Want better sleep and less stress? Try that

Leave behind those restless nights of tossing and turning.

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Key points

• The Northwestern Mutual 2022 Planning & Progress Study found that there is a direct link between financial planning and overall well-being.
• More than half of American adults are worried about their finances, but the number drops for those who consider themselves a disciplined financial planner or work with a financial planner.
• The survey found stark differences between age groups, with Gen X being the worst sleepers, and Millennials and Gen Z tied for the most anxious.

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Looking for ways to reduce your stress and sleep better? According to a recent study, those who are financially disciplined or who work with a financial advisor report higher levels of happiness and better sleep. Northwestern Mutual’s 2022 Planning and Progression Study found an interesting relationship between financial planning and overall well-being.

A majority of people worry about their finances

The survey found that more than half (54%) of American adults are somewhat or very anxious about their finances. The number rises dramatically for Gen Z and Millennials, with two in three (66%) worried about money.

The number drops, however, for those who consider themselves a disciplined financial planner (47%). Worried about not being able to exercise financial discipline or not having the skills to manage your own money? The percentage also dropped for people who worked with a financial planner (46%).

Their study also found that disciplined planners and people who work with a financial planner not only have less anxiety, but are happier and sleep better. As the data below shows, non-planners are about 20% less happy than planners, and people who work with a financial planner are 25% more likely to say they sleep well than those who don’t. have not.

Gen Xers are the worst sleepers

The survey revealed marked differences between age groups. Baby boomers have the highest level of happiness, sleep the best and are less anxious than others. Generation X (born between 1965 and 1980) is the worst sleeper. Millennials and Gen Z are tied for the most anxious, with two in three anxious about their finances.

How to improve your financial well-being

Whatever your financial situation, making small adjustments can make a big difference when it comes to your money. Here are four simple steps you can take to improve your financial well-being, which helps you sleep better at night.

1. Create a financial plan: A financial plan is a complete picture of your current net worth and budget, your financial goals, and how you plan to achieve those goals. A plan gives you greater clarity of where you are and what you need to do.
2. Pay off your debt: Debt is one of the main causes of stress and anxiety. Credit card interest rates have risen recently due to the Fed’s interest rate hike. This means paying off credit card debt should be a priority.
3. Created a emergency fund: Your emergency fund should contain three to six months of expenses. It may need to be more depending on your job. An emergency fund will help protect your finances against unforeseen events like job loss, medical issues, or car breakdowns.
4. Invest regularly: According to the largest survey of millionaires ever, the key to financial success and becoming a millionaire is through disciplined investing. Eight in 10 millionaires have invested in their workplace 401(k), 403(b) or equivalent company retirement plan. In addition to their company’s investment plans, three in four have also invested in their brokerage accounts, Roth IRA or a traditional IRA.

Following these steps can help you on the path to financial well-being and overall well-being. Being a disciplined financial planner or having the help of a financial planner can help alleviate anxiety and uncertainty. This, in turn, will contribute to happiness and sleep.