A Guide to Financial Wellness
We hope that you are well. During this unprecedented time, our mental health collectively, as a global community, has been tested and challenged. We want to be a source that is encouraging you to keep pressing on, regardless of what the current circumstances may be. As part of the support we have been offering, we have our monthly online workshops on topics that are relevant to our everyday lives, particularly now as we continue to adjust to this new way of living.
We want to continue to support you in a number of ways, tackling areas that are prone to be tricky to handle from time to time. A common one being our personal finances.
We are aware of the significant impact poor financial management can have on an individual’s mental health and well-being. As this is a common difficulty amongst our community, we had to dedicate our recent online workshop towards a solution-focused conversation. From understanding the root causes of our financial habits, to discussing practical ways to increase saving, investing and building credit scores.
When discussing well-being, many of us think about self-care routines, managing stress, mindfulness, exercise, healthy eating- which are all key aspects of self-care, but rarely do we talk about money. Financial wellness is a component of overall well-being.
Please read on to find out what was learnt when we collaborated with the Financial Guru, Kia (@ikeeyah) to host our online Financial Wellness workshop on April 30th 2020.
What we learnt;
1. We learnt what financial wellness is
‘’Financial wellness involves the process of learning how to successfully manage financial expenses". Money plays a pivotal role in our lives and not having enough of it, impacts one’s health, as well as their productivity (University of California, 2013).
2. We became familiar with the concept ‘’financial relationships’’
The 4 financial relationships types;
1. Secure Attachment – safety and security
An individual with a secure attachment to money, feels more confident dealing with, and talking openly and honestly about their finances. Their mindset towards money is often "money comes, and money goes" and "I know my needs will be met". They have strong money boundaries and are able to stick to budgets. These individuals more likely to take informed risks and invest their money.
2. Anxious Attachment- high fear, anxiety, and insecurity
As the name suggests these individuals display a high level of worry during conversations about money, and this is the same when it comes to managing their personal finances. As a result, they tend to be jealous of others' financial successes rather than being inspired (scarcity mindset). Typically, their decisions with their finances is based on "if I have lost money, I will not get it back, and my needs will not be met".
3. Dismissive Avoidant- shut down when tension arises
The 'dismissive avoidant attachment types' are the first to change the subject when it comes to talking about money. They are the most likely to ignore financial problems, and are not great at managing money. It is common for these individuals to feel that "I don’t need money, because money doesn’t buy happiness" and "more money causes more problems", almost saying "I’ll abandon you before you abandon me". Therefore, they are less likely to pay for bills on time and more likely to spend money they do not have.
4. Fearful Avoidant- inconsistency – their greatest desire is also their biggest fear
Finally, individuals with fearful avoidant attachments to their finances usually feel uneasy and agitated about their personal finances. Typically, these individuals will ignore conversations about money because of their worries, but deep-down they desire to have confident conversations about money, similar to a "I hate that I love you" relationship. This is part of the reason they become clingy and stingy, so less likely to invest their money.
Although it would be ideal that each one of us would only have secure attachments, reality has it, that many of us don't. The experiences you received as a child, including your emotional and physical needs, developed your attachment style. You most likely had little to no control over what attachment style you were developing. However, you have the power now, in the present moment, to change that.
If you would like to complete an attachment style test and to learn more about your particular attachment style, click this link: https://www.scienceofpeople.com/attachment-styles/.
Below is an illustration showing the 'Ideas Board' we put together at the online Finance Workshop. This image seeks to provide you with learning points and helpful tips on key areas, such as, saving tips and apps, credit scores and resources from the government during this current climate.
Thanks for staying in touch with us here at Inside Out, whether you attended the online workshop, or just read about the session in this blog post, thank you. You are welcome to the Inside Out Family and if you would like to keep up to date with our upcoming workshops and events sign up here.
-Written by Jadi-Ann Bent (Inside Out UK Team)