Financial wellness refers to the state of being financially stable, secure, and healthy. It encompasses a range of factors such as the ability to manage one's finances effectively, having adequate savings, minimizing debt, and having a plan for the future.
Financial well-being is closely related to one's overall well-being, as financial stress can negatively impact a person's mental and physical health.
Improving financial wellness involves taking steps to manage money more effectively and make smart financial decisions. Some actions you can take include:
Creating a budget/spending plan: Creating a budget or spending plan is the first step towards achieving financial wellness. It allows you to see where your money is going and make adjustments as necessary. It is also an important element in any financial plan.
Paying off debt: Debt can be a major source of financial stress. Paying off high-interest debt should be a priority to improve your financial wellness, as it will help reduce financial stress.
Building an emergency fund: An emergency fund can provide a safety net in case of unexpected expenses or loss of income.
Saving for retirement: Saving for retirement is essential for long-term financial security. Start early and contribute regularly to retirement accounts such as pensions or equity ISAs.
Seeking financial advice: A financial adviser or financial coach can provide guidance and help you make informed financial decisions. Empowerment comes from working with the coach as the adviser is being paid to make recommendations.
Investing in yourself: Improving your skills and education can increase your earning potential and improve your financial wellness over time.
By taking these steps, you can improve your financial wellness and well-being, reduce stress and anxiety, and achieve financial security for the future but it would seem that taking care of wellness first, will lead you towards financial well-being. Neither will remove money stress or concerns entirely from your life, but you do have the power to be more in control of matters than you think.