A problem with your finances is a bit like a leaking shower or cracked drainpipe. It won’t go away if you ignore it. In fact, it’s only likely to get worse. And your financial wellbeing is too important to overlook. Persistent anxiety about money has an impact on your overall mental health and wellbeing, which can also lead to physical health problems. 

It’s a vicious cycle. It’s hard to focus on your finances when you are struggling mentally. And worrying about money only makes you feel worse. It might mean a scary period of coming to terms with your finances, but now is the time to get on top of them and stop the situation getting any worse.

Start with your why

If you don’t have a financial plan, you are not alone. According to research by St. James's Place, fewer than two in (38%) people have a financial place in place for the future (St. James's Place & CEBR, 2021). The good news is that of those with a financial place, 78% say it makes them feel more confident about their financial position (St. James's Place & CEBR, 2021). Taking steps to get organised is likely to make you feel better and more in control.

If you’re not sure where to start, it’s useful to work backwards from your end goal. What do you want to achieve? Once this is done it’s a lot easier to break it down into manageable actions and targets. Whether this is saving a bit more or spending a bit less, or realising that you need to reach out for the support you need.

“I’ve had a personal goal to retire to Barbados for many years, but never worked on a plan to get there. My consultation with Andersons was positive, clear, helpful and insightful. They helped me work out how I could increase my NHS pension contributions within my existing budget and consolidate my other pensions to achieve what I want.”

Alesia Waterman, Senior HR Business Partner, Moorfields Eye Hospital NHS Foundation Trust

Be proactive

Here are our five simple steps to help you get organised now:

1. Decide what is most important to you and define your long-term goals.
2. Take stock of your current financial situation, income and outgoings.
3. Create a realistic budget and be honest with yourself!.
4. Set short- and medium-term goals and track your progress.
5. Get support if you need it. If your employer offers financial advice, take it. If they don’t, talk to them about how they can help.

Make use of benefits

If you don’t already understand the benefits on offer from your employer then take steps to find out. Take full advantage of everything you can – you might be missing out on an opportunity to develop your finances if you don’t.

“My advice to anyone with a range of employee benefits they can opt into is make the effort to fully understand what’s available to you. And then take full advantage of whatever you can. It’s likely to be better value as part of an employee scheme than if you organise it for yourself.”

Alena Zavarin, Chartered Financial Planner, Anderson Financial Management

Valuable employee benefits to look out for include an employee pension, protections such as life insurance or income protection, and other insurances such as health insurance. It can be confronting to think about worst case scenarios, but these benefits could be extremely useful for you and your family should the worst happen.

You are not alone

Whatever your circumstances, there are positive steps you can take to improve your financial wellbeing. Working through challenges and achieving your goals is easier when supported by a network and the appropriate guidance. Check out our Curious Investor’s Guide to… Financial wellbeing at work for further information and advice.

Download our Curious Investor’s Guide to . . . Financial wellbeing at work.