Do you want to know a secret? Anyone can suffer with poor financial wellbeing. That’s right – anyone. Regardless of whether you are the CEO of a multimillion pound company, or are a student with a Saturday job, you have the capacity to worry about finances.
Because of this, every single one of us needs to take practical measures to ensure that our financial wellbeing is positive. Why is this so important? Well, financial and mental wellbeing are fundamentally linked and can hugely affect one another in a number of ways.
It’s easy to see how if you are feeling concerned about your finances, it can have a knock-on effect on your mental wellbeing and vice-versa. Getting the basics right can be so important in ensuring that you have a healthy balance between the two.
Balancing the two can seem a daunting task, as they are both complex concepts. But don’t worry, here are three starting points that are known to help people’s financial wellbeing and in turn, their mental health.
Firstly, whether you feel as though you need to or not, it can only be a good idea to take stock of your money by creating a budget. While you might already have a vague idea of where your money goes, writing it out neatly or using a budgeting tool can be good to help you visualise where you are spending your money. Not only can it show how you can make the most of your earnings, but the visual nature of a physical budgeting plan can clarify your understanding.
Secondly, ask yourself how much of your wage is already spoken for before it even gets into your account. The chances are, quite a large proportion. What if I could tell you that it’s likely you could reduce this? Often, when it comes to utility bills and the like, we are not rewarded for our loyalty. If you haven’t phoned up your providers in the last year, then now is the time, and the same goes for your car insurance and mobile phone bill. Companies often add premiums in the hope that people like you and I don’t question them. Be proactive by questioning why these prices have gone up and ask if there is anything that can be done to reduce them, if not, consider switching. This will free up some discretionary income and relieve some financial pressure on yourself.
Lastly, you might feel quite financially healthy and comfortable that you have enough money to get by. That’s great! The question we ask here is, if you have savings, are they in the right place? Meaning, are you making the most effective financial decisions by keeping your money in the types of accounts you have chosen? While your emergency funds buffer might be best placed in an easily accessible savings account, it’s highly unlikely that this is the right place for your pension savings too. A quick conversation with a financial adviser will ensure that you understand your options, giving you confidence that you are making the right choices.
OpenMoney, an app created to give financial advice to those who have previously been excluded by traditional financial advice channels, can help with each of these things. It has an easy-to-use budgeting tool, a supplier switching service, free financial advice for its users and much more. Visit their website here and see how they can help you take the first steps to take a proactive approach in helping your financial, and mental wellbeing.