Financial Wellness

Greetings Readers!

Are you stressed? Well, more specifically are you financially stressed? 

According to the American Psychological Association’s (APA) latest Stress in American survey, they found that 72% of Americans reported feeling stressed about money within the last month. Financial stress is quite common, and it is something that does not quickly go away. High levels of financial stress can lead to anxiety, headaches, high blood pressure, depression, and feelings of being overwhelmed. It can also affect other areas within your life like relationships and career planning. However, there are many practices and tools that can help lower your financial stress. The first step in doing this is understanding your financial wellness. 

So, what is financial wellness? 

According to the U.S Consumer Financial Protection Bureau, financial wellness can be defined as a state of being in which a person can fully meet current and ongoing financial obligations, can feel secure in their financial future and is able to make choices that allow them to enjoy life. Essentially, financial wellness is focused on the whole person meaning that it examines how finances can affect you as an individual both physically and mentally. It is not just focusing on the financial literacy aspect of it but focusing on a broader part of your financial life. It is understanding how you can better equip yourself with the knowledge and education to make financial decisions that will help lead to a more successful existence.

So why is financial wellness important?

  • Increases financial security

  • Helps manage money more effectively 

  • Allows for more financial freedom and choices

  • Allows for more financial control

  • Overall, reduces your financial stress 

Improving your financial wellness does not happen overnight but with time and effort, you can lead a successful life where money is not a stressor for you.

Here’s how YOU can be a Prevention Partner: 

  • Understand wants vs needs. When it comes to understanding your wants and your needs it is important to understand that everyone’s financial values, needs, and circumstances are different and unique. 

    • Needs: something necessary to live and function
    • Wants: something that maybe not be necessary but it is something you desire

  • Ask yourself what financial personality you have. Are you a spender or more of a saver? This can help to determine your spending habits and areas that you might need to budget for.

  • Create a budget plan and utilize a budgeting method that works for you. Everyone is different and not every method works for everyone, so it is important to find one that you like! Examples:

    • 50/30/20 budgeting rule: 
      • 50%: Needs 
      • 30%: Wants 
      • 20%: Savings 
    • Zero-based Budgeting 
      • You take your take-home pay and budget down for each category you have until you have $0 left
    • Pay Yourself First 
      • You first set money aside for your own personal saving goals then spend the rest

  • Establish an emergency fund. Unexpected expenses can always occur whether it be a sudden flat tire or your rent increase, it is important that you have that extra money. 

For more tips and strategies to improve your financial wellness click here.