How Financial Planning Could Benefit Your Health

When we talk about financial planning, we often focus on the ways it could help improve your money management skills as well as your chances of reaching your goals (e.g., paying off debt, saving for retirement, etc.). But did you know that having a financial plan could also be beneficial to your health?

Money can be a stressor for many people

If you’ve ever felt anxious about money, you’re not alone: 66% of those surveyed by the American Psychological Association said that money is a significant source of stress – which can negatively impact your health both physically and psychologically. 

Financial challenges – be it a job loss, cash flow problems or retirement insecurity – could often cause a great deal of stress and anxiety, which has been linked to a number of health issues, including migraines, backaches, high blood pressure, and depression. Over time, these health problems could mean more trips to the doctor’s office and additional medical expenses, which could further strain your finances.

When we think about ways to deal with stress and anxiety, generally, we tend to think about exercising, eating healthy, meditating or checking in with a doctor.

Financial planning is probably not something that comes to mind as readily. But when you feel in control of your finances, you tend to experience less stress, have more self-confidence and sleep better.

Financial planning could help reduce anxiety 

Almost everyone has worried about money at some point in their life. Before you could start addressing your worries, however, it's important to pinpoint the sources of your financial stress (this is where working with a financial advisor could be helpful).

Once you’re able to understand the causes of your stress, putting together a financial plan to address them could help you regain a sense of control over your finances and reduce some of your money-related anxiety.

For instance, if you’re struggling with debt (which is a major stressor for many people), you could work with an advisor to come up with a debt management plan. They can also help you track your spending and savings to give you a better understanding of how your habits may be impacting your overall financial picture.

Whether you want to create a plan on your own or with the help of a professional is really up to you. The key is to have a plan!

Financial planning could help boost confidence

Not only could a well-thought-out financial plan provide you with a road map towards achieving your goals, but it could also give you the confidence you need to make those important, sometimes difficult, money decisions. 

Generally speaking, when you're confident in your ability to manage money, you’ll also feel better prepared to respond to financial setbacks head-on. And that sense of confidence could help boost your overall self-esteem.

Bottom line? Feeling good about yourself and the general direction of your life could positively impact your mood, resiliency and relationships with others.

Financial planning could help you get a better night’s sleep

This might sound obvious, but when you’re worried about money, you may find yourself struggling to sleep at night. It can be hard to turn off your thoughts if worries about market volatility or paying down debt are constantly on your mind. According to The Better Sleep Council, personal finance is one of the top factors that can hurt your quality of sleep. 

So how could financial planning help you get some shut-eye?

When you’re able to get those money worries out of your head and down on paper, you can begin to put together a personalized plan to tackle them in a specific and measureable way. And knowing that you’re taking proactive steps to address your concerns could give you the peace of mind you need to get some restorative sleep.

Financial planning could help improve your relationship

Money can be a significant source of stress for some couples. And if financial problems are left to fester, they could seriously strain your relationship with your partner. (Fights over money are a leading cause of divorce.)

When it comes to love and money, communication is key. It’s important to have honest conversations about your finances and how you’re going to manage your money together. 

To be sure, conversations about money can be hard for some people, so it might be worthwhile to bring in a financial planner, who could mediate potentially difficult discussions. For instance, if money matters are a constant source of conflict, what are the causes? What are the areas of agreements and disagreements? 

The point of having these conversations with a professional advisor is to help get both you and your partner on the same page financially, which could reduce the tension in your relationship and foster a mutual sense of financial security and stability.