Of the relationships in our lives, our relationship with money is often the most overlooked—despite the fact that it can be crucial to our overall well-being. As more people prioritise financial wellness, we asked experts what that means and how to achieve it
Mind, body, soul … money? When it comes to self-care, the focus has always been on physical and mental health. But in the ongoing pursuit of holistic wellness, the intersection of psychology and money—and the effect that this has on our overall well-being—is an increasingly hot topic.
Financial wellness is defined as the ability to meet current and future financial obligations, while having the security to deal with unexpected emergencies and staying on track to meet long-term goals. Having a healthy relationship with our finances reduces preoccupation with money concerns, ultimately improving mental and therefore physical well-being.
While money can’t buy happiness—and you’re hearing this from us at Tatler—it can certainly save a lot of stress which has, time and again, been found to contribute to health issues including obesity, heart disease, digestive problems and Alzheimer’s.
In the ongoing pursuit of holistic wellness, the intersection of psychology and money—and the effect that this has on our overall well-being—is an increasingly hot topic.
Debt and other financial concerns can also have a serious and sustained impact on mental health, doing everything from crippling creativity to affecting personal relationships. When our minds are preoccupied with money-related stress—and money is the number one cause for stress for an overwhelming majority of adults—it makes it harder, if not impossible, to enjoy a full, balanced and happy life.
Take it from the world’s happiest countries. Finland, Iceland and Denmark—the highest echelon of happy countries according to the United Nations’ 2021 World Happiness Report—tend to have universal health care, ample paid leave and affordable childcare; proof that when fundamental human needs are taken care of, it leaves room, and money, to live well.
There may be a stereotype in Asia that money trumps everything, but there is an increasing awareness of its effect on wellbeing here, too. In 2019, OCBC Bank released the Singapore Financial Wellness Index, the first comprehensive study on the financial health of Singaporeans. “In 2020, our OCBC Financial Wellness Index survey that revealed some startling truths—that just half of Singaporeans had enough funds to sustain themselves financially for six months if they were to lose their job. Seventy-five per cent of Singaporeans were also not on track to retire at their ideal age or with their ideal lifestyle,” says Aaron Chwee, head of wealth advisory at OCBC Bank, adding that the Covid-19 pandemic emphasised the importance of financial literacy.
“[The pandemic’s] resulting economic uncertainties spurred Singaporeans to pay more attention to financial management,” Chwee says. “Individuals need to work out their budgets, income and expenses, and build up emergency funds. The Covid-19 pandemic made many Singaporeans more aware of their financial situations and also made many review and take stock of their financial plans. The hope is that these good financial habits will continue to prevail.”