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Have you connected the dots between your mental health and financial wellbeing? Matt Falla and Ian Leverington of Evelyn Partners International told Meg Winton about the link
CONVERSATIONS about mental health have been on the up in recent years, and what we have learnt is that it has never been more important to make sure we look after it.
Our mental health can be impacted by a number of things, but have you considered the effect your financial wellbeing could be having on you?
Matt Falla and Ian Leverington of Evelyn Partners International specialise in investment management. Matt is particularly focused on mental health and the link between the health of your body and mind, and the health of your financials.
Healthy financial wellbeing is, to most people, feeling in control, secure, stable and free when looking at their finances.
“Anybody should feel comfortable and not go to sleep at night worrying about their money,” Ian said.
This is why Matt said he believed that mental health and financial wellbeing were “intrinsically linked”.
“Financial stress can be a significant contributor to poor mental health, from keeping people awake at night worrying, to them wondering where the next pay pack is going to come from,” he said.
He added that good financial wellbeing was integral to feeling “hopeful for the future” and referenced his own experience with mental-health struggles as having provided an acute insight into that.
“When I didn’t feel I could work, despite having a very good job and, on paper, all of the trappings of a very nice life, it amazed me, and it still does, how much of my life was predicated on the basis that I’d still be earning money 12 months from now,” he reflected.
Prioritisation of financial wellbeing was different for everyone, Matt and Ian agreed.
“For individuals looking at where the next meal is going to come from, it’s a luxury to try to prioritise your financial wellbeing,” Matt shared.
“For those who can, it’s important to save for the unexpected and ensure you are making the right decisions with your money, for yourself, for your family.”
He added that saving for the unexpected, in particular, was important to prevent a financial burden that could add further strain to a difficult situation.
Ian offered a contrasting perspective on managing your finances, in that focusing too much on it could be a distraction.
“You earn money so that you can spend time with your family and enjoy your island and spare time,” he said.
“There’s always the risk that you’re trying to get too much money at the expense of your mental health and the mental health of your family as well.”
Matt said that maintaining good financial wellbeing was based on having a clear idea of what you do and don’t have, paired with a long-term view.
This was instead of acting on the “desire to have something now”, something he described as a “human characteristic”.
“Humans are irrational. We don’t make rational decisions,” he said.
“If we’re lucky enough, a vast number of us have got a savings account but also a credit card, which makes no sense whatsoever,” Matt said, laughing.
“One is costing you 20% and the other is earning you, at best, 5% but there’s an emotional comfort in that.”
When people do find themselves in financial trouble, Matt argued that there was a perception that there were no other solutions other than “earning more money”.
“Actually, there is support in the Island, especially for individuals who find themselves in poor financial health,” he said.
“It often just starts with getting everything out in the open.”
Lack of financial literacy was also a reason that someone could experience money struggles, Ian highlighted.
“Financial regulators in the UK are trying to make sure that people who aren’t directly involved in finance have a better understanding of how finance works,” he explained.
“A lack of understanding of how the financial system works can lead to a lot of stress, and certainly less money.”
Shame was often associated with financial trouble, and that could be heightened in a small community with a higher cost of living, such as Jersey, Matt pointed out.
“Through the last five years, the financial crisis, Brexit and various other things, interest rates have suddenly gone up,” he explained.
He added that this had resulted in disposable income decreasing “quite dramatically” for many Islanders, which might have prompted an unexpected lifestyle change.
“The niceties of life that they got used to might not be there any more, and the drive to keep up with that identity you’ve built for yourself, and that people know you for, can exacerbate the financial issues.”
Adapting to that new situation could impact your mental health also, he said.
“It takes a huge amount of strength and determination to admit that your situation is very different now, and say ‘I need to cut my cloth to get through this period to push on in the future’.”
If you’re not feeling particularly well mentally and financially, getting support can feel the equivalent to climbing Everest
Matt Falla
If you are worried about your financial wellbeing, there are lots of channels and resources that offer support.
“Whatever your worries are, they are always undoubtedly better shared than kept within you,” said Matt.
“There are some amazing organisations locally like Citizens’ Advice and the Community Savings Bank who can really help.”
Organisations and businesses with which you could run into financial trouble also aim to support individuals, rather than penalise them, Matt and Ian agreed.
“Banks and utility companies aren’t looking to either cut your supply off or throw you out of your home,” Matt said. “They will work with you to come up with a sustainable, manageable repayment plan.”
Ian added that the same went for other branches of the finance sector.
“Most people I’ve worked with over the years are always willing to help if a client needs to talk to somebody about their financial assets,” he said.
A financial adviser or investment manager should be a “person by your side” to talk you through any issues, he said.
“Nowadays, there’s a broader network of support from the finance sector. It understands that to be considered a good business going forward, that should be part of your service.”
Seeking help could be a challenge, Matt acknowledged, but it was a necessary step to tackle struggles and look after your financial wellbeing.
“So often, people will stick their heads in the sand and hope it goes away, but it doesn’t.
“We have to appreciate that if you’re not feeling particularly well mentally and financially, getting support can feel the equivalent to climbing Everest,” he said.
Help could begin through a conversation, Matt shared.
“Nothing is sorted by avoidance.”
Hear more
To listen to the full episode of the Money Talks podcast, scan the QR code.
