Financial Health Affects Physical Health: Pay Attention to Both Prescriptions By Bernice Wilson, Resource Management Specialist

Researchers O'Neill, & Ensle suggest health and personal finances are closely associated with happiness. Research data further indicates that four factors strongly predict happiness and well-being in most cultures: health, economic status, employment, and family relationships. People are happier when they are healthy, employed, married or in a long-term committed relationship, and financially secure (Whetmore). Most often we pay close attention to our medical health, i.e., we make doctor appointments sometimes a year in advance to guarantee a consistency in physical health, thus keeping our medical records current. Now what about your financial health? Are your financial records current? How often do you set aside some time to check on your financial affairs? I truly believe the adage your health determines your wealth. Just as you put forth the effort to guarantee that your physical health is fine, why not expend the same time and effort to guarantee your financial health is leading you toward financial security.

Here is how you can go about checking to see if your financial health is progressing toward financial security or financial well-being and quality of life. First, determine your values and attitudes about money. Values are principles that guide behavior. What guiding principles do you have about money that directs your decisions about money? How you use time and how you spend money reflect your values. Attitudes are concepts that express feelings in regard to some ideas, persons, objects, events, situations, or relationships. What is your attitude about money? Some value decisions are:

• Family: What type of lifestyle would satisfy you most?
• Work: What do you like about your job?
• Future financial security: Are you comfortable buying now and paying later? How important is saving?

Next, determine your goals? Goals are end results that require action, a statement of what you want the future to look like. After determining your family values, set some goals for right now or this month. Set some goals for six months to a year. Then try setting goals for five to ten years from now. The more specific you are about your immediate and long-range goals, the better.

Target dates should also be set to show achievement. In other words, for each goal list the date entered, dollar amount needed to reach goal, target date, and the date the goal was attained. Goals that are quantified and broken down into categories are easier to attain.

People often become discouraged in the goal-setting phase of budgeting because they quickly realize they cannot achieve all of their goals immediately. Try these tips:

• Attack the most important financial goals first
• Depend on your own values and financial plans
• Do not be lured into following everyone else's approach

Money is a problem for many families. Poor communication about money often is the root of financial problems. When family members have different values and attitudes toward spending and saving money, or when families set unrealistic goals, conflict may occur. When families do not "talk things out," even the most workable spending plan may fail. Talking about money is not always easy, but it is important. Generally, open communication about family finances result in better decisions.

"A study published by the American Psychology Association indicates that the number one source of stress for 73 percent of Americans was money," reported Oleson. Money problems often cause this stress. Some of the money problems resulting into stressors are:

Value conflicts

• To save or spend, to buy life insurance or a new car, to pay college tuition or stereo equipment ­ these choices reflect values and potential conflicts. No two people have exactly the same values, but when family members have sharp difference in values, they need to negotiate.

Unrealistic goals

• Striving immediately for the same quality house, furnishings, and car that took your parents 30 years to earn is a common problem. Insisting on unrealistic standards often results in frustration and at worst, too much debt

Emotional uses of money

• Do you try to buy status, friendship, or love?
• Do you try to control or punish others by withholding money?
• Do you overspend to get back at another family member?
• Try to recognize and prevent emotional use of money

Lack of planning

• Impulse buys with credit cards
• Daily trips to the store
• Inadequate savings indicate a lack of financial planning

The money problems listed in this article can lead to stressful situations that can deteriorate one's health and lead to unwanted medical expenses. Healthy money habits can lead to a longer life (O'Neill & Ensle, en stated, if you practice healthy habits and live a long life, you'll probably need a lot of money to maintain your lifestyle in retirement. Healthy habits are also likely to improve your quality of life and may result in lower medical bills. In addition, you may be able to work longer, if desired, so retirement can begin later and assets will last longer (nd).

References

Fletcher, Cynthia N., Sternwels, Laura & Sailer, Mary K. (September 2004). Money mechanics. Iowa State University Extension Service, PM 1453.

Garman, E. Thomas and Forgue, Raymond E. (2006). Personal finance. (8th ed.). New York, NY: Houghton Mifflin Company.

Oleson, Mark. (March 9, 2007). OFS financial tip of the week. Iowa State University Extension Service.

O'Neill, Barbara & Ensle, Karen. (2005). Health and wealth connections. Rutgers Cooperative Extension. Retrieved August 9, 2007.

Turner, Josephine. (1999). Money management makes cents. Alabama Cooperative Extension System, Publication HE-368.

Wetmore, Don. (2004). Professional Speaker Productivity. Retrieved August 9, 2007.

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