When we talk about health, normally what comes into mind is physical health. Although physical health is very important, it is but only one aspect of your total well-being. There are other dimensions of wellness that are equally important, one of which is your financial wellness. Numerous studies revealed that the main source of stress for many people around the world is money, or the lack thereof. In fact, the lack of money can lead to negative effects on the other areas of your life. For example, not being able to afford nutritious food or not being able to properly sleep at night. It also brings about anxiety on personal relationships especially when you can no longer provide for the family’s basic needs. Thus, to improve your financial wellness should always be part of your goals.
What is Financial Wellness?
Financial wellness refers to the state of your financial health and your relationship with money. Are you able to handle your money well? Do you have enough to meet your needs? Not having enough of it will have an adverse effect on your health.
Why is Financial Wellness Important?
Financial wellness is important not just for the individual per se but the community as well. Personally, to be financially well means less stress. A person on this state does not have to worry about meeting financial obligations. in addition, there is a wide array of options for the individual to enjoy life.
Financial wellness is also important for families. Children from these families have access not only to optimal nutrition but to good environment and education as well. Strong families are needed to build strong communities.
In the workplace, a happy, satisfied individual is a more productive employee. A survey conducted by the American Psychological Association indicated that money problem is the number one reason why employees are distracted from work. Employees under financial stress are generally unmotivated and has low productivity rate.
How to Achieve Financial Wellness?
To achieve financial wellness, you must first understand what stage are you in in your financial life right now. It also helps to compute your current net worth. Knowing your starting point will make it easier for you to make financial goals. Once you know what your goals are, you can now start your journey towards the improvement of your financial wellness. Just like in any aspect in life, do remember that success does not happen overnight. It takes time and continuous effort to reach your goals.
Success is the sum of all efforts – repeated day in and day out.
-Robert Collier
Launch Challenge
There is a single life rule as far as your financial life is concern that you should follow. It is so simple yet many people take it for granted. The rule is to spend less than you earn.
Follow this golden rule and soon you will be able to improve your overall financial wellness. This rule will help you eliminate debts. It will also help you start building your savings account. In the end, your stress level will definitely go down.
To be able to successfully do this, you need to have a clear idea on how much you are earning vis-a-vis how much you are spending. Thus, it is advisable that you begin to track your expenses on a daily basis. Remember that you can only make good financial decisions if you know where your money is going. It helps also to increase your financial literacy.
Good luck!
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