While not the most important thing in life, financial health is a common source of stress, anxiety and fear. The 2017 “Stress in America Survey” revealed that 62% of Americans reported that money was a significant source of stress in their lives. Financial stress is a prevalent issue with reaching implications. Poor financial health can lead to stress-related illness, decreased productivity at work, absenteeism, marital discord, substance abuse, depression and anxiety.
Financial wellness is more than just retirement preparedness. The ‘Consumer Financial Protection Bureau’ defines financial well-being as having control over day to day finances, being able to absorb a financial shock, being on track to achieve financial goals and having the freedom to make choices that enhance one’s quality and enjoyment of life. Financial behavior, (budgeting, saving and debt reduction), financial knowledge, financial attitude and financial status are all factors determining financial wellness. Establishing a strong financial foundation with minimal financial stresses are also key factors. Financially healthy individuals should be able to weather any economic challenge.
The firm PwC asked 1,600 US adults how they defined financial well-being. The vast majority said it had to do with freedom. According to this 2018 survey 21% said it meant being free from financial stress, another 21% said it meant not having to worry about unexpected expenses, another 21% said it meant being debt free and 18% felt that financial wellness meant being freedom to make choices.
Financial well-being enables people to better enjoy life in general – so carve out time to learn about it – the earlier the better as Einstein would attest. Financial security or the perception that you have enough money to do what you want and that you don’t routinely worry about money contributes greatly to general well-being.
Wealth is not necessarily a factor in achieving financial well-being. Research has shown that beyond a certain amount of modest wealth, money has little to do with happiness. Once our basic needs are satisfied wealth starts to feel ordinary or even inadequate.
Increase your financial well-being by these guiding principles:
- Live Within Your Means. Spend less than you earn. Practice contentment and cut down on mindless spending. Stay out of debt and use credit responsibly.
- Just because you can buy something doesn’t mean you should.
- Save for future spending. Get into the habit of saving.
- Only borrow what you can afford. Avoid spending for an outward show or status. Consider your loss to your long-range goals when you choose to spend now.
- Grow your money. Contribute the maximum amount you can to retirement plans, structure investments to gain tax advantages.
- Try to live off a set income and add to your investments avoid the trap of expenses rising to meet income.
- Protect what you have with insurance for yourself, your property, income and investments.
Resources
- Why many doctors live paycheck to paycheck – Cory Fawcett, MD, via KevinMD.com
- Managing your loans during and after residency – Adam D. Hill, MD, FAWM, via Council of Residency Directors
- Track your financial goals with these four measurements –
- The White Coat Investor
- Six traits of the financially prepared woman physician – via AMA Insurance
The Business Case for Investing in Physician Well-being
Shanafelt T, Goh J, Sinsky C. The Business Case for Investing in Physician Well-being. JAMA Intern Med. 2017;177(12):1826–1832. doi:10.1001/jamainternmed.2017.4340
Most of us will never truly understand departmental finances since that just is not a part of our jobs. Fortunately for us, a group led by Tait Shanafelt at Stanford continues to lead the way by shedding light on hospital and departmental to show us that there is truly a link between physician wellness and the bottom line.
Key take home points:
- Physician turnover can cost up to $1,000,000 per physician.
- Profit margins are razor thin in healthcare and decreased productivity as a result of burnout will cut into profits.
- Not surprisingly quality, safety and patient satisfaction are affected by physician burnout, these are metrics that the c-suite pays extremely close attention to – especially in environments with competition.
Once you’ve discussed this article at your journal club, design some projects using metrics discussed that your leaders care to make your impact.
This is truly a landmark article, so for those of you leading local your wellness committees consider using financial or quality metrics as your leverage as you design strategies to influence your leaders.
Wellness Wednesday is provided as a resource for residents and fellows at Cooper University Health Care. For more information related Resident Wellness, click here.
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