What is financial wellness?
This is a state where one can meet your current and future financial duties and feel comfortable about your finances. Financial wellness is important in improving an individual’s mental health. This is because it creates confidence and control over your financial decisions.
Dive in for more information on financial wellness.
Why Is Financial Wellness Important?
A well-secured financial life is pivotal in improving one’s quality of life in the ways below;
It Reduces Stress
Money is one of the most common and leading causes of stress today. Stress over money affects other aspects of your life such as family, relationships, and even your career.
With time, financial stress can cause health problems such as anxiety and depression. Paying more attention to your financial wellness can significantly reduce the chances of getting such health issues since you have no unpleasant financial sacrifices.
It Increases Your Level of Creativity and Innovation
One of the most important foundations of investing is the willingness to take risks. When worries regarding your finances constantly hold you down, you have a lower possibility of venturing into risky ventures. This fear locks you out of numerous opportunities that would see your money gaining great returns.
It Enables You to Balance Work and Family
The struggle to make ends meet puts most women at a point where they must sacrifice other aspects of their lives. More often than not, people will sacrifice personal relationships and leisure to make an extra coin.
They end up putting in more hours at work at the expense of their social life. Financial wellness gives you the freedom to create a balance between work, family, and social life. You get time to engage in what you find time-worthy.
How Then Can One Achieve Financial Wellness?
Give Yourself a Financial Audit
This involves tracking how money moves in and out of your accounts. Check on things like debts, monthly expenses, savings, and more. Examining your previous financial habits will shed light on items you have previously deemed important. It is easier to achieve financial wellness when you eliminate expenditures that bring you guilt.
Manage Your Debts
Work towards eliminating credit card debts and personal loans with high interest. This is because servicing these loans turns out expensive in the long run. Once you have cleared the high-interest loans, start paying minimums for the medium and low-interest debts.
Save for Emergencies and the Future
Experts recommend that you dedicate at least 10-15% of your income to your retirement plan. Start saving as early as possible. Moreover, remember to set some money aside for emergencies. Your emergency fund helps you cater for unseen costs or when dealing with unemployment.
Are You Ready to Achieve Financial Wellness?
It is important to secure your financial wellness by investing heavily in healthy financial habits. In addition to living within your means and reducing debts, ensure your invest your savings. Every person deserves financial wellness to improve their quality of life. Be intentional about your current finances to secure yourself a better tomorrow.
Sources: apa, ResearchGate, Centre for Retirement Research, RetireGuide, Corporate Wellness, opploans
