Poor Financial Health Linked to Lower Quality of Life

August 11, 2020

As it turns out, your financial health contributes in a big, big way to your overall enjoyment and quality of life.

LendingClub’s new 2018 Financial Health Survey conducted in partnership with Harris Poll revealed some eye-opening results about the connection between Americans’ everyday financial woes and their physical and emotional well-being, their productivity at work and at home, and their relationships.

The key takeaways

Quite simply, the state of most Americans’ financial wellness is a real societal problem. Bad financial health negatively impacts the body and the mind. And people are isolating themselves due to debt.

Among the many findings, the study sheds light on some surprising, and not-so-surprising, facts:

Most people are unmotivated to improve their financial situation

Despite having plenty of time and skills, most lack motivation and find that just thinking about money or creating a budget is too much work and mentally draining. Get inspired with our 10 favorite ways to start saving.

Poor financial health is linked to poor physical health

Unfortunately, Americans reporting poor financial health are less likely to get routine checkups or regular exercise, and are more likely to have significant medical bills and suffer from chronic pain. Test your financial fitness with this quiz.

Credit cards are causing a lot of grief

A whopping 40 percent of Americans are never or rarely able to pay their credit cards in full each month. Those who carry balances are three times more likely to be unhappy in their personal lives. Feeling overwhelmed by debt? Get a paydown plan.

Most would rather discuss private marital issues than everyday financial decisions

Staying quiet about money out of shame is extremely common. But doing so means missing out on valuable advice, encouragement, and a sense of community. Want to feel more financially empowered? Watch Christy’s story.

And more…

Other conclusions from the study: Compared to those with good financial health, a majority of Americans are barely staying afloat, spending at or above their household income; have no consistent savings plan or have abandoned saving altogether; and, despite having relationships, don’t report having a lot of close friends and report a lack of a sense of belonging to a larger community.

Financial well-being is within your reach

If some or all of this feels familiar to you, rest assured there are ways to take charge of your life and improve your financial situation. At LendingClub we believe that with awareness comes hope. That means getting educated, having a plan, and building an uplifting community with a passion for responsibly-designed financial products and services, such as a personal loan that can help control debt and simplify your financial life.

Find out where you stand

We believe the power to change is in your hands. Which is why we’re developing new tools and resources to help you learn where you are on the path toward financial well-being.

It’s why we’re working to bring you financial health journey stories, like Greg’s story, that we hope will inspire anyone to get real about their financial goals and work together to make it happen.

And it’s why we’re building the #LCFinancialHealth community where you can share your financial health challenges or start a conversation about some of the life hacks you’ve adopted to get motivated around money.

Join the community

Finding your way to financial wellness and a brighter future is possible. Watch for more from us on this important topic. In the meantime, take a look at the survey results and methodology. Join the #LCFinancialHealth community on your favorite social channel and let us know what you think. And remember to be careful about oversharing any of your private financial information publicly.

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