24th July is International Self-Care Day. What does that have to do with financial planning? Well, a lot actually. Financial wellbeing and mental health are inextricably linked so improving your financial health will boost your overall wellbeing.
Financial wellbeing and mental health
The World Health Organisation places so much importance on self-care that it has dedicated the entire month of July as Self-Care Month.
24th July (24/7) was chosen as Self-Care Day to highlight the importance of prioritising our general wellbeing 24 hours a day/7 days a week.
When we think about taking care of ourselves, we usually imagine eating healthily, taking regular exercise, introducing good sleep practices and cutting out alcohol and smoking. And of course, those are great self-care objectives for all of us. But at Infinity, we believe financial planning also has a significant part to play in improving wellbeing.
This is backed up by research. In 2022 researchers analysed several studies linking mental health and finance and found ‘there was a strong and consistent positive relationship between debt and depression’, as well as ‘a positive relationship between poverty and common mental disorders’.
That’s why we believe that it’s worth taking some time to get your finances in order this Self-Care Month.
Five easy ways to boost your financial wellbeing and improve your mental health
Create a realistic budget and stick to it
Why it helps: A well-planned budget provides clarity and control over your finances which in turn reduces anxiety about unexpected expenses.
How to do it: Track all income and expenditures for a month. Categorise your spending and identify areas where you can cut back. Set realistic limits and regularly review and adjust your budget to reflect any changes in your financial situation.
Build an emergency fund
Why it helps: It is reassuring to know that you have a financial cushion to fall back on in case of emergencies. This is a definite stress reliever proven to give peace of mind.
How to do it: Aim to save at least six months’ worth of living expenses. Automate your savings to ensure consistent contributions to your emergency fund and top it up as your expenditure evolves.
Invest in health insurance
Why it helps: Unexpected medical expenses can be a significant financial burden. Health insurance transfers this risk to an insurer, ensuring that you have access to quality healthcare whenever you need it without having to worry about the cost.
How to do it: Research health insurance options available where you live. Consider coverage for medical emergencies, regular health check-ups, and any specific health needs you may have. Our financial advisers can help you compare policies from different providers to find the ideal one for you.
Plan for retirement
Why it helps: Knowing you have a secure financial future can reduce long-term stress and improve your current financial confidence.
How to do it: Start saving regularly into a retirement fund and optimise your savings to ensure that you won’t run out of money in retirement.
Seek professional financial advice
Why it helps: Nothing beats working with a professional who will provide tailored strategies to manage and grow your finances, giving you confidence and reducing stress.
How to do it: Contact us! Our advisers understand the unique challenges faced by expatriates and have a wealth of experience helping individuals and their families make the most of the opportunity of living in Asia to secure a rosy financial future and improve their financial well-being into the bargain.
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Of course, financial planning is about accumulating wealth but it’s also a crucial aspect of self-care and we believe very strongly in its power to improve lives.
If you’d like to experience first-hand the transformational effect taking control of your finances can have on your life, get in touch today for a chat with one of our advisers across Asia.
A leading provider of expat financial services and wealth management services across Asia.
