How do your finances affect your wellbeing?

Taking care of your physical and mental wellbeing is important. But did you know there’s a link between financial security and our overall health?

When we feel on top of our finances, we may sleep better at night and are likely to be happier and healthier.

But you don’t have to be wealthy to feel financially well. Financial wellbeing is all about making the most of what you have and making sure it’s working in the right way for you and your family – both now and for the future.

Continued high cost of living – impact on mental health

The high cost of living continues to have a significant impact on peoples’ finances. The Financial Conduct Authority (FCA) asked adults in January 2024 how the increased cost of living had affected their wellbeing in the previous 12 months. Over two-fifths (43%) said that they had felt more anxious or stressed due to the rising cost of living, while one-fifth (20%) had suffered with their mental health.
FCA Financial Lives cost of living (Jan 2024) recontact survey¹

5 tips to help you improve your wellbeing, and maybe even your finances

1. Talk

If you’re finding things emotionally tough due to pressure on your finances, get some support. Speak to a friend, a family member, your GP. Talk to your bank, pension or insurance provider to see whether there are any additional support measures in place to help. Don’t struggle in silence as there’s help available. Sometimes just connecting with someone helps you feel listened to and supported.

2. Attempt to keep active

Easier said than done, you might say. But choose an activity that suits your level of fitness. A daily walk can boost your mood and your overall health. And exercise doesn’t have to be expensive. There are plenty of places where you can work out for free as well as group walks or bike rides – go online and search ‘free exercise’ where you live. You might even make some new friends.

For those with mobility or more challenging health issues, the NHS has some useful information, for example, pilates and yoga exercise videos suited to people with back pain.

3. Try to get enough sleep

Sleep plays an important role in helping our brains and bodies recover each day. Sleep also helps maintain a healthy immune system to fight off illness, helps maintain a healthy heart and weight and assists your emotional and mental wellbeing.

4. Find ways to relax and reduce stress

Get out and enjoy the outdoors, especially when the weather is fine. Some people enjoy gardening or spending time walking the dog, for example. You could watch a box set, listen to music, or try a mindfulness exercise.

5. Learn something new and be creative

There are plenty of podcasts and books on making the most of life including learning a new skill, starting your own business, avoiding loneliness, staying healthy and helping you plan for retirement so you can make the most of it when the time comes. You could also consider volunteering for a local charity and give back to your community.

Get help from an expert

Consider talking to your financial adviser if you’d like some help with managing your finances. They can help you review, move and consolidate your finances or with any debts you may have.

1. https://www.fca.org.uk/publications/financial-lives/jan-2024-recontact-survey-summary