Financial health is the state of having money-related needs fully met now and later in life. If a person is in good financial health, he or she feels secure about the financial future. He or she is not overly stressed about money and can enjoy life comfortably. In the opposite situation, a person can become stressed and experience anxiety. Human psychology and financial health work together in a cycle. If one is not good, it usually affects the other.
Financial health is defined as the state of being financially well, regardless of income level, i.e. maintaining the income-expense ratio, the ability to make wise financial decisions, and being prepared for sudden expenses. This concept refers to the ability to plan a free and secure lifestyle for the future by managing assets and debts in a healthy way while practicing financial responsibilities.
In order to be financially healthy, it is necessary to start by conducting personal finance observations. With the awareness provided by observation, one should set short or long-term goals for oneself. After taking steps for these goals, the observation process should be started again and the distance traveled should be monitored. Progressing in line with these steps will contribute to achieving one's goals. The important thing in this process is to continue these steps decisively and to manage financial health consciously.
What are the Effects of Financial Health on Mental Health?
The connection between your mental health and your financial health is great. Experts have found that stress caused by money problems lasts for a long time and that financial issues are the most important source of stress for most people.
Low financial health and literacy can lead to high financial stress. As with other stressful things in life, this kind of stress can make you anxious, depressed and overwhelmed.
Many people with pre-existing mental health conditions have said that financial difficulties make their psychology worse. One study found that the majority of people's financial health deteriorated as a result of their deteriorating psychology.
A person's psychology can be negatively affected if basic needs such as food or heating cannot be met. This makes it even more difficult to recover from mental health disorders. Experts have found that people experiencing severe financial difficulties are three times more likely to consider suicide.
How does financial health affect your physical health?
If you have high levels of financial stress, you are more likely to notice that it affects your physical health. This kind of pressure can lead to problems such as
- Headaches or migraines
- A weakened immune system
- High blood pressure
- Problems with your digestive system
- Muscle tension
- Heart arrhythmia
- Sleep problems
If your financial health is low and your financial stress is high, you are twice as likely to have poor overall health. Often, these new health problems lead people to spend more money on medical needs.
Financial stress can also lead to unhealthy coping mechanisms. If you are worried about money, you may be more likely to overeat, use alcohol or drugs and smoke. But these things make both situations worse. They lead to more health problems and can often cause even more financial stress.
How Can You Improve Your Financial Health?
In everyday life, financial stress can be a bad influence on financial decisions and can lead to overspending or underspending. This has been termed "retail therapy". Many people can't help themselves at times and spend on unnecessary things that they don't need, and in this way find relief. For example, limiting food intake in order to save money can be relaxing, but in the long run it can be damaging in both extremes.
Your mental and physical health can improve with stronger financial health. It is important to take steps to improve your finances;
Look for spending patterns: Review your spending and saving habits. Compare this to your current financial situation and decide if it fits within your budget. Look for a pattern in how much and when you spend money. Decide what spending you can continue and what you can cut.
Try to get support: There are many resources available to help you get well financially. You can get support from trusted sources to learn more ways to manage your finances.
Create a budget: Write down all your expenses and make a budget based on what you really need. Track your spending to stick to it.
Along with these, here are some ways to regain your mental health;
- Yoga
- Going for a walk
- Writing a summary of your day in a notebook
- Cycling
- Spending time in nature
- Take up a new occupation
- Interacting with your environment
- Listening to motivational podcasts