People that are looking to take care of their financial wellness need to recognise the intimate connection between financial stability and mental health.
Gary Feldman, Executive Head of Healthcare Consulting at NMG Benefits and Stian De Witt, Executive Head of Financial Planning at NMG Benefits share tips to help people integrate mental health into their holistic financial plan.
Understand the link between financial and mental wellness
Financial concerns can put people under significant financial stress affecting your mental health and overall well-being.
Anxiety about debt, fear of job loss, or the pressure to take care of your financial obligations can lead to increased stress levels.
It is crucial that people recognise and address these financial challenges as they emerge so you can achieve a balanced and healthy life.
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Financial literacy serves as a cornerstone for achieving financial wellness. You need to educate yourself on basic financial concepts such as budgeting, saving, investing and debt management.
Fostering financial literacy, can give people greater control over their financial situation to reduce stress and anxiety.
Access to emergency funds as a financial and emotional safety net
Having an emergency fund is not only a financial strategy but also a powerful buffer if you encounter any financial crisis.
Knowing that you have a financial safety net in case of unexpected events provides a sense of security that can ease mental stress that financial uncertainty can bring.
Tyrone Lowther, head of Budget Insurance recommends that people have three to six months’ worth of expenses saved up in your emergency fund.
Addressing debt and mental wellbeing
High levels of debt or over-indebtedness can be put significant amount of stress on your mental health.
To get rid of debt you should develop a debt repayment plan, prioritise paying off high-interest debts first.
You should seek professional advice, such as credit counselling which can provide guidance on managing debt and alleviating the financial strain.
Invest for the future - have a long-term mental health strategy
Investing is not just about growing wealth, it's a long-term strategy for mental wellbeing.
You should diversify your investments to mitigate risk and align your portfolio with your financial goals. Watching your investments grow over time can instil a sense of accomplishment and financial security, positively influencing your mental state.
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