Financial wellness is likely the wellness that most of our readers are feeling the strongest in. If you are at the point in your life where you are creating retirement portfolios and trading, you are likely doing well in this area at the moment. However, many of us are coming to the party late. After clawing your way up through your twenties and perhaps even mid to late thirties, you may finally be ready to start saving for the future but perhaps are a little concerned you have some considerable catching up to do. I think that we tend to view talk about money as very taboo in our society. Of course everyone wants money but it seems to be bad form to talk about that desire or to admit to having financial concerns color our opinions and decisions about life choices and people. Yet when you look at statistics, financial stress is a common source of anxiety and fear and also a common cause for divorce. So while we tend to feel like we can't “want money” we do need it.
The trick comes with having a healthy relationship with your finances. You don't want to be a slave to bills and loans, getting trapped in a cycle of paying interest forever, nor do you want to be so obsessed with earning money that you sacrifice your social and vocational wellness to get it. Of course we all know that it is incredibly challenging to find a vocation that satisfies us and provides us with proper financial support and doesn't eat all of our hours in the day where we have nothing left for anything else. However, there can be a compromise and a middle ground. When we are selecting our vocation perhaps we are not able to find the most satisfying one with the financial payments we need but we can find a compromise on this. Only you know what you are willing to compromise on and for how much. Going back to our high school economics class, we can remember the opportunity cost here and think about what we are willing to do to achieve something else. This line is different for everyone, but also maybe something we need to assess depending on how well we are honoring our other wellness.
Financial wellness is beyond how much money you make or even your credit score or assets. Your financial wellness is defined by having minimal financial stress and having a strong foundation to live within your means. This means having an adequate emergency fund and having little to no debt. Some people who seem to be very well off and comfortable might still not be financially well. Even some readers who were feeling confident in their financial wellness right now, might be experiencing some doubts. A common reason for this is because we may start immediately advancing our lifestyles once we have achieved a level of success, without first taking care of debts and issues from our previous life. We of course deserve to enjoy our money, but also need to make fiscally sound decisions with it.
To assess your financial wellness, rate the following statements on a scale of 1 to 5, 1 being the highest/most and 5 the lowest/least.
1- I am satisfied with my current financial situation.
2- I am comfortable with the debt I have and am able to make payments to relieve the debt in a timely manner.
3- I have a budget and I stick to it.
4- I am confident in my financial decisions.
5- I have a 3 month emergency fund.
6- I pay off credit cards in full every month
7- My income exceeds my expenses.
8- I am able to pay bills and loans in full each month.
9- I feel confident in my finances.
10- I have started saving for retirement.
11- I have paid off student loans or am on a repayment plan that I follow.
Tally up your score, if you have a score more than 33, you are in need of some modifications to your financial wellness. Tips for helping your financial wellness largely can come from our team at Bullionite. This is not a one size fits all area and the experience and knowledge of our team can help you assess your financial wellbeing and get it on track. Of course the actually nitty gritty of finances is only part of your financial wellness, there is an emotional side to it as well. Perhaps even with everything perfect, you are still feeling nervous or hesitant about your finances, if this is the case, hop over to our mindfulness exercises for exploring the unknown here and start exploring the fear and anxiety you are feeling. The basis of these emotions can be accessed with regular thought placed on them. With the combination of good fiscal advice and personal time to take control of your emotions you can be on the path to financial wellness!
Are you surprised by our assessment of your financial wellness? Reach out to us at info@bullionite.com with your comments or questions!