It’s Stress Awareness Day on 6th November, and the ideal time to talk about one of the UK’s biggest sources of stress: money. The Money and Pensions Service has some interesting insights that illustrate people’s relationship with their finances. We look at why financial planning could reduce your stress levels and give you peace of mind for your future.
“47% (of UK adults) do not feel confident about making decisions about financial products and services.”
Money & Pensions Service
A lack of clarity can lead to money worries
Stress can have a huge impact on people’s mental, physical and emotional health, and money worries are one of the UK’s top causes. According to the Money and Mental Health Policy Institute, 86% of those surveyed with mental health problems said their financial situation had made their issues worse. When you are significantly stressed, this can affect your ability to think clearly, as well as how you earn, spend and manage your money.
It’s worth noting that it’s not just down to a lack of money that causes stress, but a lack of uncertainty. When you’re unsure of how much you have to support your lifestyle or your retirement, this can lead to guesswork and poor choices. By getting clarity over your finances, you will feel more in control, and this will build confidence and alleviate your stress.
When you’re busy and time poor, it can be difficult to monitor your savings and investment strategy, and you can easily miss tax relief deadlines. As well as practical and strategic advice, financial planning also has emotional benefits. Forward planning with a professional financial planner will not only reduce your stress, but it will help to improve your financial situation.
“63% (of UK adults) do not feel they can determine what happens in their lives when it comes to money.”
Money & Pensions Service
Don’t delay your tax planning or financial reviews
Nearly two-thirds of adults in the UK say they don’t feel in control when it comes to their money. When you lack clarity over your finances, it’s easy to worry that you’re missing opportunities or not doing enough with your money.
By avoiding certain financial decisions, delaying your planning, or reacting to headlines, such as Budget speculation, this will only worsen your money worries. The impact of doing nothing is likely to heighten your anxiety, and you could be missing out on useful forms of tax relief. So, don’t wait until year-end to look at your tax planning, as there are often opportunities you can take advantage of throughout the financial year.
“53% (of UK adults) have a plan for financial goals for the next five years.”
Money & Pensions Service
The benefits of financial planning
As only around half of people in the UK have a financial plan for the next five years, this is a worrying prospect. Financial planning reduces stress and gives you both clarity and control of your finances by helping you budget your spending and reduce any debt. Whether you want to improve your present or future lifestyle, it will help you set realistic financial goals.
If you would like reassurance and a structured approach, the solution is to get goal’s-based, fixed-fee, holistic financial planning advice. With proactive planning and a clear roadmap, you can replace uncertainty with confidence and take control of your future.
[h2] Financial Planner, Nottingham
As the year comes to a close, it can be easy to neglect financial reviews. But you could be missing out on tax efficiencies and valuable opportunities to optimise your investments. Instead of worrying about money and unnecessary financial stress, holistic financial planning will give you clarity and ensure you’re set up for the year ahead.
If you’d like to feel calmer and more in control of your finances before the end of the year, now’s the time for a year-end review. At Balance: Wealth Planning, we offer a holistic, goals-based, fixed-fee approach to financial planning to help you future-proof your finances. Our financial planners will carry out your year-end review, so you can build a plan that helps you achieve financial security in a tax-efficient way.
Get in touch with our financial planners to book your financial review.
Sources:
https://www.moneyandmentalhealth.org/money-and-mental-health-facts/
