Is there a link between the health of your body and the health of your finances? Studies seem to indicate yes: your financial condition can have impacts­—good and bad—on your physical condition. 

According to a July 2007 article in The Washington Post, the stress of money worries can cause ailments ranging from high blood pressure to colitis to eating disorders. People who are anxious about money don’t sleep enough (or sleep too much), don’t eat enough (or eat too much or eat all the wrong things) and may get more colds and headaches more frequently than their less-stressed colleagues.

But there’s good news: the damage of money stress appears to be largely temporary, and many of the physical problems can be alleviated when the stress is reduced.

Clearly, improving your fiscal health is an important step in improving your physical health. Here are some steps you can take:

1. Take stock of where you are. This first step is often the hardest, but it may be the most important. What are your sources of income? How much debt do you have? If you want to make good decisions about your finances, you need these numbers.
2. Create a budget. You’ve heard this a million times because it’s so true and so important. Know where your money is going every month—the truth may surprise you. Once you realize how much you’re spending on discretionary purchases (coffee, meals out, parking), you can find places to cut back and save.
3. Start paying down debt. There are many schools of thought on how to go about this, but one possible way is to dedicate more resources to your highest-interest debt first (while still paying on all). And commit now to never being late on a payment again. The fees and the hit to your credit rating can and do cause greater expenses now and in the future.
4. Start an emergency fund. Have the cash on hand to deal with a crisis rather than relying on high-interest credit cards.
5. Get help if you need it. There are experts who can help you with financial problems, just make sure you find a legitimate source of assistance and not a scammer. One terrific and free resource is BALANCE—a confidential financial counseling service. Salal partners with BALANCE to provide our members with free financial assistance. You can reach BALANCE from our home-page, salalcu.org. Click the  “Financial Counseling” link under “Helpful Tools.”

Filed under: Money management tips by admin