There’s a term “Financial Wellnees” that we read about everywhere. We hear about usually. And also use it often. But do we understand this term entirely? Um, there’s a doubt about that. Pause, and try to guess what this much-talked-about term might be? It’s wellness.
The Global Wellness Institute defines wellness as:
The active pursuit of activities, choices, and lifestyles that lead to a state of holistic health. Wellness is beyond having good physical and mental healthhttps://globalwellnessinstitute.org/what-is-wellness/
Wellness is multidimensional, and lately, finances too have become a significant part of overall wellness because of the encompassing effect it has on humans.
What exactly is Financial Wellness?
The extent to which someone is prepared to meet all their current commitments and needs comfortably and has the financial resilience to maintain this in the future. Financial Wellness is having control over day-to-day, month-to-month finances; having the capacity to absorb a financial shock; being on track to meet your financial goals, and; having the financial freedom to make the choices that allow you to enjoy life.
Financial wellness is a functioning result of all of the financial areas of your life, including your personal savings plan, budget, investments, retirement plan, credit and credit scores, tax planning, and insurance coverage.
Financial wellness depends on the relationship you share with your money – do you understand your money deeply or superficially. Do you know where and how much to invest or save? Do you have plans to meet your short term and long term financial goals in life and so on? The more positive you feel about your money, the more you move up on the quotient of wellness.
In a nutshell, financial health is a part of financial wellness, which is achieved by knowing your money, planning it wisely, and achieving a sense of control.
We previously wrote small chapters on financial wellness. You can check here