How your finances could be impacting your health

ARTICLE

01 January 2025

4 min read

Let’s be clear, having lots of money does not make you happier. But knowing how to manage your finances in a way that reduces stress and empowers you to lead a healthy lifestyle—that can make a difference.

Multiple studies have proven a connection between welfare and financial wellbeing. A 2015 Australian study discovered a link between financial hardship and the risk of mental health problems over time¹. Similarly, a 2017 study found the inability to meet mortgage or rent payments was one of the largest drivers of psychological distress².

But even knowing this correlation, financial wellbeing can be a tricky topic to dissect.

What does financial wellbeing mean?

We all have our own version of ‘financial wellbeing’. But studies have found two themes most of us share:

A balance of needs and wants
Whether it’s having enough money to comfortably pay off your mortgage, or having enough disposable income to maintain a lifestyle you enjoy, it’s about balance.
A bright future
Financial wellbeing reflects both financial experiences today (including your current situation) and your expectations about the future⁴.

The link between financial wellbeing and physical health

Studies show that all other aspects of our lives—including our physical health—are much more manageable when our finances are in order⁵. Not only that, but forming good financial habits now can positively impact our physical health in the future.

5 tips for better financial wellbeing, from an AIA Financial Planner

Set a personal wellbeing goal. What’s something you’d do if you had ‘more’ money? Whether it’s a holiday, a gym membership, or even a cooking class, treat it like a mini savings goal.
Make budgeting a habit. Set aside an hour to review your spending every month. Split your spending into categories like utilities, insurance, entertainment, groceries, and what’s left over.
Start with interest. Plan to reduce your highest interest incurring debt first—personal loans, credit cards and investment loans have the highest interest rates.
Cut out what you won’t miss. Can you cancel a subscription, make lunch or coffee at home, or stop spontaneous online shopping? Small things really do add up.
Save, save, save. Set aside small weekly amounts towards your personal financial goal.

If in doubt, speak with an expert

If you don’t feel financially satisfied, or if you’re struggling with other financial problems, consider seeking advice from a professional.

Take it from Christina Pascal, Financial Planner at AIA. “I can’t tell you how many times I’ve seen the impacts of financial wellbeing on my clients’ health,” she explains. “They’ll often come to me with a financial problem that makes them feel stressed and overwhelmed. I make sure to discuss a variety of financial options and find the one that works best for them. It takes a huge weight off their shoulders and helps them achieve what they really want in life.”

At AIA, we offer affordable, reliable and straightforward advice on a variety of topics, including insurance, superannuation and wealth. We consider your personal and financial wellbeing goals, to help you make confident financial decisions, big or small. Our financial planners recognise that everyone’s circumstances are unique and provide tailored advice that aims to educate and guide you towards a healthier, longer, better life.

Book a complimentary consultation with an AIA financial planner

It’s never too late to take charge of your financial wellbeing, and it shouldn’t cost the earth. If you’ve ever wanted reliable financial advice from a professional, now’s your chance. Your first meeting with an AIA financial planner is free, no strings attached.

Don’t expect any jargon or convoluted advice – we provide detailed and personalised financial guidance however you want it. Whether it’s over the phone, video call or face-to-face, you can easily take the steps to improve your financial situation at any time in your life.

To book your free consultation, visit AIA's financial wellbeing website here for more information.

Footnotes

¹ https://pubmed.ncbi.nlm.nih.gov/25683473/
^2. https://www.researchgate.net/publication/
^3. https://www.aia.com.au/content/dam/au-wise/en/docs/reports/financial-wellbeing-the-missing-piece-of-the-wellbeing-puzzle.pdf
^4.https://apis.pe/insight/the-convergence-of-financial-and-physical-wellness-a-new-paradigm/

Staff Writer

Staff writers come from a range of backgrounds including health, wellbeing, music, tech, culture and the arts. They spend their time researching the latest data and trends in the health market to deliver up-to-date information, helping everyday Australians live healthier lives. This is general information only and is not intended as medical, health, nutritional or other advice. You should obtain professional advice from a medical or health practitioner in relation to your own personal circumstances.

Disclaimer:
Copyright © 2025 AIA Australia Limited (ABN 79 004 837 861 AFSL 230043). This is general information only, without taking into account factors like the objectives, financial situation, needs or personal circumstances of any individual and is not intended to be financial, legal, tax, medical, nutritional, health, fitness or other advice. The source information of the articles is current as of the date of publication and may be subject to change. While the information contained herein is believed to be accurate, AIA Australia expressly disclaims any and all liability for representations or warranties, expressed or implied, contained in, or for omissions from, the information.

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