7 Tips for Financial Wellness
Financial Wellness – Good health, not wealth should be at the core of your decisions about money.
As any wise person will tell you — and many have, from the Roman poet Virgil to Gandhi — health is wealth. The irony is that the converse is also true — a growing body of research suggests that financial problems actually can lead to health problems.
Financial stress has been shown to cause anxiety, migraines, sleep disorders and other physical ailments including high blood pressure and heart disease.1 And it’s not a rare occurrence.
A 2012 survey by the American Psychological Association (APA) showed that 69% of American adults felt that money worries created a significant cause of stress — higher than any other single stress factor. 2
This statistic was down slightly from the 80% of Americans who felt this way during the Great Recession of 2008-09, but it remains persistently high.
Over the past decade, psychologists coined the term Money Anxiety Disorder (MAD) to describe a condition of constant worry and unease about money. The emotions that arise from worrying about money can lead to health issues that affect job performance, relationships, and feelings about work-life security.
How to face health-related money anxiety
Many Americans resort to eating unhealthy foods, or eating and drinking to excess as coping mechanisms for financial stress. Health experts warn this can lead to long-term health issues, and instead recommend deep breathing exercises, which has a proven calming effect on the central nervous system. Regular exercise and sticking to a healthy diet can also be very helpful.
De-stressing about money
Financial experts often suggest taking a direct approach to analyzing your relationship with money so that you can manage financial stress. Some recommend taking one or more of the following steps that can help lead to financial wellness.
What triggers financial stress?
Not all people react the same to financial roadblocks, but there several major causes of money-related stress:
• Fearing the possible loss of a job
• Comparing financial situation to others — being anxious of “having enough”
• The effects of piling debts
7 Tips for Financial Wellness
- Understand the role of good health in your life — Money is never a substitute.
- Prioritize your savings and control your spending — Warren Buffett said it best: “Do not save what is left after spending, but spend what is left after saving.”
- Budget — You cannot manage your finances without a plan.
- Plan for life events — Experts suggest setting aside specific buckets for near-term emergencies, education and long-term retirement.
- Locate a trusted source for advice — This could be a colleague at work, an investment professional or a close relative who is sensible about money.
- Get the most out of the benefit programs you’re offered at work.
- Select “sleep well” investments that don’t cause anxiety.
By following these guidelines, you’ll be able to put financial wellness in the right perspective. Ultimately, the goal should be to know how to deal honestly with your feelings about money in ways that don’t compromise your health.
1 “Debt Stress: The Toll Owing Money Takes on the Body,” AP-AOL Health Poll, April 2008.
2 “Highlights of APA Stress in America™: Missing the Health Care Connection,” American Psychological Association, 2012. http://www.apa.org/news/press/releases/stress/2012/report-summary.aspx
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This material is intended to potentially assist you in planning for your future. Any analysis is a result of the information you have provided. Please note that individual situations can vary, and you should consult your tax or legal advisor for guidance and information specific to your situation.
First published by The Guardian Life Insurance Company of America (Guardian) GP017525 (06/16) 2016-24591 (Exp. 06/18). https://www.guardianlife.com/
The Guardian Insurance & Annuity Company, Inc (GIAC), a Delaware corporation whose principal place of business is 7 Hanover Square, New York NY. 10004. GIAC is a wholly owned subsidiary of The Guardian Life Insurance Company of America (Guardian), New York, NY.