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7 February 2024
The 2023 Money-Stress Tracker by Debt Busters reveals that 80% of women experience financial stress, and it is impacting their health. Dr Marion Borcherds, Senior Manager and Head of Wellbeing at AfroCentric, a Sanlam subsidiary, says financially-stressed people are twice as likely to report poor overall health and four times as likely to develop certain health conditions.
“It’s crucial that people understand and manage the symbiotic dance between their health and finances. Financial wellness is when you can meet money-related needs, feel secure about your financial future, and not stress about money. This state of financial health can dramatically improve your life and prevent hardships. With financial health, you can reach goals and pursue more opportunities, which improves your quality of life.”
Here, Dr Borcherds unpacks the interdependence of health and financial management.
AfroCentric conducted a financial wellbeing programme that sheds light on South Africans' challenges. A staggering 70% of participants reported that their salary does not cover monthly expenses. While a significant 94% contribute to retirement savings, a mere 8% have engaged with a financial adviser, highlighting a gap in expert financial guidance. Furthermore, the majority (65%) are burdened with short-term debt, underscoring the need for financial literacy and coaching in the workplace.
“Financial stress directly impacts mental and physical health as it causes significant hardship. This can lead to anxiety, depression, and even other problems such as relationship troubles and ill health. Debt and financial stress are often a precursor to poor mental health. This can lead people to spend even more on medical needs, a vicious cycle which compounds the financial stress.
Dr Borcherds provides several tips to ensure you're both healthy and managing your money well:
Given the uncertainties South Africans might face this year, Dr Borcherds encourages people to consider managing their money in a way that aligns with their health goals. “Speaking to a healthcare adviser will help individuals stay informed on the best medical schemes and possibly other options such as primary healthcare insurance.”
She adds that people should approach long-term financial planning with health considerations in mind, especially with the rising cost of healthcare. Budgeting, planning for taxes and retirement, building an emergency fund, and creating an estate plan are all vital elements of long-term financial management and are considerations a financial adviser can assist with.
Dr Borcherds emphasises the importance of financial planning and literacy in managing the symbiotic relationship between health and finance. “Workplace wellness programmes are well-positioned to assist South Africans with financial advice, financial coaching, and opening the discourse on financial matters. For example, XX Financial literacy does sit at the heart of employees taking charge of their financial health, and employers can help to remove the taboos around these conversations.”
The dance of health and finance in your life is a delicate balance that requires careful planning and management. By taking the necessary steps to ensure your physical and financial health, you can lead a more balanced and stress-free life in 2024.