3 valuable ways that financial planning can support your mental wellbeing


young woman smiling as she leans back from her laptopAfter an abnormally stressful year, and in honour of World Mental Health Day, which took place on 10 October, now might be the perfect time to consider both the mental health and wealth benefits of financial planning.

The BBC reported that the proportion of people showing symptoms of depression doubled in 2020 when compared to 2019. And mental health charity Mind reported that more than half of UK adults and two-thirds of young people experienced mental health deterioration between April and May of 2020 alone.

From bringing you peace of mind to helping you understand the more complex parts of the financial world, a planner is there to help much more than just your wealth. They are there to support you on your financial journey but can have plenty of positive effects on your mental health, too.

And there may be no better time to seek that help than at the tail end of the Covid-19 pandemic. But how exactly could a financial planner assist you and your mental wellbeing? Read on to find out more.

1. Help you understand complex and important financial decisions

A financial planner is there to help you more clearly understand the world of finance. Whenever a tough decision needs to be made, your planner will be there to break it down for you and make each option easier to understand.

A study by Royal London found that individuals who worked with a financial planner were far more likely to understand financial products and intricacies than those who hadn’t.

By working with a financial planner, you can be confident that you are fully informed when making financial decisions. Whether choosing which financial protection you need or deciding what to invest in, your planner can be there to make every choice simpler.

The professional knowledge and advice they provide can translate to lower levels of both stress and anxiety.

That same Royal London study found that people who take financial advice were less likely to feel anxious about their household finances.

2. Helps to give you a greater sense of control

The last 18 months have been utterly unpredictable. What was initially supposed to be a two-week lockdown turned into a near two-year ordeal, and, for parts of it, toilet paper became a rare luxury overnight!

At times, you may have felt like you’d lost control of your finances, or maybe even your whole life.

Not knowing what might happen to your wealth can be stressful. In fact, according to Aviva, 38% of people had trouble sleeping during the pandemic because of financial worries. Luckily, a financial planner can be there to restore and boost that feeling of control.

Royal London found that more than two-thirds of those who had received financial advice felt that they were more in control of their finances. This sense of control is important when you have specific financial goals that you are working towards.

For example, working with your planner to create a budget can be one such way of increasing the control you have over your finances.

Having an idea of how much you should spend on the various aspects of your life can help you achieve your financial goals more reliably and help you to live a comfortable lifestyle.

3. Help to reassure you and give you more financial confidence

Another benefit of a financial planner’s expertise is the confidence they can give you in your finances. This confidence they can instil in you can come in several different ways.

They can help you to build an emergency fund to help you prepare for any financial shocks that may come your way. They can help you prepare in the event of the worst, helping you sort out financial protection like life insurance or a Lasting Power of Attorney.

They can reassure you that you’re on track to complete any financial goals you have lined up, and they can act as a sounding board for your investment decisions.

The same Royal London study found that, when compared with people who have not received financial advice, a greater percentage of advised individuals feel:

  • Prepared to cope with life’s shocks
  • Financially secure and stable
  • Confident about the future.

A financial planner is there to help your wealth grow effectively. They will ensure that the unexpected is prepared for and will help increase your peace of mind.

Working with a financial planner has both tangible and intangible benefits

Financial planners are there for both you and your finances. While their main aim is to help your wealth grow, they can significantly boost your mental wellbeing at the same time.

A financial planner will help you stay on target towards your goals.

Get in touch

If you’d like to find out how a financial planner could benefit you and your mental health, feel free to email info@investmentsense.co.uk or call 0115 933 8433.