Updated: Aug 27, 2021
Although that unpaid credit card or outstanding student loan debt may not seem like a wellness issue, financial problems can affect more than just your bank account.
What is Financial Wellness?
You may have heard of the term “financial wellness” but what does it really mean?
Let’s start with the basics.
The term wellness or well-being is defined as “the state of being healthy, happy, and free from worry.” Financial wellness refers to having a healthy, happy and worry-free relationship with your money.
Why You Should Care
The relationship between your financial wellness and your overall health are correlated more than you think. According to the American Psychological Association (APA), stress from people who struggle financially is often chronic and has a strong link to overall health.
Financial worries are the number one stressor across all age groups. The APA reports that nearly 70% of Americans cite money as a main reason they feel stressed. According to a 2019 Bankrate survey, over 50% of Americans lose sleep over their finances. Additionally, nearly 80% of people in the U.S. are losing sleep over daily expenses, unexpected expenses and uncertainty about the future.
Loss-of-sleep isn’t the only negative side effect of financial stress. Symptoms such as anger, fatigue, high blood pressure, and depression are all related to this issue.
It gets worse. According to a study conducted by the Northwestern University School of Medicine, “financial stress can be one of the most difficult kinds of stresses, particularly because individuals can adopt unhealthy coping mechanisms as a result.”
Unhealthy habits such as smoking, overeating, and eating unhealthy foods can result directly from financial stress. According to the APA, 33% of Americans reported these habits.
It’s Not About How Much You Make
Your income play’s a significant role in financial wellness, but higher income doesn’t necessarily translate to financial wellness or overall happiness. According to a psychological study from Purdue University, the ideal income point for individuals achieving an “emotional well-being” is $60,000 - $75,000. Further increases in salary beyond this level were actually associated lower emotional well-being. This can be due to a lack of financial planning, savings, and money management.
Tackle Your Financial Stress
We’re In This Together!
If you struggle with personal finance, it’s important to remember you’re not alone! 7/10 Americans feel stressed about their money.
Take a Deep Breath!
Money problems can cause worry, racing thoughts, and feeling out of control. Keep your mind occupied with healthy relaxation techniques such as deep breathing and meditation.
Getting outside, finding a fun activity, or listening to music are just a few activities you can do to help you think more clearly.
Don’t Shame Yourself!
“I’ll never pay off my student debt.”
“My credit card debt won’t ever go away.”
“How will I ever be ready for retirement.”
When your issues with personal finance become overwhelming and take over your mind, they often creates exaggerated thoughts which lead to extra stress you don’t need. Remember to put things in perspective.
Face your Fears
Assess your current financial situation and be honest with yourself. Ask yourself what got you to the point of feeling stressed. More than likely, there’s a chain of reasons that lead to your stress. The point of this isn’t to make yourself feel bad but rather to identify your struggles and make meaningful behavioral changes.
Start with a Budget
At Julep, we’re all about taking small steps toward positive behavioral change. Start with a basic budget that is realistic. Take a close look at your spending habits and find a pattern that you can improve on. Maybe it's as simple as reducing the number of meals you choose to eat out in a week. Whatever it is, make it personal and attainable for you.
Someone with a healthy level of financial wellness can pay down their debts, cover an emergency, and can handle a financial crisis (just to name a few).
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How Julep Can Help
Measure Your Financial Stress
While you wait for Julep to launch in the coming month's, take our FREE Money Mindset Quiz to find out what type of spender you are to help you start your journey toward financial wellness!
We’re Here For YOU
Here at Julep, we’re here to empower you in a non-shameful way to take control of your finances and help you live your best life.
We’re here to help you understand your financial behavior so you can make small changes that lead to better habits.
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