There’s no doubt good mental health and good financial health are much more interconnected than people like to admit.
The way people respond to financial stress is linked to their well-being.
Financial pressures can create psychological distress, which affects peoples coping mechanisms such as confidence, feeling in control of their life and even their self-esteem.
At Sapience Financial, our team has always understood peoples financial lives and mindsets are connected to their confidence levels, and in turn to their good mental health.
Mental Good Health
Mental illness is now the leading cause of long-term sickness absences among Australian workers costing our Australian economy over $12 billion per year in lost productivity - Blackdog Institute Research
Relational Good Health
You don't have to be a financial expert to realise the vast majority of relational problems have their roots in financial problems.
- Financial stressors are responsible for just under 80% of all relational conflicts.
A Relationships Australia study cites;
- 7 out of 10 couples report money causes tension in their relationships.
- Disagreement over finances is a stronger predictor of divorce than other commonly cited causes of marital disagreements.
A Harvard study published in the August 2013 edition of Science reports;
- Significant financial stress can even trigger diminished cognitive performance in our cognitive decision-making abilities equal to a loss of 13 points of IQ.
- 'When we think about people who are financially stressed, we think they are short on money, but the truth is they are also short on cognitive capacity' - Sendhil Mullainathan, study co-author.