Skip to main content

Be Conscious of Your Financial Wellness

Written by Liz Word under the direction and review of Lorna Saboe-Wounded Head.

Just like going for a wellness checkup with your doctor, checking in on your financials is an important part of a well-rounded healthy lifestyle. The 2017 Stress in America Survey revealed that 62% of Americans reported money was a significant source of stress in their lives. This is nothing new because year after year money is the number one source of stress for individuals at any age. The side effects of poor financial health include stress-related illness, decreased work productivity, absenteeism, marital discord, depression and anxiety. Our financial wellness is directly correlated with our health and it is important to keep both in balance.

What is Financial Wellness?

Financial Wellness involves the process of learning how to successfully manage financial expenses. It is pertinent to realize that everyone’s financial wellness looks different. Our financial wellness plan should be tailored to our specific financial situation and not modeled after another. The Bureau of Consumer Financial Protection defines well-being as having financial security and financial freedom of choice, both in the present and in the future. Financial well-being is a distinctly personal state and cannot be fully described by an objective financial measure. Our financial wellness is subjective to our personal financial needs.

    The Four Elements of Financial Well-Being

     

    Present

    Future

    Security

    Control over your day-to-day, month-to-month finances.

    Capacity to absorb a financial shock.

    Freedom of Choice

    Financial freedom to make choices to enjoy life.

    On track to meet your financial goals.

     

    It is important to note that at any given time, some factors of financial well-being are within a person’s control and others are not. Your social and economic environment can expand or restrict your opportunities. For example, your employer offers a company retirement plan, but your best friend does not have that same financial opportunity.

    Our financial behavior is guided by our personality, attitudes, knowledge, and skills—all distinct to us as individuals. The actions we take as consumers, within the options that are available to us, create our level of financial well-being.

    Tips for Financial Wellness

    • Balance: Learn to live within your means.
    • Ask: Explore financial information and decide what choice makes the most sense for you
    • Plan: Connect your aspirations for the future to concrete plans
    • Act: Activate your decisions through well-thought out actions to set yourself up for success

    Regulate your health and finances for a balanced lifestyle. Use the tips above to check in with yourself and your financial well-being.

    References: