Money Mindfulness: The link between financial and mental wellbeing
Mental wellbeing and financial wellbeing are interlinked, yet finance is often excluded from conversations surrounding wellbeing. Even before the pandemic, studies found money to be one of the leading causes of stress.
It comes as no surprise that COVID-19 has increased these financial worries, with financial wellbeing sinking to its lowest levels in eight and a half years. Further research by Kantar shows that concerns around financial uncertainty now surpass health concerns, which in a global health pandemic really brings home the need to address financial wellbeing. When addressing financial wellbeing we must also consider who is being hit the hardest by the pandemic’s financial impact. A financial wellbeing report launched in August 2020 points to COVID-19 amplifying existing inequalities and intensifying financial worries ‘particularly among women, young people, Black, and minority ethnic groups, and people with disabilities’.
With such clear links between mental wellbeing and finance, why is financial wellbeing so often overlooked? One of the main problems, in my opinion, is that money is still seen as a huge social taboo, preventing people from having open and honest conversations. Another key issue is that financial planning and wellbeing are not properly taught in schools. An alarming rate of four out of five students say they are not taught enough practical money lessons in school. The danger here is that financial advice and education are only available for the privileged few. Accessible resources for financial and mental wellbeing are needed now more than ever.
So how can we incorporate financial wellbeing hacks into our daily routines?
Find small ways to feel in control
From personal experience of being overwhelmed by money worries at university, what really helped me regain a sense of control was to break down my finances. Creating a financial tracker, a budgeting spreadsheet or breaking down your finances in a journal entry can all be useful, practical ways to begin tackling feeling financially out of control.
Saving, particularly in this current climate can feel unachievable, but starting small can once again be the key. Re-evaluating your direct debits can be an easy way to cut unnecessary spending and begin saving. Another great way to begin saving effortlessly is by using a round up feature (which brings me to my next point).
Embrace technology
Take advantage of the wide range of money budgeting apps available, making saving more seamless. Several banks and money apps have a round up feature which allows you to put aside spare change from each transaction. For example, if you spend £2.40 on a coffee, this would be rounded up to £3 with the additional 60p added to a savings account.
Build an emergency fund
If there is one thing I’ve learnt over these past few months, it’s the importance of having a rainy day fund. While it’s easier to save for more glamorous events and goals, working towards an emergency fund is just as important.
Talk about money
Last but definitely not least, break the silence and talk about money. Talking about money can help relieve financial stress and make you realise you’re not alone. Being open about money can also instigate change as too often pay gaps are unchallenged because of the awkwardness surrounding money. Money should not be a taboo.
OTHER FEATURED ARTICLES
