Better mental health for everyone is a mission we can surely all get behind. As the Mental Health Foundation writes, good mental health makes life easier because it helps us cope better with change, maintain good relationships and bounce back more quickly from life’s challenges.

Our mental health is affected by a mix of biological, physiological, and social influences, but one important contributor is money. This has perhaps become more stark for many during the cost of living crisis.

Financial stress could affect your sleep, relationships, and overall wellbeing. Indeed, the Money and Mental Health Institute reports that people who struggle with long-term financial difficulties are 5.5 times more likely to experience mental health problems. In contrast, having a clear financial plan can help boost mental health.

44% of people who see a planner felt able to cope with life’s shocks, compared to 32% who don’t have a planner.

As reported by the Chartered Institute for Securities and Investment (CISI), almost 2 in 5 of those who see a financial planner said their mental health and family life had benefited.

In light of this, read on to discover three comforting ways working with a financial planner may help improve your mental health.

1. A bespoke financial plan gives you peace of mind

Life won’t always go as planned and it’s those unexpected events that can threaten the life you’ve built. Losing your income, becoming too ill to support your family, or an unexpected expense could all impact your finances, which in turn could cause you significant emotional anguish.

Having a bespoke financial plan in place means you’ll have escape routes if something bad happens. This protects your mental health because you know you’ll still be in control of your situation, whatever happens. And this has been borne out in research. In a study, Royal London found that 44% of people who see a planner felt able to cope with life’s shocks – that’s compared to 32% who don’t see a planner.

In fact, Royal London’s study found that a financial plan can have a real psychological benefit. For example, advised respondents felt more financially secure and stable, and more confident about the future.

Benefits of advice for emotional wellbeing
Source: Royal London

2. Working with a financial planner gives you certainty

Humans have an innate fear of the unknown, and for good reason. This trait can be traced back to our evolutionary roots – at times of uncertainty, the wrong move could have been deadly, so our brains encourage caution to keep us safe.

However, feeling unsure about the future may cause you to “freeze in the headlights” and prevent you from effectively preparing for key events such as retirement, a career change, or the birth of children or grandchildren. Without a clear plan in place, you could feel uncertain and unprepared – a situation that could have a profound effect on your mental health.

A financial planner can provide clarity regarding important, long-term concerns, such as whether you will have enough money to retire.

If you already work with us, you’ll know an Amber River planner can “look into the future” using cashflow modelling. Using your income, investments, and expenditure, they’re able to model how your finances might look decades from now, how they would be impacted by a financial shock and how you can minimise any negative impact.

This gives you a clear picture of how much money you’ll need to achieve your future goals, without sacrificing your current lifestyle. With this knowledge, you’ll feel more certain about the future, reducing your anxiety and boosting your resilience along the way.

3. A relationship with a financial planner gives you confidence

Henry Ford once said: “Whether you think you can, or you think you can’t – you’re right”.

Confidence impacts how you view yourself and the wider world. It can help you achieve things you may have thought impossible and lift your self-worth.

But if you’ve had worrying experiences with money before, such as being the victim of a scam or running up “bad debt”, your financial confidence may not be at its best.

As Mind writes, these experiences could bring up negative emotions such as guilt, fear, shame and fatigue.

What’s more, as reported by the University of Dundee, there have long been connections between depression and low confidence. Conversely, having high levels of financial confidence could help you feel in control and make it easier to reach your goals.

There’s no agreed definition of financial confidence, but broadly, it’s built around three key concepts:

  • Self-efficacy: your ability to make effective financial decisions.
  • Self-assurance: how much you believe in yourself and your ability to achieve your goals.
  • Self-determination: the strength of your willpower and intention to take control of your finances.

Through advice, expert insights, and access to specialist tools, a financial planner can help you in all three areas. They will give you the knowledge you need to make informed, confident choices about your money.

With a tailored financial plan comes greater financial confidence. Helping you to build a better financial future for yourself and your family and improve your mental health along the way.

At Amber River, your wellbeing is our priority

An Amber River planner works alongside you to put you in control of your destiny and reduce any financial anxieties. We build meaningful relationships with our clients and our team works hard to cultivate qualities like empathy, warmth, compassion, and understanding.

Get in touch

To learn more about how our team can help you, call us on 0800 915 0000 or use our contact form to set up an initial appointment.

Financial Planning