When it comes to well-being, you may think of things like your physical health, mental health, and relationships. Yet, one crucial element that consistently influences well-being, but is sometimes overlooked, is our financial situation. The way you manage your finances can significantly impact your emotional and physical health, your relationships, and your overall quality of life.
Research by Australian Unity found that people with higher scores in the area of financial control tend to have higher overall well-being scores. Having control and stability when it comes to your financial life, means that you can enjoy the important things in life without having the burden of money weighing you down. On the other hand, if you are feeling stressed about your finances and overwhelmed by it all, it becomes more difficult to enjoy other parts of your life, such as spending time with friends or taking care of your physical health.
The role of finances in your overall well-being
Finances have a profound impact on our overall well-being.
Stress and Anxiety
The pressure of paying bills, keeping up with your debts, or dealing with unexpected expenses can take a toll on your mental health and could potentially lead to chronic stress or anxiety.
Physical Health
When your finances are a constant source of worry, you are more likely to neglect your health due to a lack of resources or the inability to afford healthcare.
Relationships
Financial troubles are one of the leading causes of divorce, with disagreements over spending, saving, and financial priorities sometimes leading to strained relationships.
Quality of Life
Ultimately, finances significantly impact your overall quality of life, with financial stability allowing you to access education, healthcare, and experiences that enhance your overall happiness.
Tips for improving financial well-being
Financial well-being isn’t just about having more money. It’s about using your resources to create a happier, healthier, and more fulfilling life.
Budgeting
Create a budget to track your income and expenses. Knowing where your money goes is the best way to gain control over your finances.
Emergency Fund
Building an emergency fund over time to handle unexpected expenses will give you peace of mind knowing that you are protected against unforeseen events such as job loss or medical bills.
Debt Management
If you can, by paying down high-interest debts, you can minimise financial stress and free up resources for saving and investing.
Retirement Planning
Planning for your retirement as early as possible will minimise stress in the future and allow you to feel secure in your financial future.
Financial Education
Continuously educating yourself about personal finance will mean that you are better equipped to make informed decisions.
Seek Professional Advice
Consult with financial advisors or planners to create a personalised financial plan and investment strategy.
Get the support you need in one place
The APS team is on a mission to help all Australians improve their financial well-being through a wide range of financial services. We want to support you in living your best life with peace of mind knowing that they are protected in the good times and the tough times. Whether you are looking for investment options, a loan, financial advice, or support with your tax and accounting, we are here to help you every step of the way.