World Health Day: How Smart Money Moves Can Boost Your Well-Being

Posted on Thursday, April 3rd, 2025 | By IndusInd Bank

Have you ever felt your heart racing when checking your bank balance towards the end of the month? Or lost sleep over an unexpected medical bill? You’re not alone. Financial stress quietly chips away at your health, affecting millions worldwide.

On World Health Day, while everyone talks about fitness and healthy eating, let’s chat about something just as important—financial wellness. Because let’s face it, no amount of yoga or green smoothies can truly help if money worries keep you up at night. A stable financial life doesn’t just secure your future; it lowers stress, gives you better healthcare access, and ultimately, leads to a healthier life.

So, let’s dive into how money and health are intertwined, how smart financial planning can safeguard your well-being, and some practical ways to balance financial stability with a great quality of life.

How Financial Stability Impacts Your Physical and Mental Health?

Money problems don’t just stress you out—they can literally make you sick. Chronic financial stress is linked to anxiety, depression, high blood pressure, and even heart disease. It also forces people to make tough choices: skipping medical check-ups, delaying health insurance, or relying on unhealthy food just to make ends meet.

The best part? Just like hitting the gym for physical fitness, financial wellness is something you can work on—one smart decision at a time.

Smart Financial Planning for a Healthy Future

Most people think of financial planning as just building wealth. But real financial planning ensures money never stands in the way of good health. Let’s break it down.

1. Open 3 Different Savings Accounts for Savings, Expenses and Investments

One simple trick to managing your money better? Have three separate savings accounts. This helps keep your finances organised and aligns with the 50/30/20 rule—an easy formula for budgeting.

• 50% for Essentials (Expenses Account): A zero-balance savings account can be used to manage daily expenses like rent, groceries and utility bills.

• 30% for Savings & Wants: (Emergency Fund Account): A high-yield savings account or one with sweep-FD option is ideal for emergency savings. Once your emergency fund is fully stacked, you can use this for treating yourself—or better yet, route more into investments.

• 20% for Investments (Investment Account): A dedicated savings account for investments ensures you don’t accidentally spend money meant for growing your wealth. Check out IndusInd Bank’s Wealth portal for investing in mutual funds and stocks of your choice.

By keeping finances structured this way, you will save consistently, while covering all expenses and growing your wealth in a disciplined manner.

Also Read: 50/30/20 Rule of Budgeting: A Simple Formula for Smart Money Management

2. Build an Emergency Fund

Yes, we just mentioned it, but it’s worth repeating—having an emergency fund is non-negotiable. Life throws surprises, and medical emergencies are expensive. An emergency fund keeps you from dipping into savings or taking loans. The golden rule? Set aside at least six months’ worth of expenses.

3. Prioritise Health Insurance

Health insurance isn’t a luxury—it’s a necessity. Medical costs in India are rising, and one hospital bill can wipe out years of savings. Choose a plan that covers your needs, including pre-existing conditions and cashless hospitalisation.

Even if your employer provides health insurance, get your own policy because:

• You won’t always be employed, and the older you get, the pricier insurance becomes.
• Employer health insurance vanishes once you leave the job. If an emergency strikes when you’re between jobs, you’re on your own.

4. Plan for Long-Term Healthcare Needs

Healthcare expenses shoot up as you age. Instead of scrambling for funds later, start saving now. Whether it’s a dedicated health savings account or long-term insurance, planning ahead makes all the difference.

5. Invest in Preventive Healthcare

Skipping routine health check-ups to save money? Bad idea. Regular screenings, a good diet, and exercise can prevent chronic illnesses—saving you from huge medical bills down the road. Prioritising health is an investment, not an expense.

Key Financial Tools to Secure Your Health and Wealth

While we’re not here to offer investment advice, knowing the right financial tools can make a difference.

Tips to Balance Financial Growth and Healthy Living

Striking a balance between wealth and health isn’t rocket science. Here are some practical hacks:

• Create a health-focused budget: Allocate funds for fitness, healthcare, and nutritious food.
• Cut unnecessary expenses: Identify wasteful spending and redirect it to health-related investments.
• Build passive income streams: Freelancing, rental income, or monetising hobbies can add financial security.
• Prioritise mental health: Financial stress is real. Meditation, mindfulness, or even a simple walk can help.
• Make lifestyle changes that save money: Home-cooked meals, walking instead of taking cabs for short distances, and home workouts all save money and boost health.

Wrapping Up!

World Health Day serves as a reminder that health is wealth, but the reverse is also true. Managing your finances wisely can reduce stress, provide access to better healthcare and support a healthier lifestyle. By planning ahead, making informed financial decisions and prioritising well-being, you can build a future where both your health and wealth are secure. This year, take a step towards a financially and physically healthier life. Start small, stay consistent and remember, investing in your health is the best financial decision you will ever make.