The Vital Connection: Saving Money and Your Emotional Wellbeing
BY: Neighbors’ Consejo|
In the relentless pursuit of success and prosperity we often find ourselves navigating a complex maze of financial decisions. Our society places a premium on earning more, spending more, and acquiring more, often leaving us feeling trapped in a cycle of financial stress and emotional turbulence. It is easy to overlook a fundamental truth: The way we handle our money can have a profound impact on our emotional wellbeing.
According to Bankrate, more than half of Americans are behind in saving for retirement, and 16% of Americans aren’t saving at all [1] . So, why should you start saving money today [2] ? “Saving can give you freedom; saving provides financial security: saving means you can take calculated risks.
Barbara O’Neill, Ph.D., from the Extension Specialist in Financial Resource Management of the New Jersey Agricultural Experiment Station [3] , affirms, “saving provides a financial “backstop” for life’s uncertainties and increases feelings of security and peace of mind. Once an adequate emergency fund is established, savings can also provide the “seed money” for higher-yielding investments such as stocks, bonds, and mutual funds.” Bankrate [4] mentions 7 reasons to save our money:
- Having a safety net during hardships
- Meeting life goals
- Work flexibility
- Reduced tax liability
- More travel opportunities
- Relieve financial stress.
- Helping others
What is the relationship between financial and mental health? “Debt and financial problems can lead to poor mental health, such as chronic and long-lasting stress. And many people feel that money stress is harder than work and family-related stressors. Not surprisingly, if a person’s mental health is already bad, their financial wellness is also put at risk [5] .”
The same source [6] affirms, “unfortunately, many Americans don’t feel great about their finances. In fact, 42% say the money is negatively affecting their mental health, leading to stress, worry, anxiety, and feelings of insecurity. Millennials are the most anxious about their finances (48%) with Gen Xers a close second (46%).
How can we save money [7] ?
- Eliminate your debt
- Set savings goals
- Pay yourself first
- Stop smoking
- Take a staycation
- Spend to save
- Utility savings
- Pack your lunch
- Create an interest-bearing account
- Annualize your spending
Ultimately, the importance of saving money for emotional wellbeing lies in its power to grant us peace of mind, a sense of purpose, and the freedom to lead a life that aligns with our values. It is a small investment that pays immeasurable dividends in our journey towards a happier, more emotionally fulfilling life. So, let’s start saving today, not just for our financial future, but for our emotional wellbeing as well.
[1]https://www.bankrate.com/retirement/how-to-save-for-retirement/
[2]https://www.discover.com/online-banking/banking-topics/3-reasons-to-save-more-money/
[3]https://njaes.rutgers.edu/sshw/message/message.php?p=Finance&m=122
[4]https://www.bankrate.com/banking/savings/top-reasons-to-save-money/#:~:text=Saving%20is%20an%20important%20habit,money%20can%20help%20you%20thrive.
[5]https://www.securian.com/insights-tools/articles/relationship-between-financial-mental-health.html#:~:text=Relationship%20between%20financial%20mental%20health&text=You%20pay%20your%20bills%20on,is%20good%2C%20life%20is%20easier.
[6]https://www.securian.com/insights-tools/articles/relationship-between-financial-mental-health.html#:~:text=Relationship%20between%20financial%20mental%20health&text=You%20pay%20your%20bills%20on,is%20good%2C%20life%20is%20easier