You may think that your financial health and physical or mental wellbeing are separate domains, but a new study has revealed just how entwined they can be.
Research from the University of Bristol found that people who save money:
- Have higher mental wellbeing scores
- Are more satisfied with their life overall
- Are more optimistic about the future
- Sleep better at night.
The correlation remains even when accounting for income levels.
Saving benefits both your financial stability and overall wellbeing – and there are several other areas where these two elements intersect.
Read on to discover three more practices that could improve your financial, physical, and mental health.
1. Quitting smoking
Smoking significantly reduces your life expectancy and quitting is one of the quickest ways to improve your health if you are a smoker.
There are also mental health benefits to quitting, and the NHS reports that doing so can reduce anxiety, depression, and stress levels, as well as improving your mood.
On the financial cost of smoking, the BBC reports that the average smoker spends £20 a week on cigarettes, which equates to £1,040 a year. So, if you smoked for 20 years, you would spend £20,800 in total on cigarettes.
However, if over that 20-year period you chose to invest the same money, it could grow in value significantly. Indeed, average returns of 5% would see your investment grow to be worth around £34,000.
So, quitting smoking can not only save you money, but it could also grow your wealth if you choose to reinvest it wisely.
2. Cutting down on drinking
Drinking alcohol to excess is strongly linked to high blood pressure, strokes, liver disease, and many other significant health issues. There is also some evidence to suggest that heavy drinking can lead to depression.
Of course, it is perfectly possible to enjoy alcohol relatively safely, by consuming it on infrequent occasions and in small amounts. But research from Drink Aware found that 32% of men and 15% of women drank more than 14 units – the recommended upper limit – each week.
When it comes to the cost of drinking, a study by Alcohol Change found that the average drinker spends £62,899 on alcohol in a lifetime. Assuming the average person drinks between the ages of 18 and 80, that’s just over £1,000 a year on alcohol.
As such, if you were to cut down on a third of your drinking, you could save £333 a year, on average. If you then reinvested that money every year of your life as a drinker and had an average return of 5%, you could have a staggering £130,494 – based on only £20,646 of contributions.
Of course, it’s important to note that this is an extreme example, but it serves to demonstrate how making small changes can make a considerable difference to your long-term physical and financial health.
3. Choosing to walk or cycle instead of using a car
As well as being good for your financial, physical, and mental health, opting to walk or cycle instead of using a car comes with the added benefit of being environmentally friendly.
Even gentle walking and cycling can be great forms of exercise that can help you maintain a healthy weight and keep your bones and muscles strong, as well as improve your mood and reduce your stress levels.
While you may already have a car and still need it for certain journeys, you can still save a considerable amount by reducing your overall use of it.
The AA conducted a survey and found that the average motorist spends £107 on fuel every month –£1,284 a year. And research reported by the BBC found that 60% of car journeys are for distances between one and two miles.
So, if you were to walk or cycle short journeys between one and two miles, you could reduce your car journeys by 60%, saving you around £770 a year.
If you then reinvested that money every year for 30 years and received 5% returns on average, you would have £51,157 – based on only £23,100 of contributions.
A financial planner can help you reinvest your healthy savings and grow your wealth
Taken together, the above lifestyle changes could improve your overall health and significantly boost your finances.
To reap the potential financial benefits, it’s important to reinvest your savings wisely, which is where we can help.
While we may not be able to offer much advice on how to quit smoking or cut down on alcohol, we can offer guidance on how to make the most of the money you save from these lifestyle changes.
To speak to a financial planner, get in touch.
Email admin@stonegatewealth.co.uk or call us on 01785 876222.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
Production