New Study Links Financial Planning with Health and Happiness

For the majority of Americans money is a leading cause of stress, and we’re losing precious sleep over it – an average of 21 hours each month from stress.

The good news is that establishing a few healthy financial habits can help take money worries off your mind, reduce stress and actually improve your overall well being. 

According to a new landmark study,

people who take control of their finances

are healthier and happier!

Regardless of income, people who feel financially secure are significantly more likely to rate their health as excellent to very good and describe themselves as happy, confident and optimistic.

They’re less likely to say they’re worried, regretful or depressed. Those who are financially secure also report less stress and fewer stress-related health symptoms such as fatigue, anxiety and sleep problems.

If you want to be physically fit, you have to develop some healthy habits like exercising and eating well. What kind of habits does it take to be financially fit? I came up with 6 most important things everyone needs to do in order to be financially successful. Here they are:

My Six Financial Habits:

1. Spend within your budget!

Always spend less than you make!

A simple idea that’s also difficult for many people to follow.

With a plan and budget, you’ll know what to save for the future and what to spend today and remain in control.

Knowing where your money is going on a daily basis can be helpful for setting a realistic budget.

2. Pay off your credit cards every month and have good credit standing.

Living within your means and eliminating all or most of your debt, especially the debt on high-interest credit cards is a must.

3. Take active steps to protect your family from financial misfortune. Plan for the unexpected!

Three to six months salary in savings is a good rule of thumb.

Also consider protecting your assets and income with insurance to protect you and your family in case of death, unexpected disability or chronic illness

4. Have a financial plan.

The plan can be as simple as knowing your expenses, your income and what you plan to do with the difference. Knowing your net worth – your assets minus your liabilities – will give you a good snapshot of where you stand.

5. Have short- and long-term financial goals.

Part of your plan should be goals that you hope to meet in the next three months to one year, and then longer term, like five to ten year goals and then 20-plus-year goals.

6. Take active steps to achieve your financial goals.

Even small steps add up – the important thing is to do something and being consistent about it! Working toward your goal could mean cutting out impulse purchases or putting aside $100 each month to build an emergency fund.

They say that it takes 21 days to establish a new habit. So decide on some action steps, make some simple changes, and commit to a few weeks of practice.

Before you know it, your finances will be healthier than ever!

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