Money worries are a common and pervasive problem that can affect people from all walks of life. Research has shown that financial concerns can lead to mental health problems and vice versa. This article by experts at RBC Brewin Dolphin explores the link between money and wellbeing and how financial advice can help.
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The link between money and wellbeing
“Research by the Money and Mental Health Policy Institute has found a close link between money and mental health problems in England. Over 86% of respondents with mental health problems reported that their financial situation made their mental health problems worse, while nearly 72% said their mental health problems made their financial situation worse.
This isn’t just a problem for those with limited financial resources. Our own study of people working in the legal profession found that 94% of respondents said their finances caused them some degree of stress. This is a significant concern, as financial stress can have a negative impact on physical and mental health, relationships, and overall quality of life.
Four ways financial advice can help
“Tackling financial worries on your own can be challenging and overwhelming. This is where a financial adviser can make a significant difference. They can help you with nearly every aspect of your finances, but there are four key elements that are thought to define personal financial wellbeing.
Feeling in control
Having a firm grasp of your incomings and outgoings, and a solid budgeting and savings plan, can help you feel more secure about your overall financial situation. A financial adviser can help you:
- Review your bank statements to identify areas for improvement.
- Create a budget and savings plan that meets your needs and goals.
- Tackle debts and develop a strategy to reduce them.
Capacity to absorb a financial shock
You might be saving regularly, but would your finances hold up in an emergency? A financial adviser can help you:
- Build up a ‘rainy day’ fund to cover essential expenses. Having around six months’ worth of essential expenditure in an easy-access savings account could help you pay for unexpected repairs to your home or cover you during a period of unemployment.
- Explore protection products, such as life insurance, critical illness, and income protection. These products can vary enormously, so it’s crucial to seek financial advice on the right solutions for your individual needs.
On track to meet goals
You’re more likely to have a high sense of financial wellbeing if you feel like you’re on track to meet your objectives. A financial adviser can help you:
- Determine whether you’re on track to meet your goals such as paying for your children’s education or saving for a comfortable retirement.
- Develop a plan to make up any shortfall.
- Save and invest tax efficiently, for example through ISAs and pensions.
Flexibility to make choices
Have the freedom to make choices to enjoy life to the full. A financial adviser can help you:
- Build a picture of your life and project how long your money could last.
- Explore and stress test the impact of your choices on your future finances.
- Understanding the impact of your decisions helps to provide clarity and confidence about your finances.
Next steps
Money worries aren’t easy to tackle on your own. At RBC Brewin Dolphin, we can develop a financial roadmap that sets out where you are now, where you want to be, and how to get there. You can focus on enjoying life today, safe in the knowledge you’re doing the right thing with your money.”
By Graeme Milne, divisional director, financial planner at RBC Brewin Dolphin.
Learn more about RBC Brewin Dolphin or call: +44 (0)1224 267900.
RBC Brewin Dolphin is a trading name of Brewin Dolphin Limited. Brewin Dolphin Limited is authorised and regulated by the Financial Conduct Authority (Financial Services Register reference number 124444) and regulated in Jersey by the Financial Services Commission. Registered Office; 12 Smithfield Street, London, EC1A 9BD. Registered in England and Wales company number: 2135876
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