Financial health and its effect on your physical well-being
As we look ahead to happier times, it's important to remember just how much our financial health contributes to our physical well-being.
2020 was a tough year, with the pandemic presenting unprecedented challenges. But while there were daily updates about the health impacts of the pandemic, not so much has been said about how its financial impact can affect your physical well-being.
Health impacts of money worries1
It's important to recognise that there is a correlation between the financial challenges that many people are facing, and their physical well-being. In a survey conducted in the US, 81% of respondents found it much easier to achieve other goals when their finances were in order, and 70% said good financial health had a positive impact on their physical health.
Poor financial health can have devastating effects on our physical well-being. Money worries are commonly related to stress and anxiety which can lead to lack of sleep, increased blood pressure and heart problems. Financial worries also contribute to mental health issues like depression.
As we try to look beyond the COVID-19 pandemic and a return to "normal", it is essential to place renewed importance on our financial health to keep our physical well-being on track as well.
Tips to improve your financial health1
Draw up a budget
How much you save and how much you spend is more important than how much you earn when it comes to building a solid financial foundation.
Savings first
Pay yourself first by putting money away every month before you spend.
Avoid bad debt
Debt can weigh heavily on you mentally so never over-extend yourself on bad debts.
Reduce debt
Pay down your debts as fast as you can by putting aside a little extra each month for repayments/payments.
Invest
A long-term investment plan is great for peace-of-mind and puts you on the path to financial success.
Have a safety net
It's just as important to have insurance/takaful for yourself as it is your home and car. You are your biggest asset.
Get professional help
Just like hiring a personal trainer to help with your health and fitness goals, a financial professional can help keep your financial health on track.
If your savings are not providing you with optimal returns through the recovery, perhaps it's time to take another look at your investment strategy. Your Relationship Manager can offer assistance and walk you through alternatives to grow your wealth whether it's unit trusts, bonds/sukuk and structured investments.