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Did You Know That Financial Wellness Is Important For Mental Wellness?

Financial wellness is nothing but the overall financial health of an individual and is also defined as financial well-being. Every single person, from a farmer to that of a CEO of a multi-national company values financial well-being and in the event of the lack of it, individuals crumble and fall, losing all hope and faith in life. One of the strikingly devastating real-life examples of the scenario can be understood from the sudden demise of VG Siddhartha, owner and founder of Cafe Coffee Day, who came to the heart-breaking conclusion that ending his own life was the best route to chose; due to the financial instability, the entrepreneur was facing.

On the other side, reports of the rising number of farmers' suicide in the country shine a light on the arduous truth that financial wellness is not an elite aspect, but something that plays a major role in the mental well-being of any individual [1] .

A vast and complex area, financial well-being and its impact on mental health have been studied in different perspectives, with researchers asserting that it does indeed have a connection. With financial wellness mutating into a topic much discussed in the current scenario, various organisations and companies have made it a priority to discuss on financial and mental wellness because the health and well-being of each team member are directly related to the overall success of the business [2] .

As asserted by Michael Kent, CEO of Azimo, "Rich or poor, it seems that financial anxiety is a part of modern life", and nothing is more accurate.

A never-ending cycle, financial wellness and mental wellness are linked to each other that the connection can be explained through an example. An individual undergoing financial problems are increasingly prone to stress, which is directly linked to one's mental well-being. Stress can cause damage to the immune system, reduce cognitive function and increase poor decision-making - which in turn contributes towards more financial instability [3] .

For a person to achieve mental wellness, it is necessary to for that individual to be in control of their thoughts, emotions and behaviour; which in turn enables them to handle challenges, build strong relationships and basically, enjoy life. And when one is constantly worried about their financial stability, it leads towards causing stress and tension, which can elevate towards serious mental illnesses.

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Some of the major factors affecting the financial wellness of an individual are overspending and late payments (late fee and interest). Various organisations have taken it upon themselves to introduce the importance of financial wellness as it is directly linked to one's mental wellness - studies reveal [4] [5] .

Making a budget and sticking to it is one of the primary steps taken towards improving one's financial wellness. Always make sure to have something saved-up for an emergency and make sure to allow yourself the occasional splurge as it is unrealistic and mentally taxing to restrict yourself from spending any money at all [6] [7] .

Consequently, it can be strongly suggested that financial wellness and mental wellness are resolutely linked with each other, where one is required to maintain the other. That is, financial wellness is essential for one's mental wellness and likewise, mental wellness is necessary for an individual to gain financial wellness.

View Article References
  1. [1] Jiménez-Solomon, O. G., Méndez-Bustos, P., Swarbrick, M., Díaz, S., Silva, S., Kelley, M., ... & Lewis-Fernández, R. (2016). Peer-supported economic empowerment: A financial wellness intervention framework for people with psychiatric disabilities.Psychiatric rehabilitation journal,39(3), 222.
  2. [2] Education, A. (2017). Wellness education.HEALTH EDUCATION,308100, 308101.
  3. [3] Wiklund, J., Nikolaev, B., Shir, N., Foo, M. D., & Bradley, S. (2019). Entrepreneurship and well-being: Past, present, and future.
  4. [4] Fletcher, E. H., & Price, D. M. (2017). Capacity and Non-Compliance: Mental Wellness Modules in a Community Health Worker Certification Course.Health Professions Education.
  5. [5] Zemtsov, A., & Osipova, T. (2016). Financial Wellbeing as a Type of Human Wellbeing: Theoretical Review.The European Proceedings of Social & Behavioural Sciences EpSBS,7, 385-392.
  6. [6] Britt, S. L., Klontz, B., Tibbetts, R., & Leitz, L. (2015). The financial health of mental health professionals.Journal of Financial Therapy,6(1), 3.
  7. [7] Brüggen, E. C., Hogreve, J., Holmlund, M., Kabadayi, S., & Löfgren, M. (2017). Financial well-being: A conceptualization and research agenda.Journal of Business Research,79, 228-237.

Read more about: mental health mental illness
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