The relationship between our physical, emotional, and financial health is often overlooked when we consider our overall well-being.
The relationship between finances and health
Our physical, emotional and financial health are interconnected, with an imbalance in one area affecting the balance in another.
According to a 2016 study by U.S.-based ReD Associates and Cognizant, financial problems are the main cause of health issues.
Worries about the state of our finances can cause us to experience stress, anxiety and depression, and health problems such as high blood pressure, heart disease, digestive problems and other health issues.
When we are stressed, many of us tend to engage in behaviors such as overeating, drinking, and smoking, which result in an unhealthy lifestyle.
We may become moody, lose focus and be unable to sleep, paving the way for other minor illnesses or worsening of existing medical conditions.
All will result in higher medical expenses.
Money worries are common for many individuals, households, and communities. According to a 2012 study conducted by the World Bank and Lebanon’s Institut des Finances Basil Fuleihan, 47% of all Lebanese do not budget expenses, 50.5% don’t remember what they spend their money on the week before, 31% prioritize their expenses according to their wants without paying much attention to their needs, and 47% do not have a saving plan.
A June 27 article in the Middle East Monitor reports that a study by Emirates NBD has revelated that some 55% of residents of the UAE have credit card loans, while 69% of the population has no retirement plans and, overall, 94% of the UAE’s population is under financial pressure.
So what steps can you take to improve your financial situation and overall well-being?
- Change your mindset: Instead of literally worrying yourself sick, take a step back, focus and adjust your financial strategy.
- Track your expenses: It’s important to record all your day-to-day and monthly expenses. Make a list of all your monthly expense categories, big and small. This will enable you to see where your money is going and to identify areas in which you can reduce spending.
- Prioritize your needs: What are the things you cannot live without? Avoid impulse spending and stick to spending only on necessities, to allow you to save money.
- Set realistic goals: Determine what it is you wish to save for. Is it to buy a house, pay tuition fees, or take a vacation? As you set your saving goal, take your significant other, children and other close family members into consideration – can they contribute, or do you pay monthly expenses on their behalf? Set the time frame during which you wish to achieve your goal.
- Create a budget: Based on a review of the expenses you tracked, estimate the amount of money you expect to spend in each category (food, clothing, gas, rent, tuition, etc.) throughout the month and monitor your bills and payments accordingly.
- Create a clear saving plan: Always save at least 10% of your monthly income and consider putting this away in either a (student) saving account or investing it in certificates of deposit.
- Stick to both your budget and saving plan: Once you record where your money is going, you can adjust your spending habits to stay on track. Evaluate your progress at the end of each month. In case of a slipup or unexpected expense, refocus, adjust your budget and move on.
- Consider consulting a financial mentor; someone who can help you create a sustainable saving strategy, based on your income, lifestyle and saving goals.
Your health is your most valuable asset and will benefit from a healthy balance between your physical, emotional and financial well-being! Improving your financial health may not always go according to plan, but you are still in control, can learn from the experience and move forward.
We’d love to hear from you! Please share your tips on budgeting and saving in the comment section below.
