Saving can be good for your health. Here's why...

Aug 17, 2022

Saving money makes your life better. For many, this sounds like a cliché, or some kind of pipe-dream, and they will shrug off any advice to develop a habit of putting cash away for a rainy day. Truth be told, it is difficult to convince oneself that saving money can improve the quality of your life when one has built up some bad habits over the years. It is also a challenge to change a lifestyle based on spending beyond one’s means, while cutting down on things you’ve grown used is never a fun thing to do. However, at the end of the day, rest assured that any effort in this direction is all worthwhile, because saving money has more benefits than you’ve ever imagined.

There is no doubt that people who live from paycheque to paycheque, spending all that they earn and saving nothing, experience tremendous amounts of anxiety and stress. Even if your reality does not fit in with this picture, you know how it feels when something happens – an unexpectedly high utilities bill, or unscheduled medical or legal costs – to put pressure on your finances, and how this can totally flip your overall mood. The stats don’t lie, research across the globe points to the undeniable fact that what people stress about most is money. We all know that our relationships with our significant others - our children, siblings, parents and other loved ones - all become strained under the stress of money, leading to an overall deterioration in our quality of life. There are also studies that clearly indicate that financial stress is linked to depression, anxiety and heart attacks, as well as with suicidal thoughts and tendencies.

The good news is that you can turn things around! Once you make a conscious decision to face the problem, you are already on the way to changing an important part of your life, towards a healthier you. Take the time to understand your current situation and think about where you would like to be, and how to get there.

Next – and this is critical – start by making positive changes. Your finances won’t get better on their own. Create new and better habits for yourself. Start with baby steps, by setting a budget (already a stress reliever in itself, as it helps you get a clear picture of the situation); decide which elements of your daily spending are the least necessary, and make plans to cut down on these (or remove them totally). You will already feel better about yourself, and you will start to see that money will become less of a source of stress.

Take an even more practical step towards reaching your new financial goals by opening a savings account. Saving money now, even just a little bit, can ensure you avoid money stress in the future. Don’t just set up a new account at your current bank. You want this money to be out of sight; and the only reason you should dip into your savings, is to pay for unexpected expenses. Keeping your savings separate from your everyday bank will reduce your temptation to ‘dip’. Also, try to pick an account with a low minimum balance. You don’t want to put pressure on yourself by having to maintain a high minimum amount in your account. An account with around a €100 minimum balance would be a reasonable option.

Once you reach the goals you’ve set for yourself, or you’ve successfully made some changes to your money habits, don’t be afraid to reward yourself. Make sure to pick rewards that will motivate you, like having a weekend break to recharge your batteries.

At the end of the day, changing your financial habits, and having a savings account as a cushion against any money-related surprises, will help you sleep better, focus better, and leave you and your significant other with more energy to enjoy each other’s company!