What is financial wellness?
We are all familiar with physical and mental wellness, but what about financial wellness? Maintaining financial wellness is just as important as maintaining other areas of our life.
In this article we’ll touch on understanding what financial wellness means, why it’s important and how you can help maintain it.
What is financial wellness?
Financial wellbeing can involve feeling secure and in control of your money. Other components can include: budgeting effectively and spending less than you’re earning so you can build a financial safety net.
Financial wellness describes your ability to manage your personal finances. When you’re financially ‘well’, you’re able to pay your bills, navigate financial change and avoid getting into significant debts.
Here are three areas to consider when evaluating your personal financial wellness:
- Are you able to manage your day-to-day and monthly finances? If you had a financial surprise, are you in the position to absorb the responsibility?
- Does your present financial situation allow you to enjoy life without significant worries about money?
- Are you able to build towards your long-term financial goals?
Why is financial wellness important?
Financial wellness means that you understand your current financial landscape, can make necessary adjustments and are planning for your financial future. This might seem overwhelming but practicing good financial wellness can help reduce stress and anxiety in the long run and help you to reach your financial goals.