The concept of wellness is used often, generally when referring to a balanced and fulfilling life overall. But what does it mean when someone refers to their financial wellness? Financial wellness encompasses all aspects of an individual’s financial life, involving the goals, resources and decisions that create financial security and peace of mind.
Budgeting is a common practice to improve your overall financial wellness. Whether this is short-term or long-term, creating and following a budget can help align your financial goals, track your expenses, and manage your spending habits. The short-term finances that are included can help prep for the larger goals that are months, or years away. Consistently assessing your assets and your liabilities can enhance your overall financial wellness.
While budgeting seems to be a simple equation to financial wellness, it’s not the only aspect that should be considered. Investing and saving seemingly go hand in hand, but it’s hard for individuals to determine what they should be spending more time, and money, on. Finding a good balance between practicing both will secure a nest egg for unforeseen or emergency expenses, as well as build your assets to help you reach those long-term goals.
Practicing habits like budgeting, saving, and investing will get you to the goal of financial freedom both in the present, and in the future. Accomplishing both short and long-term goals can help you feel like your finances are under control. Retirement planning is a key part of achieving financial freedom, specifically for you and your family’s future. The peace of mind that comes along with retirement planning will set you up for a secure retirement, where your finances don’t need to be worried about.
Working on your financial wellness means incorporating these strategies, plus some, in your day to day life. It’s never too early or too late to start working on your financial wellness. Employing skills of financial literacy will provide you and your family with the life you want to live and strengthen your overall financial wellness now, and for the future.
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