Exercising for Financial Health

We may love money, but it doesn’t love us. Ralph Waldo Emerson famously quipped, “Money costs too much,” warning about the unhappiness associated with pursing wealth. We all need money to pay bills and to enjoy a better quality of life. But there’s an insidious nature to how we spend money, how we talk with our significant others about it, and the impact finances have on our mental and physical health.

Debt, financial stress and spending behaviors are a major cause of relationship problems and often cited as a significant contributing factor in many divorces and breakups. Worrying about money and debt also causes increased anxiety, sleeplessness, depression and stress that taxes our hearts, contributes to high blood pressure, aggravates stomach issues like acid reflux and ulcers, and can lead to strokes and heart disease. When you consider that more than three out of four American families are in debt, the weight of all that anxiety becomes more apparent.

Most of us worry about money, and this time of year, that worrying gets worse. Or, we cast caution to the wind, spend beyond our means for the holidays, and figure we’ll bear down come January . . . much like we view our diets and holiday eating.  Granted, December may not be the best time to be considering cutting back on spending, so if we allow for reality and the joys of the season – and think about what we’re going to do differently in the coming months and years — that would be a great gift to ourselves and our families.

Planning and focus pay big dividends

There’s a difference between active coping and comfort coping – some of us eat more, spend more, devise short-term solutions, and find other creative avoidance mechanisms. Instead we should be thinking about informed, collaborative planning and strategies for dealing with our money issues. Creating goals is important – if we are working toward a home purchase, a special vacation, college or retirement savings we need a clear game plan and tools to help realize our dreams. So it’s important to think long term, but live with short-term daily strategies, as well.

Here are some tips for improving our financial health:

  • Make a budget. That sounds so basic and simple, yet many people fail to truly organize their financial lives, and to understand what they bring in and what goes out . . . and what they can truly afford. Is it possible that you actually spend $25 a week buying coffee and drinks on the road? Sure it is – and that’s okay, if you can afford the extra C-note a month. If you have a detailed budget and you stick to it, buying things during the day that make you happy is okay. If you can’t pay your phone bill, purchase oil for your furnace or buy a new interview suit, it isn’t.
  • Track your expenses. Whether you write it in a notebook, record it on your computer or download one of the many spending applications available for phones and laptops, tracking what we spend is an important tool for understanding our spending habits and for charting behaviors.
  • Avoid credit, or use it wisely. All that talk about how important it is to use credit cards to build up your credit report is bologna. If you can afford something, buy it with cash or use a debit card. If you can’t afford it, and it’s really important (like fixing the car, and for travel), use a credit card, but be diligent about paying it off as quickly as possible to avoid exorbitant finance charges or the seductive allure of instant gratification.
  • Talk to others about your financial concerns. Share your worries and issues with people close to you, especially your partner. Money worries cause countless troubles for individuals, for couples, and for families. The stigma and shame that accompanies money problems – and the weight of hiding those pressures – causes stress, anxiety and depression, as well. Candor and good communication helps alleviate some of the stress that comes with feeling like you’re bearing the financial burden on your own, or the sense of hopelessness that comes with every bill or debt collector’s call.
  • Consult a financial expert. You don’t have to have a ton of investment income to seek guidance from a financial planner or consultant. He or she can help you devise a savings strategy, determine wise, affordable investments, build your budget, and plan for the future more effectively.
  • Get help for managing your debt. If you have debt and it’s wearing you and your loved ones down, there are options and strategies for addressing your bottom line. Consolidation loans with a lower monthly finance charge can help you rid yourself of credit cards. Banks love when we only pay the minimum due, and profit greatly when we miss a payment and they can charge a hefty penalty. Avoid both by paying more than the minimum monthly payment, or by paying off the card completely as soon as possible.

There are services available to help negotiate payment plans and for consolidating debt, but many of them charge a service fee for this assistance. There also are support groups, free counseling services, and programs such as Debtors Anonymous, a confidential 12-step program available in Connecticut and across the country, where people with debt or spending issues can come together to examine solutions to their money issues, and find fellowship and support.

Money challenges us all, and there’s no reason to think that’s going to change. What can change is how we view our spending habits – if we’re not vague or frivolous about how, what and when we spend, we can take a big step toward improving our financial health, as well as our overall health and wellness.

# # #

Be sure to check out the CBIA Healthy Connections wellness program at your company’s next renewal. It’s free as part of your participation in CBIA Health Connections!