You do not have to be a psychology expert to know that finances affect people's feelings. Every person who has been through challenging financial situations knows first-hand how mentally draining being unable to pay bills can be. 

This mental pressure, at some point, starts to manifest in a decline in a person's mental and physical health, leading to a vicious cycle of poor financial well-being and declining health. This guide looks into the interconnectedness of financial wellness and physical health and what you can do to maintain this balance.

What Is Financial Well-Being?

Financial well-being is a holistic term that refers to a person's relationship with money and how it impacts their life. While earnings are a critical part of it, they are not everything. It also encompasses how a person thinks and manages their finances. 

Achieving financial well-being thus means you are not constantly worrying about money but have a clear understanding of how much is coming in and a definite plan for your expenditures and savings. 

Effect of Financial Wellness on Mental Health

Before financial issues impact your physical health, they will affect your mental health. According to experts, money-related stress tends to be chronic and are the leading stressors for most people. 

The opposite is also true. Achieving financial wellness means you feel more in control of your life and have little to no stress around money issues. It also means having a positive outlook on life, creating a vicious cycle of excellent decision-making and better financial health.

Effect of Financial Wellness on Physical Health

Higher levels of financial stress will ultimately manifest in poor physical health. It contributes to poor health in two ways: the body gives in to mental stress, and lack of access to medical services due to financial challenges contributes to deteriorating health.

Medical conditions that could result from too much mental pressure include headaches and migraines, high blood pressure, digestive issues, insomnia, heart arrhythmia, and a weakened immune system. 

It can also lead to lifestyle conditions linked to poor coping habits. For example, stress can lead to drug use or alcohol abuse, which ultimately leads to poor health. The opposite is also true.

The positive outlook in life a person has when in a state of financial wellness triggers the release of feel-good hormones, which contribute positively towards good health. It also means they can access health services when needed.

How to Improve Your Financial Wellness

The road to financial wellness is not straight for people building their wealth from the bottom up. So there, you can expect to go through seasons where your finances are on the rocks. You can take several steps to improve your financial wellness in such a situation such as:

Leverage Tax Breaks

You can explore the many tax breaks extended by the federal government to save some dollars. These savings can go a long way when you look at them in the long run. 

You can even explore tax benefits that have a direct positive impact on health. For example, supplements, exercise, and supplements offered by TrueMed can count as HSA and FSA spending, which is tax-deductible. 

Get Financially Literate

Financial wellness is not about how much a person makes. It is about how they handle and manage the little or the much they have, so if you have major issues with money management, it may be time for you to take financial literacy classes. 

Spending money on financial literacy in a financial crisis can feel like the antithesis of your goal. However, you will discover with time that it is the best thing you can do for yourself as it can help solve a chronic problem. It stays with you for the rest of your life.