Rules to live by in the Financial Aspect Of Personal Wellness:
- Rule #1 – Evaluate your current financial standings
- Rule #2 – Compare and contrast goals
- Rule #3 – Eliminate the drag
- Rule #4 – Be realistic
- Rule #5 – Dream big
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“What Is The Financial Aspect Of Personal Wellness?” is the eight and final installment of the 8 Aspects Of Personal Wellness Series.
Similar to the other 7 aspects of Personal Wellness, we tend to overlook the relationships of the sum total.
Often depicting our financial well-being as its own entity.
All the while refusing to acknowledge that one can affect the others.
For example, “what does my finances have to do with my mood?”
Quite simple, a man with money and problems is happier that a man with no money and problems.
The same applies to health, social, and spiritual well-being.
The ability to afford a better lifestyle relieves numerous pressures.
This article is going to explore the various facets of the financial aspect of Personal Wellness.
What Is The Financial Aspect Of Personal Wellness?
The financial aspect of Personal Wellness centers around our ability to manage our economic life.
According to Sense Of Purpose, “Financial wellness is a balance of the mental, spiritual and physical aspects of money.”
We are often burdened by some type of financial need.
More often that not, we have multiple responsibilities simultaneously.
In addition, we must maintain the means to take care of emergencies that tend to popup from time to time.
“Try to save something while your salary is small; it’s impossible to save after you begin to earn more.” Jack Benny
Having a plan that includes access to the information and tool necessary to make good financial decisions.
According to Samantha Rose, “financial wellness is feeling comfortable with where you are in the present, as well as feeling comfortable with where you might be in the future.”
Throughout our lives, we are constantly reaching for that level of financial security.
This a linchpin to making us whole.
Imagine taking a well-deserved vacation without worrying about the ‘pay-for’.
Relax, it is covered!
Nonetheless, finances can be measured in terms of levels of stress.
Everyday Health cites the CFPB report as saying “financial well-being describes a continuum — ranging from severe financial stress to being highly satisfied with one’s financial situation — not strictly aligned with income level.”
In some instances, one may feel financial secure while another may not feel secure enough.
Nonetheless, engaging our financial responsibilities and commit to healthy changes can cause us to feel better than to see improvements.
HOW DOES OUR SENSE OF PURPOSE AFFECT THE FINANCIAL ASPECT?
A 2016 study found that people with a purpose in their professional life tended to engage in more physical activity, their diets were better, they had better sleep, and even their dental hygiene was better.
It is noted that when we have a clear purpose and direction in life, we lead a happier and longer life.
Consequently, this purpose in life can translate into financial success.
The study also found that people with this clear sense of purpose in life were much more likely to make financial decisions that support longer-term goals.
Sense Of Purpose states that, “Sense of purpose is the motivation that drives you toward a satisfying future.”
We can live well and create a resilient financial future by understanding the importance of financial management.
This includes our ability to learn how to adequately manage our financial expenses successfully.
Moreover, learning how to be responsible and independent are fundamentals on maximizing our financial situation.
But not necessarily in that order!
Vanguard, a financial services provider, states that “financial wellness means having a strong enough foundation and a clear financial strategy to make setbacks more tolerable, and financial adversity and healthy risk-taking less daunting.”
That statement says it all.
If we could develop a sturdy foundation and have a plan to mitigate potential problems, we could achieve handily.
QUESTIONS TO ASK YOURSELF IF FEEL YOU ARE FINANCIALLY FIT
Most of us live from paycheck to paycheck, month to month.
It should not be that way, but it is.
Saying that the system has failed us is minimizing the true horror.
The working class is treated as if we are chattel for the wealthy and their corporations.
Even though, within that space some of us thrive.
How? Many people think that they are well off until tragedy strikes.
We lose it when an emergency occurs.
As a matter of fact, some of us live well beyond their means.
Nonetheless, we have to ask ourselves if we are really financially stable.
According to Deere Employees CU there are a series of questions we need to ask ourselves:
- Do you have a good budget?
- Is your emergency fund big enough?
- Are you protecting your credit?
- Do you have a long-term financial plan in place?
- How often do you review and re-evaluate your financial plan?
Seemingly, there are rules to the game.
Rules that many of us have never heard of.
- Rule #1 – Evaluate your current financial standing
- Rule #2 – Compare and contrast goals
- Rule #3 – Eliminate the drag
- Rule #4 – Be realistic
- Rule #5 – Dream big
Our refusal to live by common rules leaves us open and vulnerable to total collapse.
Actually, it stands to reason the younger we are the more we are prone to being reckless.
It is not all about wisdom and experience.
At times, it is simply about making a commitment to be financially secure.
MERSIN JUSIC: UNDERSTANDING THE ROLE OF THE FINANCIAL WELLNESS
Financial worries are one of the leading sources of stress. Unless one is financially stable, below or even check to check live is a nightmare.
Mersin Jusic points to physical and mental health benefits of financial wellness.
Jusic states that, “Financial strain and uncertainty about the future can cause stress, which can in turn cause a whole host of physical health problems.”
In other words, the ability to address unexpected healthcare costs is closely tied to preventative healthcare.
The ability to address unexpected healthcare costs is closely tied to preventative healthcare.
Hence, maintaining an emergency fund helps in the event of major health problems.
Likewise, developing a financial plan to reduce stress and worry can help maintain our mental health.
Maintaining a plan aids in avoiding financial anxiety; therefore, we are clear-headed enough to improve any dilemma.
According to the United Healthcare article Understanding Financial Well-being, “Nearly 72% of adults report feeling stressed about money at least some of the time and nearly 25% say they experience extreme stress about money.
Feeling in control financially is a dream for most of us.
All of us desire the ability to lessen the affect of a financial setback.
In addition, it is enjoyable to have the freedom to pick and chose what we do with our finances.
Nonetheless, avoiding financial grief is a never ending pursuit when you are not financial stable.
While the solution often resides in us, we rarely look inward.
Examples that cause grief:
- Loans against retirement savings
- Preventable medical issues
- Payday advances
- Unexplained absences from work
- Handling personal finances while at work
It is always advisable to seek professional guidance with finances.
Think about our credit score for a moment.
Does it play a role in our financial wellness?
Of course, it does!
Keeping an eye on our credit score, through all available credit bureaus, is essential.
“Financial fitness is not a pipe dream or a state of mind. It’s a reality if you are willing to pursue it and embrace it.” Will Robinson
Consequently, our credit score is considered our buying power that can supplement our financial wellness.
Seemingly, once we have amassed such financial security, borrowing is an option and not a requirement.
In addition, our credit score are relevant because it is how creditors assess risk.
The higher the credit rating and score are the lower perceived risk and the lower interest rates.
On the other hand, the lower the credit rating and score, are the perceived risk is higher and the interests rates will reflect that risk.
Example of FICO Rating and Score:
|740 – 799
|670 – 739
|580 – 669
WHAT CREDIT RATING AND SCORE ARE YOU?
Many, if not all, credit bureaus provide one free credit report per year.
It behooves us to take advantage of the opportunity to get one.
Learn the credit reporting rules and clean up any blemishes via the dispute process.
Challenge all inaccurate information, dispute any error, and follow up regularly.
It is part of our financial responsibility to maintain a fair rating and score.
Therefore, go fix it even if it is good.
Always strive to make it better.
Brooke Napiwocki adds seven additional questions in her article “Achieving financial wellness: 7 questions to ask.”
- How do I think and feel about money?
- What are the financial lessons and beliefs I learned early on about money?
- How have these experiences impacted my current relationship with money?
- What financial fears do I have?
- What financial behaviors am I proud of and what am I most ashamed of?
- What would I like to achieve financially?
- What areas would I like to learn more about in regard to my personal finances?
Napiwocki’s questions drill down into financial stability.
She guides us deep into our beliefs and knowledge about money.
Consequently, if we are made to face the seriousness of financial security, we can achieve greater results for our efforts.
WHAT ARE EXAMPLES OF THE FINANCIAL ASPECT?
Ordinarily, our idea of financial wellness is based off of our paycheck, bank balance, and monthly expenses.
Hmm… How shallow can we be?
Each of us have a set of circumstances that can either make us or break us.
Ordinarily, we do not think in micro-terms.
Planning thoroughly tends to evade our sense of proper planning.
The expectations increase while means remain moderate.
The following list is but a few responsibilities to consider:
- Caring for Aging Parents
- Creating a Budget and Eliminating Debt
- Estate Planning, Wills and Trusts, and Income Tax Planning
- Financial Planning 101, Retirement Planning, and Investing
- Basics Life Insurance, Long-Term Care Insurance Managing Credit, Managing Financial Risks
- Retirement Checkup, and Social Security Saving for College and Student Loans
- and much more!
Get the picture now?
Nonetheless, Enrich posted the article, “The Three Crucial Things That Most Financial Wellness Initiatives Lack;” in which addresses financial wellness programs for employees.
It is worth noting that the concept still applies to us as individuals.
Look at it as guidance or help to achieve financial wellness:
- Needs Assessment – a financial wellness initiative, you can consider both subjective and objective measures.
- Specific Goal and Performance Assessment – a balance of specific short-term and long-term goals are needed to help your employees balance today’s stressors with tomorrow’s needs.
- 12-Month Promotional Plan – A strategy that keeps the financial wellness at the front-of-mind.
With the manipulation of a few words, we can incorporate those lacks into a method of evaluating ourselves.
“A person either disciplines his finances or his finances disciplines him.” Orrin Woodward
TIPS FOR ACHIEVING FINANCIAL WELLNESS
Achieving financial wellness is no insignificant task.
It will not be easy.
We will really have to work for it.
Remember, nothing good comes easy and nothing that comes easy is always good!
We are going to review some of the tips circling the internet on how to achieve financial wellness.
Notice that much of the content is repetitious.
That is deliberately done to ensure we realize the severity of this topic.
Anna Klawitter posted an article, “7 Tips to Achieve Financial Wellness” identifying:
- Reliable income
- Budget Emergency Fund
- Build Your Savings
- Understand Credit
- Reduce Debt
- Retirement Planning
The truth is, we need to constantly be reminded of what is important and what is necessary.
“25 Tips to Achieve Financial Wellness in 2021” by TDECU provide an even more detailed list of tips.
They include things like “Be Aware of How You Spend Your Money” and “Automate Your Savings” to control the needs vs wants argument.
Planning for major purchases is something many of us fail to do.
We go get it and then worry about how we are going to pay for it.
Seeking advice is a major plus, especially, if we cannot manage on our own.
There are thousands of resources throughout the internet.
There are employee based programs available through a great many employers.
These programs are usually not in the forefront.
So, asking around would not hurt.
There are an overwhelming number of programs and tools available to improve financial wellness.
TIME TO GO PUT THIS INFORMATION TO TASK
This will be brief!
I recommend bookmarking this page for reference.
The importance of financial wellness is underrated.
As a part of our total personal wellness, the financial aspect plays a key role in helping us achieve some semblance of well-being.
Contrary to believe, we are greater that the sum total of who we say we are.
Complacency cannot win!
Know that the financial aspect of Personal Wellness centers around our ability to manage our economic life.
It is important to understand the role of financial wellness.
Our sense of purpose must match our goal of financial security.
We must ask ourselves are we all that we can be financially.
Questioning our security is a great beginning.
Knowing the rules to the game we are playing is essential as well.
Do not be afraid to change, improve, or commit. We discussed the various examples of financial wellness.
The tips will also come in handy to improve our chances of success.
Patiently go forth and be the person we need to be.
And I close out by saying, we need what we need!
If we keep our minds right, we can keep our bodies tight!
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To your success and growth,
Founder of Good Time To Shine