The state of being financially well, or having a good financial wellbeing is understood to be "a person who has control over their day-to-day / month-to-month finances alongside the capacity to absorb a financial shock and is on track to meet their financial goals while still having the financial freedom to enjoy their life."
When presented with a definition of financial wellness, 4 in 10 people did not consider themselves financially well.
For 7 in 10 people, a key element of being financial well is being in control of their finances and having enough money to cover their monthly outgoings and standard of living they choose. For over half (54%), it’s about being able to save for their future.
Poor financial health not only creates stress and worry but can also have a further negative impact on health. More than half (54%) of people say their financial wellbeing has affected their mental or physical health in the past and 35% of people say regularly worrying about money influences their psychical or mental health.
Adam Bullock, UK Director of TopCashback.co.uk says: “There’s a direct link between feeling in control of your finances and good financial wellbeing. A lot of people can feel out of their depth when trying to build their financial wellness, especially if they’re struggling with a lot of debt, don’t know where to start or feel the road is too long. But there are small stepping-stones that could really help. From daily budgeting to savvy spending, little by little consumers can regain some control.”
Steps you can take to boost your financial wellness:
• Check your credit score using sites like Experian
• Note when you’ve been with an energy provider for 12 months to ensure you switch to save money, by using sites like uSwitch you can compare the best prices and get cashback.
• Pay off the debt with the highest interest first, then begin to pay the rest – don’t start saving until you’re clear of debt.
• Open a savings account and set up a direct debit to save whatever you can each month, anything from £1-£100 helps in the long run.
• Make sure you’re making the most out of your spending by shopping with a rewards credit card, American Express offer great cards and you can get cashback too.
