If you have been around The Lavender Hytta, you might have seen the term Financial Wellness float around. You might be wondering what it is…
When we talk about wellness, there are many areas that impact our lives. Matter of fact there are eight key areas of wellness, according to the SAMHSA. They are:
- Emotional Wellness
- Environmental Wellness
- Financial Wellness
- Intellectual Wellness
- Occupational Wellness
- Physical Wellness
- Spiritual Wellness
- Social Wellness
When we talk about health and wellness, it is essential that we cover all of these areas.
Financial Wellness is an essential aspect of your family’s overall health. It is a crucial aspect to help you create a healthy and happy home.
So what is Financial Wellness?
Financial Wellness as defined by Financial Finesse is:
Financial Wellness is a state of financial well-being where an individual has achieved the following: (1) Minimal financial stress,
(2) A strong financial foundation consisting of little to no debt, an adequate emergency savings fund and living below their means, and (3)An ongoing plan that puts them on track to reach future financial goals.
Wouldn’t you love to be in a situation where money doesn’t stress you out anymore? Wouldn’t you like to achieve your financial goals in the future?
Financial Wellness includes your perceptions and feelings about your financial health, but it also includes your behaviors when it comes to your money, your financial knowledge, and your attitude towards money. As you can see it takes a lot of work to achieve Financial Wellness.
What Comes to Mind
When I think of Financial Wellness these things come to mind:
- Understand and have an honest snapshot of your financial situation
- Be prepared for financial challenges
- Have a budget
- Have financial goals and a plan
- To be living within your means
- Plan for retirement
- Not be stressed about paying bills
Each of these things adds up to Financial Wellness. When you have achieved true financial wellness, you don’t have to worry or stress about your money. You don’t have to wonder if you will be able to pay the bills or put food on the table.
To achieve Financial Wellness though you must have a plan, goals, and most importantly be in control of your money. You need to know where your money goes every month.
Finally, Financial Wellness encompasses more than just the area of your finances. Each of the wellness dimensions is interconnected and dependent, so when you work to improve your financial wellness, you will also be impacting your social wellness, physical wellness, occupational wellness, and most importantly your emotional wellness.
What does Financial Wellness mean to you? What do you think it would be life if you achieved Financial Wellness? Would it change your life?