Financial resilience and emotional wellbeing
It's said that 'money doesn't buy happiness' - and in many ways this is true. Focusing on other parts of life are, for most of us, the most rewarding and where we find our 'happiness' – and that doesn’t necessarily improve by having more money.
Last Updated: 15 September 2022
And it’s fair to say that worrying about money is one of the primary reasons for keeping us awake at night. Unfortunately, the last few years have brought about a heightened anxiety in what the future holds. Brexit, a pandemic, war and now the rising cost of living have caused worry over job security, stalled retirement plans and even how to cover the costs of day-to-day bills.
So if money isn’t buying our happiness but keeps us awake at night, what can be done?
Although an abundance of money isn’t everyone’s primary aim, feeling comfortable about money matters to us all. Not having financial wellbeing can be all consuming, resulting in high levels of unease and a significant impact on our emotional wellbeing. So having the ability to make sound, sensible and informed decisions about money can boost your mood and maybe even your cash and investments too.
Focus on what you can control
Unfortunately, there are a lot of factors which affect your finances which you can’t control. So, let’s focus on what you can control – your own financial planning. And this is right at the heart of reaching financial wellbeing – having full control of your finances and the financial freedom to exercise choice and enjoy your life to its fullest.
So here are some valuable questions to ask of yourself to help you navigate the coming months and years:
- Fundamentally, how healthy are your finances? Do you have sufficient contingency funds that are easily accessible to help meet planned and unplanned expenditures in the short term?
- Is your income sufficient to meet your needs? Are you saving enough for the future or spending too much today? If there have been changes to your financial circumstances, do you need to revisit your financial planning and budgeting?
- What has this meant for the value of your investments? Has it changed your thoughts about the future? Are you now receiving less income from your investments and is this having a negative impact on your lifestyle? When did you last review your investments and revisit your strategy?
If these are all questions you have asked yourself and you’re satisfied with your answers, then perhaps you’re on the right tracks already. However, if you’re struggling to come to terms with the current situation and are feeling lost, a financial adviser can help.
We want to support you in managing your investments as best we can. Whether health is affecting the way you manage your money or you're dealing with the death of a loved one. Let us know and we'll do our best to support you.
We want to support you in managing your investments as best we can. Whether health is affecting the way you manage your money or you're dealing with the death of a loved one. Let us know and we'll do our best to support you.
Financial advice could also help your emotional wellbeing
A study by Royal London in September 2020 identified the value of financial advice relative to the positive difference it makes to “the emotional wellbeing of customers by making them feel more confident and financially resilient when compared to those who have not received advice”.
Of the 4,007 people asked, around 63% of those who received advice said they felt financially secure and stable. Compared with just 48% who had not taken advice.
Ways an adviser can help:
- Plot out your major life events such as retirement to give you a better picture of what’s realistic and when
- Put together a saving and investment strategy to help you reach your goals without impacting your current lifestyle if possible
- Review your investments to make sure you’re taking the level of investment risk that’s right for you
- Explore ways you could save tax and how that affects reaching your financial goals
Remember: investments and any income they produce can fall as well as rise in value so you could get back less than you invest.
Find out more about how advice could help.
Speak to our advisory helpdesk for free
If you’re feeling anxious about your financial future, our advisory helpdesk is the place to find out if advice could help you.
They’re not advisers and they don’t provide personalised recommendations but they’re essential in helping you make sure advice is right for you and that you’ll see value for money.
They’ll explain the advice charges involved and how the process works. After that, it’s your call if you’d like to proceed and speak to a financial adviser.
Hargreaves Lansdown PLC group companies will usually send you further information by post and/or email about our products and services. If you would prefer not to receive this, please do let us know. Your personal data will remain confidential, and will never be passed to any other company, unless required by law.
