Healthy finances for a healthier life

What happens when you think about money? If you tense up and your heart skips a beat, you’re not alone. More than four in 10 Canadians (42%) say money is their greatest stress) (opens in a new tab).  

And, while some stress is fine, chronic stress (opens in a new tab) has been linked to:

• Heart disease
• Stroke
• High blood pressure
• Immune complications
• Unhealthy habits such as smoking and excessive drinking

So the stress we feel about money—day after day and year after year—has the potential to undermine our physical health.

On the other hand, healthy finances can lead to a healthier life. In a recent survey, people who said they are financially prepared were:

• Almost 24% more likely to exercise one or more hours a week
• Almost 25% more likely to say they are “very healthy”

Three things you can do to improve your financial preparedness and health are:

1. Have a plan

You can improve more than your finances with a financial plan that charts the course from where you are to where you want to be. You can also enjoy:

• Better financial well-being
  
• Better emotional well-being
• More overall contentment
• less stress the more prepared you are

2. Manage debt

If you’re concerned about your household debt, consider that Canadians are carrying a grand total debt of $1.933 trillion (opens in a new tab) in mortgages, loans, lines of credit and credit card balances. And it’s important to know research links high levels of debt to depression and higher blood pressure (opens in a new tab). The good news is that you can become debt-free sooner with a debt management plan you create with your financial advisor.

3. Save for the future

Have you saved enough for retirement? About 60% of Canadians are worried they haven’t (opens in a new tab).To boost your retirement savings:

• Make regular contributions—every week or every month
• Get tax-deferred growth in an registered retirement savings plan (opens in a new tab) (RRSP)
• Get tax-free growth in a tax-free savings account (TFSA)
• Diversify your portfolio of investments

Healthy finances do lead to a healthier life

Taking steps towards better financial preparedness can help you feel more in control and relieve stress. And, as you start making progress towards your goals, you’ll have the satisfaction of knowing you’re minimizing health risks.

To help you manage debt and save, you can start your financial plan with a financial advisor. If you don’t already have one, choose an advisor near you now (opens in a new tab).

Read more on this topic:

• A national survey conducted by Leger on behalf of the Financial Planning Standards Council (FPSC) (PDF) (opens in a new tab)
• Statistics Canada – Perceived Life Stress 2014 (opens in a new tab)
• Manulife / Ipsos Reid Health and Wealth Wellness Study 2014
• CBC News - Debt-to-income ratio ticks down to $1.65 for every dollar Canadians earn (opens in a new tab)
• CBC News - Debt stress affects health, fuels depression (opens in a new tab)
• “Majority of Canadians Feel They Can't Afford to Retire.” Conference Board of Canada, 24 Dec. 2018. (opens in a new tab)
• Canadian Mental Health Association – Stress (opens in a new tab)