“If your financial life is not in order, every other area of your life will be in disorder.”~ Bamigboye Olurotimi
* Understand the Impact of Finances on Your Life
- Generally speaking, mental health disorders can occur due to multiple reasons. However, an individual’s financial health has a profound and direct influence on one’s mental health. In fact, a 2010 study of the Royal College of Psychiatrists confirmed the same. According to it, 50% of adults struggling with financial stress in UK were also dealing with mental ill-health. In other words, your mental and emotional functioning experiences a turbulent phase whenever your finances goes out of control.
- As a matter of fact, your finances affects your mental health in many ways. Most of the times, disorders like anxiety, depression and stress are a consequence of issues in your financial well-being. In fact, these issues goes hand-in-hand with your finances.
- Moreover, the impact is not only limited to your mental health. You become more susceptible to heart attacks, strokes, and other serious issues. Besides, your overall health will surely disturb your personal and professional life.
Hence, it is immensely important to understand and acknowledge the impact of finances on various aspects of your life. It goes a long way in avoiding and treating mental health disorders.
* Gain Financial Literacy
- While it may be true that, finance is an immensely important part of life. In fact, even a minor disturbance in your financial health can trigger a lot of issues in your life. Above all, it deteriorates your mental health. As such, it is vital to learn every possible aspect of your finances. In other words, the best way to tackle your stress is to gain a deep insight into it’s cause.
- Financial literacy gives you the necessary skills required to restore control over your finances. It is bound to have a positive impact on your financial health which will enhance your overall well-being. It is vital to have a clear understanding about basic concepts of finance like budgeting, loans/ mortgage, investments etc. It will prepare you to take financial decisions confidently as you are backed with the required knowledge. This takes away the factors of uncertainty and fear that are typically involved in decision-making process.
- When you are equipped with facts and knowledge, you are able to plan strategically. In other words, you are in a position to manage your finances effectively. It eradicates the enormous level of stress involved in managing your finances. Consequently, your overall health gets a positive influence. In short, it encompases every aspect of your life.
* Break the Vicious Circle of Financial, Mental and Physical Health
- While it is true that financial, mental and physical health are all inter-related. In other words, any disruption in one leads to issues in other aspects of your life. Financial challenges often results in mental health troubles like stress disorders. This encourages unhealthy habits and lead to physical health issues. Poor health increases cost of maintaining your life, reduces productivity, etc. This further deteriorates your financial situation. In short, you are dragged into this vicious cycle with no hope of recovery.
- At first, it may appear impossible to overcome this situation. But with proper guidance and dedicated efforts, it is possible to break this vicious cycle. All begins with improving your financial behaviours. This involves controlling expenditure and extending savings. In short, developing sustainable habits to boost financial health. This will directly enhance your mental and physical health. Consequently, your productivity and income will increase leading to better financial health.
As a matter of fact, improving your money management skills will have positive consequences on your overall well-being.