How life events affect financial wellbeing| North Loop Official Blog
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09 Dec 2020

How life events affect financial wellbeing

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In simple words, wellbeing is one’s ability to feel good and function effectively. A lot of factors play a role in one’s well-being, and research has shown that people with high levels of well-being are more likely to perform well at work, are more sociable, and are extremely content at work.

There are a wide variety of factors that contribute to one’s well-being such as fulfilling financial obligations, ample exercise, starting a new job or promotions, etc. A lot of productivity at work, for example too, can be attributed to the said factors and it can be quite surprising how all these factors are interconnected. One is also likely to be loyal, committed, and motivated at work when they receive a promotion, have a suitable atmosphere at work, and a motivational boss.

One is likely to undergo a lot of stress and may underperform due to financial predicaments, lack of exercise, certain family problems, or due to some friction with their teammates or with the lead.

Five major types of wellbeing-

1. Physical Well Being

2. Emotional Well Being

3.Workplace Well Being

4. Societal Well Being

5. Social Well Being

How to improve wellbeing?

In order to increase your well being, one would have to build a lot of skills. Identification and figuring out how to build skills where you lack would be key to improving your well being. As per research, one of the best ways to improve one’s overall wellbeing is to start exercising regularly and rest well. This part is sort of like recharging yourself and can play a significant role in your overall well being.

Exercise can not only improve your eating habits but can also improve your quality of sleep and reduce stress, directly impacting your quality of life. More exercise can also improve your motivation to work, thus directly impacting your productivity at your workplace.

Exercising regularly and keeping fit can also improve your health and can significantly cut most potential health risks that can arrive in the future. Statistics convey that people who exercise regularly were generally happier and healthier.

Exercise as a commitment needs to start right away. Try to enroll yourself in some programs offered at work or try joining a club or a gym to maintain fitness and exercise consistently.

Once this step has been taken care of, the next step would be to improve financial health. It’s no surprise how proper financial planning goes a long way in improving one’s overall wellbeing. Having surplus cash reserves or savings to meet any financial emergencies would be the first step in a proper financial plan.
There are also certain life events that can affect your overall well-being significantly. Birth or adoption of a child, though a happy moment for all, can be a cause of deterioration of well-being due to the many responsibilities and financial obligations involved. All the potential financial expenses that follow too can cause a negative impact on one’s well being.

Another bittersweet life event would be when one purchases a house. Although the pride of ownership can be unparalleled, the financial obligations that would be required to meet in terms of repayment of home loans and other costs such as maintenance can cause a negative impact on one’s well being.

However, some events like receiving a promotion or getting married can cause an immeasurable amount of positive impact on one’s well being as events like these can lead to one being in a better financial position.

Debts too have a negative impact on one’s well being and are as impactful as exercising. People are at higher levels of well-being after paying off their debts than the ones who haven’t done so and this factor has resulted in reduced stress levels and increased happiness and satisfaction, research shows. It is also reported that people’s performance at work has also significantly increased when they’re completely debt-free.

Bottom line-

A proper exercise schedule and a proper financial planning component is extremely important for a proper stress-free life and higher levels of well being. Small changes can go a long way in improving your quality of life.

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This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended be advice. You must obtain professional advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from North Loop or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. All opinions expressed do not reflect the views of North Loop nor are endorsed by North Loop.