Money can’t buy you happiness but it’s good to be financially fit

As the saying goes, money can’t buy happiness – but it can certainly have a negative impact on our wellbeing. 

Three quarters of UK adults (74%) said their mental health has worsened due to the ongoing cost-of-living crisis; that’s an increase of one third since 2022.

While 25 to 44-year-olds were found to be the group hit hardest by mental health challenges due to rising costs.  

But all is not lost. By taking steps to financial stability, it can improve, not just our mental happiness, but physical wellbeing too. 

So, in an ever-challenging economic environment, what are some of the ways to meet your financial goals? 

Here are four things you can do to inch closer to reaching those far-off financial goals over the long-term.

Give yourself a financial MOT

Looking at your bank balance on a weekly (or even monthly) basis, can be a real struggle. But it’s important to keep on top where you are spending your hard-earned cash.

Treating your financial MOTs can be seen as an act of “self-care”, according to Prema Sohun, Vitality’s consumer finance expert.

“Having a financial MOT is a great way to dedicate time and space for you to check in on your finances,” she says.

“Try referring to this time as ‘money dates’, allocating time monthly and see it as an act of self-care.” By doing this, the task might not seem so daunting...   

“It’s important to acknowledge how you feel about your finances too – ask yourself whether you’re enjoying your relationship with money and whether you need to make any changes to make sure you’re reaching your goals,” adds Sohun.

Here are five areas to consider for your next financial MOT:

If you need to speak to someone about the protection that’s right for you and your family, a financial adviser can help you put the right solutions in place. 

As well as life insurance, this might include an insurance plan which would cover your monthly income if you were unable to work due to illness or injury. Or pay a lump sum if you were to be diagnosed with serious illness which could affect your ability to work.

This can offer peace of mind and provide financial security should anything go wrong.

Mindful spending

Did you know that our ‘money scripts’ develop from a young age. These unconscious beliefs centred around our finances can determine our relationship with money in the future. 

Sentences from our childhood, such as: ‘Look after the pennies and the pounds will look after themselves’, or ‘It’s better to save than to spend’; these narratives influence financial decisions that steer your path toward achieving your goals.

“Living within your means is key“

Prema Sohun, Technical Marketing Manager, Vitality

Practicing mindful spending encourages conscious decisions and ample consideration before cash leaves our pockets. “Mindful spending happens when you have more of an understanding of what your ‘money story’ is and what your spending triggers are,” says Sohun.

A few ways we can integrate mindfulness into our wallets is by avoiding impulse spending and avoiding small, habitual expenses. 

Instead, we can look to prioritise what it is we’d like to spend our money on – but not forgetting to reward our self every now and then with something we’ve saved for.

Weekly budget

To set up a budget that’s going to actually work for you, first you need to identify your spending triggers and setting a clear budget to create better habits. 

“Living within your means is key, whether it's tracking expenses through budgeting apps or adhering to the 50/30/20 rule (50% of your income on bills/utilities, 30% on enjoyment and 20% into savings), adjusting it to fit your lifestyle,” says Sohun. 

Setting up auto-payments after you get paid, including investments, savings and bills, can help keep your money goals on track. To curb any impulse buying Prema advises “putting time between yourself and the purchase”. 

Consider unsubscribing from shopping emails and deleting delivery apps from your phone to minimise temptation.

Look to incorporate ‘no spend days’ to cut down expenses, ensuring your financial health and help prepare for unforeseen circumstances.

It’s important to remember, financial wellbeing varies for everyone – whether it’s breaking the paycheck-to-paycheck cycle or gaining the freedom that money can offer. 

Prema also suggests trying out budgeting apps or considering innovative investment apps that round up purchases.

Get thrifty

Embrace the trend of shopping second-hand from platforms like Vinted, Depop and By Rotation. 

These offer a spectrum of options from buying and renting to selling items, and better for the environment.

Similarly, apps like Olio and Too Good To Go give access to discarded items, promoting resourcefulness and reducing waste. 

Exploring loyalty cards and offers is another great way to get discounts and ease cost.

“Consider side hustling through surveys, taking part in market research, freelancing your skills online, monetising a hobby or creating an online course,” concludes Sohun. 

What’s your safety net?

As well as taking control of what you earn and spend, being able to weather financial storms is also paramount to financial stability. 

And while we can’t always prepare for what life throws at us, there are ways to make sure that your income is protected should the unexpected happen. 

Without our ability to earn an income, it’s likely many of the things we take for granted will quickly fall away. This applies to paying rent, mortgages or even being able afford bills or food. 

Vitality’s Income Protection provides a regular stream of income if you’re unable to work; be it for sickness, mental ill-health, back problems or a long-term injury. 

This financial safety net could provide much-needed protection when you need it most – easing the pressure of money worries too – while also offering the health support you may need to get you back to work. 

Speak to a Vitality Adviser about Income Protection if you’d like to know more or get a quote today.

[1] Vitality data, 2023

[2] Vitality Life Claims and Benefits Report 2023

Related: ‘For many, it is priceless’: 5 questions about life insurance answered