale fully. Repeat the below exercise 5 times to replenish your body.

  • First, we need to breathe in fully. Take a prolonged air intake and fill the diaphragm slowly, taking around 4-6 seconds to fill the lungs. Use the lower part of the lungs.
  • Hold your breath for around 12 to 18 seconds, allowing the fresh air to fill your bloodstream.
  • Finally, breathe out for around 6-10 seconds. You are releasing the deoxygenated air from your body until your lungs are empty. You can repeat this simple breathing exercise several times.

5. Repeat a positive affirmation

Such as "I am patient, I am in control of my life, I am relaxed in the work that I do and I have a great work-life balance." Repeating some of these mantras with your eyes closed for 5 minutes works wonders.

6. Write your problems down on paper

Use a piece of paper to write down your concerns, worries, struggles or the things you feel impatient with. Writing them down on a piece of paper allows you to see the bigger picture and helps you realise that some of your worries are not as big as you thought they were emotionally. You might find that of the 10 things you've written down, 7 of them are a waste of thought space and energy.

7. Stay focused and take action where you can

Focus on what you want and take control. Take-action to help your situation with positive steps forward. Remember to ensure that you are still heading towards your life goals.

Financial wellbeing webinar