Money Talk

So, what actually is financial wellbeing?

Money Talk

At RiseUp, we’re about helping anyone to enjoy financial wellbeing. But what exactly does that mean?

Well, put simply, financial wellbeing is about your relationship with money. It’s about spending without guilt, checking your bank account without getting the fear, and having more honest conversations about money.

It’s about feeling secure and in control of your finances, enabling you to make decisions that support your lifestyle and goals without stress or anxiety.

Financial health vs. financial wellbeing

It’s important to distinguish between financial health and financial wellbeing. Financial health means the state of your personal financial situation. It’s about the numbers and figures in your bank account and financial statements. This includes your income stability, debt levels, savings and investments, and any retirement fund you might have. 

On the other hand, financial wellbeing is more about how you feel about your financial health. It includes your emotional relationship with money, your sense of security and your confidence in managing your money.

Two people with the same financial health status might have very different levels of financial wellbeing depending on their mindset, stress levels and confidence. For example, one of them might use RiseUp and the other might not 😉.

Financial wellbeing and mental health

There’s a strong connection between financial wellbeing and mental health. When we are worried about money, it affects our overall mental state. Anxiety about bills, debts, and unexpected expenses can lead to stress, depression, and anxiety disorders. Conversely, having a good handle on your finances can significantly improve your mental health by reducing stress and giving you a sense of control.

For our report, Riding the payday wave: Navigating the highs and lows of our money’, we surveyed over 2,000 Britons about their money and found that money worries are a huge cause of mental health concerns for many of us.

More than half (56%) say money issues affect their mental health, and financial issues filter down to all areas of our lives, including our eating habits (41%), relationships (33%), work performance (25%) and friendships (21%).

More than half of us (56%) say that a surprise expense of over £300 would have an impact on our mental health. 

So, how can we start to foster a good relationship with money?

  1. Wave goodbye to strict budgets

Tracking your finances every week gets pretty tedious. And when you inevitably blow your budget on an expensive lunch, it creates a spiral of spending and negativity. 

Instead, set one goal and stick to it. Whether that’s walking to work every Wednesday or batch cooking at the weekend, with small wins you’ll be quids in.

  1. Save enough to say enough

Sitting on an island drinking Caipirinhas for the rest of our lives is a dream for most of us. But financial flexibility is definitely doable. Build up an escape pot by putting a little bit aside each month, so if you ever find yourself in a job or place that makes you unhappy, you have the finances to hit the eject button.

  1. Let’s talk about money

In the UK, we rarely talk about money with friends and family. Lots of us are probably more likely to talk about our sex lives than our salaries.

RiseUp’s recent survey of over 2,000 Britons found that while 38% of us are left with less than £100 at the end of the month, a huge proportion of us don’t feel comfortable talking about money, even with those closest to us.

Almost half (48%) don’t ever discuss money with friends or don’t feel comfortable talking about it. 

What if we could take away the awkwardness and start talking? By opening up the conversation, we’re more likely to achieve our financial goals and help others to achieve theirs. Check out our community and join the money conversation.

Financial wellbeing benefits

Understanding and improving your financial wellbeing brings numerous benefits:

  1. Reduced stress: Knowing you have control over your finances lowers anxiety.
  2. Better health: Less financial stress leads to better physical and mental health.
  3. Improved relationships: Honest conversations about money can strengthen relationships.
  4. Greater freedom: Financial security provides the freedom to make choices that enhance your life.
  5. Higher productivity: A clear financial plan allows you to focus better on work and personal goals.

Financial wellbeing tips

Here are some actionable tips to improve your financial wellbeing:

  1. Set realistic goals: Focus on small, achievable financial goals rather than strict budgets.
  2. Automate your savings: Set up automatic transfers to your savings account to build your escape pot effortlessly.
  3. Use technology: Utilise apps like RiseUp to track your cash flow, predict financial trends and gain insights.
  4. Open up: Start talking about money with trusted friends or join a community, like ours at RiseUp, to share experiences and advice.
  5. Educate yourself: Regularly seek out information to improve your financial literacy. Whether that’s via blogs and websites, podcasts, or from organisations such as Citizens Advice and the Money and Pensions Service.

There are several RiseUp features that could help you on your journey to financial wellbeing:

  • Cash flow view: Connect all your household accounts to get a clear, organised view of your finances.
  • Predict the unpredictable: Use our monthly forecast to make informed decisions about your spending.
  • Give colour to your money: Get personalised insights and tips to understand your money better and grow your savings.
  • Work towards financial wellbeing together: Open a joint account with your partner to manage your money as a pair. No more bickering over budgets.

Want more tips to help you on your way to financial wellbeing? Check out our blog and join our community to carry on the conversation about money.

Try RiseUp today to start feeling better and less stressed about your money.

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