Crafting Your Personal Definition of Financial Wellness

October 5, 2023Financial Tips

Financial wellness is a personal and relative concept that varies from person to person. It's inherently personal and influenced by a myriad of factors, including:

Life Stage and Goals
Income Level
Family Situation
Risk Tolerance
Values and Lifestyle Choices
Past Financial Choices and Consequences

While financial wellness is unique to each individual, there are universal steps that can guide anyone on their journey to economic well-being. These include:

Self-Assessment

Begin by assessing your current financial situation to serve as the foundation for your improvement plan. Review where you currently stand with your concrete financial needs, such as earning enough to pay your bills, building an emergency fund, and saving for long-term goals such as retirement. Also, review your feelings and thoughts about money and whether they are helping you reach or hindering your financial goals.

Goal Setting

Create clear, achievable short-term and long-term goals that provide direction and motivation. Reflect on what truly matters to you and use money to support those values. This might involve spending on experiences, supporting causes you believe in, or investing in personal growth.

Financial Education

To make informed decisions, stay knowledgeable about personal finance topics, investment strategies, and economic trends. Consider taking a financial class, listening to finance podcasts, or joining a community focused on improving financial wellness.

Building a Positive Relationship with Money

Be aware of your thoughts and feelings about money and how they may hinder reaching your goals. Recognize that money is a means to an end – a tool that can help you achieve your goals and improve your quality of life.

Professional Guidance

You can receive personalized advice based on your unique situation by consulting with financial advisors, accountants, or planners. These professionals can help you stay accountable for your financial decisions and provide tools to reach your goals.

Monitor Your Progress

Developing good financial habits takes time and discipline. Regularly review your financial goals and track your progress. Adjust your plan as needed to stay on track and address changing circumstances.