Do you look after your financial wellbeing?

Most of us have experienced money worries at some point. We all deal with these differently, but financial stress can affect both mental and physical health. When we are stressed about money, it can also lead us to make poorer financial decisions leading to a negative spiral.

What is financial wellbeing?

Financial wellbeing is about feeling secure and confident that you have enough money to meet your basic needs, with a plan in place for the future. Staying in control of your finances reduces stress and benefits both your mental and physical health.

The impact of financial wellbeing on your mental and physical health

Your finances can have a massive impact on your mental and physical health, and the wellbeing of your family.

Mental health

• Money worries often lead to feelings of anxiety or low mood, which can affect concentration and productivity at work.

• Financial insecurity can disrupt sleep, reducing resilience.

• Stress and depression are more common in households with problem debt.

• Children in less well-off households are more likely to be diagnosed with a mental health condition.

Physical health

• Struggling to afford basics such as food, heating, or medication can directly harm health.

• Stress can influence diet, with people turning to convenience foods high in fat, sugar, and salt.

• Limited funds for exercise, sports, or gym memberships can reduce activity levels.

Getting on top of your finances

Spending even a weekend reviewing your finances and making a plan can help you feel more in control.

Make a budget

Know your income, outgoings, and disposable income. Both partners in a household should understand the financial picture. A written budget provides clarity and helps you stay on track. Free budget planner tools are available from MoneyHelper and Money Saving Expert.

Pay off debt

Debt can block financial progress, so paying it down should be a priority. If you need help, free support is available from MoneyHelper and Citizens Advice.

Set goals

Setting short and long term financial goals can help you stay on track and avoid feelings of overwhelm.

Examples of short term goals:

• Cut your monthly spending – set yourself a limit

• Avoid using credit cards – leave them at home

• Save for small repairs or home improvements

• Build an emergency fund (aim for 3 months’ salary, but any savings habit helps)

Examples of long term goals:

• Pay off your mortgage if affordable

• Clear expensive debts first

• Plan for retirement — use a pension calculator to check how much to save now

Paying off your mortgage is a great example of a long term financial goal

Try to set SMART goals to keep you motivated. These are goals that are Specific, Measurable, Achievable, Realistic and Time-Bound.

Think about which are the most important to you, which will have the biggest impact, and prioritise your list.

Money Helper has produced a Beginner's guide to managing your money.

It contains impartial, clear and helpful advice and tools to help you:

• Set up a budget or get your budget back on track

• Pay off loans and credit cards

• Set savings goals

• Deal with debt overwhelm

Our sources and for more information: www.moneyhelper.org.uk www.citizensadvice.org.uk