The link between financial planning and wellbeing

The current cost of living crisis, against a backdrop of high inflation and continuous interest rate rises, is a significant cause for concern for millions of people.

According to the Office for National Statistics, 59% of UK adults reported an increase in their cost of living in July compared to June. As a result, 67% said they were spending less on non-essentials. 

It’s easy to see why people feel powerless and frustrated. A shocking 86% of people say that their mental health issues are made worse by thinking about money.

So, what can be done?

Financial planning: beyond numbers

There’s evidence to suggest that financial planning can not only help people achieve their financial goals, but it can also improve their mental and emotional wellbeing.

One of the key benefits of financial planning is that it helps people to feel more in control of their finances. When we have a clear plan in place, we can better manage our money and make informed decisions about how to spend and save it. This can reduce stress and anxiety around money, which can have a positive impact on our mental health.

Another benefit of financial planning is that it can help us to achieve financial momentum. Whether it’s saving for a deposit on a house, building an emergency fund, or planning for retirement, having a financial plan in place can help us to make progress towards our goals. This sense of accomplishment can boost our confidence and self-esteem, which are both important for our overall wellbeing. 

In addition to the mental and emotional benefits of financial planning, it can also have a positive impact on our physical health. Financial stress can cause a range of physical symptoms, such as headaches, stomach problems, and high blood pressure. By reducing financial stress through effective financial planning, we can improve our physical health and overall wellbeing too.

The statistics back this up

Royal London recently carried out research on the emotional value of financial advice.

They found that support provided through financial advice helps reduce worry by more than half – 21% of the advisers who took part said their clients were anxious about the cost of living crisis, compared with just 46% of the wider population. 

We’ve seen this ourselves. Our clients tell us they feel more secure and stable, less worried about retirement and more confident about the future after working with us.

How does it work exactly?

Well, by carefully analysing your financial situation and future aspirations, we offer personalised recommendations that align with your long-term objectives, fostering a sense of security and peace of mind.

We also act as coaches, enlightening you about financial concepts and strategies that might otherwise seem daunting. We aim to demystify complex topics such as tax optimisation, risk management, and investment diversification, ensuring that you’re crystal clear about the potential implications of your financial choices.

This knowledge empowers you to actively participate in shaping your financial trajectory, promoting a sense of control and confidence.

Moreover, we provide ongoing support and guidance, adapting strategies as circumstances change over time. This continuity ensures that you stay on track towards your goals, weathering economic fluctuations and life's unexpected challenges without compromising your financial wellbeing. 

Ultimately, this holistic approach extends beyond mere numbers; it focuses you and your aspirations for a fulfilling life. 

We hope you agree that by fostering a strong financial foundation, financial advice has helped to enhance your emotional wellbeing, and your ability to pursue your passions and dreams without being hampered by financial worries.

If so, please pass our details on to anyone you might know who is concerned about their finances – we’d really appreciate it!