Navigating the Financial Wellbeing Journey
Stress can affect many areas of our lives. In some areas, we can see a direct correlation to how stress impacts them, while in other areas we are less cognoscente of how stress is playing a factor. When it comes to well-being, our financial stability plays an important role. When you can meet your financial obligations and contribute to your investments to develop your financial health, you are likely able to live from a place of monetary peace.
According to WebMD, if your financial wellness is low and you have high financial stress, you’re twice as likely to have poor overall health. Experts also found that you’re four times as likely to get some sort of condition. So the question becomes, “How can you create financial wellness and reduce financial stress?” There are four components that can be looked at – spending habits, savings choices, the amount of money borrowed, and planning (encompassing spending, savings, and investments). When it comes to spending, having a budget allows you to spend while keeping your goals in mind. Budgeting often gets a bad rap, however, choosing to look at it as “asset allocation” can make the term seem more palatable. After all, money is an asset and how you allocate it can be navigated with a budget. Next, learning to save is something that your future self will thank you for. The unexpected can happen at any time. Setting yourself up for success in the event of an unexpected life event makes dollars and sense. Money borrowed almost always comes at a cost. The challenge with that is the cost of borrowing money can become a pricey line item on your budget, so borrowing money in manageable sums with low-risk terms is generally a smart consideration. When it comes to planning, as the saying from Benjamin Franklin goes, “If you fail to plan, you are planning to fail.” At any and every stage of life and financial success, having a goal-oriented plan can help fuel a purpose-driven life. While some may look at a financial plan as being restrictive, the goal of a financial plan is to help you make monetary choices that lead you to financial freedom.
The intertwined relationship between money and stress can create a cycle of mental health concerns. According to the Money and Mental Health Policy Institute, they found that:
- 46% of people with debt also have a mental health diagnosis
- 86% of people with mental health issues and debt say that their debt makes their mental health issues worse
- People with depression and debt are 4.2 times more likely to still have debt at 18 months compared to their counterparts without debt
- Those with debt are three times more likely to contemplate suicide due to that debt
Additionally, chronic financial stress can trigger a variety of mental health issues including, anxiety, depression, fatigue, and sleeplessness according to the Mayo Clinic.
We’re in a day and age where solutions abound – we merely have to channel the courage and drive to get the assistance we need. Creating the financial health you desire can begin at any time – the key is choosing to start. While it may be true that learning to navigate your finances earlier in life has its own set of benefits, it is not to say that choosing to be more intentional and purpose-driven later in life doesn’t have its advantages as well. It is also important to consistently check in on your financial plan to make sure it is in line with your current goals and objectives. Over time, those can shift, so your plan should shift accordingly. Whether you are just beginning your financial well-being journey, or you are seasoned in the money management and investing department, there is no time like the present to take an honest look at where you are so that if adjustments need to be made, you can make thoughtful decisions to course correct where needed. After all, financial well-being is a journey, not a destination.

Written by: By Asset Preservation Strategies
Disclosure:
Asset Preservation Strategies (“APS”) is a DBA of Axxcess Wealth Management, LLC (“AWM”). Securities are offered through Arete Wealth Management, LLC (“Arete Wealth”). APS, AWM, and Arete Wealth are not affiliated. Advisory services are only offered to clients or prospective clients where AWM and its representatives are properly licensed or exempt from licensure.
The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor. All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.