A new Financial Wellness Report from TopCashback.co.uk has revealed that the vast majority (96 per cent) of people in the UK have experienced stress and worries about their finances.
Despite over half (53 per cent) of consumers seeing good financial wellbeing as unachievable, nine in 10 (90 per cent) think it is important with eight in 10 (82 per cent) recognising financial wellbeing as being equally important as healthy eating and exercise.
Poor financial health not only creates stress and worry for consumers but can also have a further negative impact on health. The report reveals more than half (54 per cent) of people say their financial wellbeing has affected their mental or physical health in the past and 35 per cent say regularly worrying about money influences their psychical or mental health.
Nearly a fifth (17 per cent) of people have no plan in place to become financially well with half of those (53 per cent) feeling trapped by not having enough money to pull themselves into a financially well state. It doesn’t help that the journey to financial wellness feels like a long slog, with nearly half (48 per cent) estimating it will take between three and 10 years to reach a content financial position.
When presented with a definition* of financial wellness, four in 10 (44 per cent) did not consider themselves financially well.
For seven in 10 (67 per cent) people a key element of being financial well is being in control of their finances and having enough money to cover their monthly outgoings and standard of living they choose. For 54 per cent, it’s about being able to save for their future.
Lifting the lid on consumers’ money worries, the report reveals 57 per cent of those who do not see themselves as financially well do not feel in control of their finances. Nearly a third (32 per cent) either spend more than they earn each month or are not sure if they spend within their means and a huge 81 per cent of people would not be able to support themselves for more than three months if they lost their source of income.
Adam Bullock, UK Director of TopCashback.co.uk said “Our report shows there’s a direct link between feeling in control of your finances and good financial wellbeing. A lot of people can feel out of their depth when trying to build their financial wellness, especially if they’re struggling with a lot of debt, don’t know where to start or feel the road is too long. But there are small stepping stones that could really help. From daily budgeting to savvy spending, little by little consumers can regain some control.”
In contrast, of those who do consider themselves financially well, nine in 10 (91 per cent) feel in control of their finances, 70 per cent spend less than they earn each month and a third (33 per cent) would be able to survive a year or more on their savings cushion.