Financial wellbeing is an important contributor to mental wellbeing. In fact, financial stress was reported by 61% of respondents in the 2019 UK financial wellbeing survey, more than any other cause of stress.1 And it’s chronic, with 27% reporting money worries on a daily basis, and 34% weekly.
Financial wellbeing is about feeling confident in meeting your financial needs over various time frames. That means meeting your short-term financial needs – food and rent, car/fuel and bills, as well as longer term financial needs – holidays or a new fridge. It’s also nice to know you have a “reserve” for unexpected expenses.
How can I improve my current financial wellbeing?
There are two options here; a) deal with the symptoms, or b) deal with the problem.
Dealing with symptoms of stress is the same for financial stress as it is for other sources of stress (you can find a guide on this within the current state of mind section). But dealing with financial stress at its source can be a longer-term solution and means better management of your finances.
Top tips for success
- Avoid making comparisons to your friends or family.
- Be realistic about your spending and savings goals.
- Creating and sticking to a budget might seem a little tough at first, but it pays off in the end (no pun intended). Budgeting helps us clarify our financial situation which is critical for good money management and helps our peace of mind.
External resources for more information
CABA.org.uk. https://www.caba.org.uk/help-and-guides/information/what-financial-wellbeing
Initiative for financial wellbeing https://initiativeforfinancialwellbeing.org.uk/
Mind website: www.mind.org.uk
References:
ONS.gov.uk
Personal and economic well-being in the UK: April 2019. https://www.ons.gov.uk/peoplepopulationandcommunity/wellbeing/bulletins/personalandeconomicwellbeingintheuk/april2019