75% of Kiwis worry about their money on a daily basis, is this you?

One of the biggest drivers of financial stress is not having control or knowledge of your financial situation. It is amazing how simply taking charge of your financial situation and putting a plan in place can take the weight of the world off your shoulders and create a more fulfilling life.   

Just imagine feeling the weight of financial worries lift off your shoulders, allowing you to focus on what matters. By improving our financial resilience, we can tackle stress head-on. We’re not just surviving—we’re thriving

Here are the facts to prove it!  

Research shows a deep connection between wealth and mental health: financial struggles can lead to stress, making it harder to earn and budget, which in turn increases stress levels. 

In essence, money and mental well-being influence each other. A 2019 survey in the UK found that half of those with debt issues also faced mental health challenges, and individuals with mental health problems were more likely to find themselves in debt. 

The impact of financial stress on health is significant. The latest Ipsos Global Advisor Study revealed that in 2022, financial worries were the top concern affecting Kiwis’ mental well-being. Previous surveys in New Zealand highlighted how money concerns can lead to missing out on social activities, avoiding health services, and making unhealthy eating choices. 

Here is a scary fact, research has shown that people who experience stress from financial issues and debt are 20 times more likely to attempt suicide than those who do not experience this type of stress (Click here to view article)

But here’s the encouraging part: a positive cycle can also exist, it’s not all doom and gloom. Recent Australian research confirmed that improving financial well-being can also enhance your mental health, and vice versa. 

So, how can you break the ‘vicious’ cycle and create a ‘virtuous’ one? By taking proactive steps to protect your financial goals against the unexpected. 

How to take charge of your Financial Situation! 

Set Realistic Goals 

Setting realistic goals is essential for maintaining a positive mindset. Break down larger ambitions into smaller, manageable tasks. This approach allows you to celebrate small victories along the way, boosting your confidence and motivation. When your goals are achievable, you reduce the risk of feeling overwhelmed or discouraged, making it easier to stay focused and committed. 

Create a Budget 

Establishing a budget is a powerful tool for financial and mental well-being. A budget helps you track your income and expenses, ensuring that you live within your means. By having a clear picture of your finances, you can make informed decisions, prioritize your spending, and avoid unnecessary stress. Knowing where your money goes can provide a sense of control and security, allowing you to plan for future needs and goals. 

Avoid Overextending Yourself 

It's important to recognize your limits and avoid taking on too much at once. Overcommitting can lead to burnout and heightened stress levels. Instead, prioritize your tasks and focus on what truly matters to you. By permitting yourself to say no or to delegate responsibilities, you can create a more balanced life, allowing time for self-care and relaxation, which are crucial for mental health.

Confidence in Your Decision Making 

To feel more confident in your money management, financial literacy is an essential ingredient to add to the mix.   

A strong foundation of financial literacy can support several life goals, like using debt responsibly and saving for the future. It’s an ongoing, never-ending journey of learning: the more you learn, the more you can expand your horizons and look forward to a happy financial future.  

Make sure you jot down a list of reputable sources to follow: here you’ll find some of our favorite financial podcasts and books for inspiration. Plus, check out our Education Centre regularly for more insights: as you might have guessed, we’re big fans of financial education. 

Secure your long-term future: 

Taking charge of your KiwiSaver can significantly impact your long-term financial future and mental peace. Regularly reviewing your contributions and investment choices ensures that you’re on track to meet your retirement goals. A well-managed KiwiSaver can provide a sense of financial security, reducing future anxiety about money and allowing you to focus on enjoying the present. Get your KiwiSaver Review here

That ‘sorted’ feeling…  

By actively managing these aspects of your life—setting realistic goals, creating a budget, avoiding overcommitment, expanding your financial literacy, and optimising your KiwiSaver—you can take control of your financial and mental health. Empowering yourself in these areas can lead to a greater sense of well-being and resilience, enabling you to navigate challenges with confidence and clarity.