exploring the link between financial wellbeing and overall wellness
Wellness encompasses every aspect of your life, including your financial health. In the same way you’re conscious about prioritising your mind and body, nurturing your financial wellbeing can be just as vital to your overall health, contentment and fulfilment.
In this article, our partners at AIA Financial Wellbeing delve into the relationship between financial health and holistic wellness.
what is financial wellbeing?
Financial wellbeing isn’t just about the numbers. It’s a state of harmony that flows from satisfaction with your financial position, positive financial attitudes, and healthy financial behaviours. Think of it as feeling financially capable of maintaining your current lifestyle, while working towards your future aspirations.
the impact on mental and physical health
Did you know that your financial wellbeing can influence your mental and emotional health? Studies show that a significant 34% of individuals feel their financial situation negatively affects their mental health¹, while 70% link good financial wellbeing to improved physical health².
Financial worries can cloud your mind and affect your ability to concentrate on daily tasks. When your financial situation is stable and well-managed, you free up mental energy that can be redirected towards personal growth and enjoying life’s pleasures.
Research has consistently found that good financial health correlates with good overall health³. By prioritising your financial wellbeing, you have the potential to uplift other aspects of your life.
“When your financial situation is stable and well-managed, you free up mental energy that can be redirected towards personal growth and enjoying life’s pleasures.”
understanding the role financial literacy plays in your financial wellbeing
Financial literacy is all about understanding your financial situation and knowing how to make informed decisions regarding your money. AIA Financial Wellbeing explains that knowing how to budget, save, invest and manage debt can give you the power to plan for your future.
Being financially literate can help you foster a more harmonious connection between your thoughts, beliefs and behaviours surrounding money, allowing you to experience financial security and satisfaction.
signs it's time to check in on your financial wellbeing
Amanda Jones, Senior Financial Planner at AIA Financial Wellbeing, mentions that the first signs you should look out for are when you are experiencing increased levels of stress or are having difficulties maintaining your current lifestyle.
Another sign identified by Amanda is when you don’t have sufficient funds to support any unexpected costs, such as experiencing a flat tyre or an emergency vet visit.
taking the first step towards positive financial wellbeing
Amanda suggests starting simple when it comes to implementing strategies to better nurture your financial wellbeing.
- Use a budget calculator to assess your current expenditures. This can help you realise where your money is going and what potential changes you could make to your spending to better align with your goals. Regularly review your recurring expenditures, such as your utility and insurance coverages, and investigate whether you can receive lower rates.
- After assessing your current expenditures, create a detailed budget to track your spending and allocate funds effectively.
- Set constructive financial goals and identify habits that help or hinder your progress.
- Develop a step-by-step plan to achieve your financial goals. This may involve seeking professional guidance as necessary.
quick wins for positive financial habits
AIA Financial Wellbeing suggests building a positive relationship with your finances with these quick wins:
- Regularly conduct financial check-ins to monitor your progress
- Meal planning, cancelling unused subscriptions, and hunting for better deals can be a great way to help lower your discretionary spending
- Look for savings accounts with higher interest rates to help with your saving goals.
long term strategies for lasting financial wellbeing
No matter where you’re at in life, it’s never too late to start building a more solid financial foundation. Here are some tips from AIA Financial Wellbeing you can try:
- Putting together a plan for paying off any debts to help ease financial stress
- Creating an emergency fund for unexpected expenses
- An annual review of your superannuation investments can help your future financial position
- Setting clear and achievable retirement goals.
a journey towards holistic wellbeing
As you continue on your way towards greater wellbeing, remember just how important your financial wellbeing is to the overall equation. Take proactive steps towards achieving financial harmony as you nurture other aspects of your wellbeing as well.
If you feel you could use support in improving your financial wellbeing, consider working with a professional. The team at AIA Financial Wellbeing offer general or personal advice tailored to your unique needs, helping you take meaningful steps toward financial confidence. Learn more here.
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references
¹Mercer – Mental Health at Work 2018.
²Apis 2020 white paper, The Convergence of Financial and Physical Wellness, a New Paradigm.
³Manulife Financial Wellness Index 2016.
The information provided by AIA Financial Wellbeing is current as at April 14 2025. AIA Financial Services Pty Limited (ABN 68 008 540 252, AFSL 231109), trading as AIA Financial Wellbeing. All rights reserved. This information is current at the date of this publication and is subject to change. This provides general information only, without taking into account factors like the objectives, financial situation, needs or personal circumstances of any individual and is not intended to be financial, legal, tax, health, medical, nutritional or other advice. Before acting on the information in this publication, individuals should consider its appropriateness having regard to such factors.