Stress is something everyone experiences in different ways. Whether it’s pressure from work, conflicts in relationships, or concerns about your health, stress can have a considerable effect on your overall wellbeing.
Perhaps one of the more significant sources of stress, though, is money.
You don’t need to be in debt or facing financial hardship to experience it, which is a common misconception. Sometimes, even trying to plan out your financial future can result in anxiety.
For instance, you may wonder whether your pension savings will be enough to support your desired lifestyle in the next phase of your life, or if you’ve taken the necessary steps to provide for your loved ones through estate planning.
Fortunately, a financial planner could help to lift a weight from your mind and ease some of these concerns. April is Stress Awareness Month too, making this the perfect time to assess how professional advice may be able to alleviate some of your financial anxiety.
Continue reading to discover why this is, and how working with us could provide a much-needed boost to your mental and financial wellbeing.
There is a clear link between your financial circumstances and mental wellbeing
It might come as no surprise that money worries can directly affect your overall wellbeing. In fact, research from the Money and Pensions Service states that those struggling with their mental health are more likely to face financial difficulties, while financial struggles can, in turn, worsen a person’s mental wellbeing.
It seems as though your financial situation and mental wellbeing all act in tandem. When one aspect is thrown out of balance, the other can also be affected.
In other words, stressing over money can create a never-ending cycle. For example, the mental health charity, Mind, highlights that if you’re already feeling low or depressed, you may lack the motivation needed to manage your finances.
Indeed, if you feel your mental health isn’t at its best, you may end up:
- Avoiding looking at your bank statements
- Delaying making important financial decisions
- Engaging in impulsive spending as a form of “retail therapy”.
And, financial stress could contribute to:
- Sleep issues, resulting in a lack of focus and irritability
- A weakened immune system, making you more susceptible to infection and illness
- Anxiety or low mood.
Working with a financial planner could help
If you’re looking for support, working with a financial planner could help you break free from this vicious cycle. This is partly due to the fact that planners have your best interests at heart and wish to help you succeed in achieving your goals.
In fact, a study from Royal London found that 66% of financial advisers believed their main role throughout the cost of living crisis was to provide reassurance and peace of mind to their clients.
This may have contributed to the fact that only 21% of advisers stated that their clients were anxious about living costs, compared to 46% of the wider population.
Further research from Royal London revealed some of the more tangible emotional benefits of working with a planner.
Indeed, clients who worked with a financial planner felt more financially secure, more in control of their money, and less anxious about their household finances.
4 ways a planner can help improve your mental wellbeing and alleviate financial stress
Now that you understand the benefits of financial planning for your mental wellbeing, read on to discover how we can help you reduce financial stress.
1. A financial planner may help you gain control with budgeting basics
A financial planner will help you take stock of your situation and create a practical budget that aligns with your goals.
One efficient strategy we may recommend is “paying your future self first”.
This involves contributing regular amounts to your savings as soon as you’re paid, rather than at the end of the month. Over time, this might help you build health savings habits and ensure that your financial goals take priority.
A well-structured budget could also help you avoid impulsive spending and reduce financial stress by giving you a clear plan for managing your wealth.
2. A planner can give you an understanding of how much you can save and where to put it
Once a planner has assessed your financial situation, you might be surprised to learn how much you can actually afford to save.
Indeed, we may help you identify unnecessary expenses – such as unused subscriptions or useless direct debits – which can free up more money to contribute to your pension or investment accounts.
Moreover, a planner can guide you on where to save your money to ensure it’s working as hard as it should be. Whether that’s in a pension or an Individual Savings Account (ISA), we can recommend solutions tailored to your goals and risk profile.
3. We can implement tax-efficient strategies to help protect your wealth
Managing your wealth extends beyond just saving, as it also involves ensuring that your wealth is protected from unnecessary tax.
A planner could help you take advantage of several tax-efficient strategies, such as making the most of your pension contributions and using ISAs to shield your wealth from Income Tax, Capital Gains Tax, and Dividend Tax.
For example, we may recommend using your pension to benefit from tax relief on contributions up to the Annual Allowance each year, which stands at £60,000 of your earnings in 2025/26. This includes third party contributions, as well as tax relief within the pension.
This is one of many strategies that could allow you to grow your wealth while minimising your tax liability, giving you more confidence in your financial future.
4. We’ll continue to build a relationship with you over the years
Financial planning isn’t just a short-term fix – it’s an ongoing process that remains steadfast throughout the years.
Indeed, a planner will continue to work with you through your life, helping you to adjust your plan as your circumstances change. Whether you’re earning, retired, or experiencing difficult circumstances like bereavement or divorce, your planner will be there to support you.
As the relationship develops, we will also gain a deeper understanding of your financial needs and goals through regular reviews.
Ultimately, having a trusted financial planner by your side could help you navigate some of life’s challenges, all while reducing the stress of managing your wealth alone.
Get in touch
If you would like to access bespoke support this Stress Awareness Month, then we’d be more than happy to help you.
Email contactme@kbafinancial.com or call us on 01942 889 883 to find out more.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
HM Revenue and Customs’ practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.
The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.
Past performance is not a guide to future performance and should not be relied upon.
An ISA is a medium to long term investment, which aims to increase the value of the money you invest for growth or income or both. The value of your investments and any income from them can fall as well as rise. You may not get back the amount you invested.
The Financial Conduct Authority does not regulate tax planning.
Approved by The Openwork Partnership on 28/02/2025.