Money cannot buy happiness but let’s face it, we need money in order to survive. How can we buy our food without money? How do we pay our bills and how are we going to send our children to school? Whether we like it or not, money is an important factor in our lives. The lack of money can greatly influence our wellness. Many people get sick and many relationships are shattered because of the problem with money. Thus, it is important that we take care of this dimension of wellness. So ask yourself, are you financially well?
Financial Wellness
What is financial wellness? Financial wellness is being able to meet financial obligations and manage finances effectively. When you are financially well, you don’t worry about putting food on the table and paying your bills. You feel secure about your financial future. You are also not worried about losing your job because you have enough passive income to keep you afloat. But most importantly, you can make choices that will allow you to enjoy your life. You will not settle for a job that you do not enjoy. In a nutshell, it is all about having peace of mind when it comes to money.
Sadly, statistics reveal that more than half of the world’s population are living from paycheck to paycheck. Many people don’t even have money set aside for emergency use. And many more are buried in credit card debt. It is a never ending cycle called the rat race. Surprisingly, even those high-income individuals are part of the rat race.
It is not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.
-Robert Kiyosaki
This means that even if you have a high income, it does not necessarily mean that you are financially well. Financial wellness includes the ability to manage finances effectively. It includes paying your bills in time. It involves not only saving but investing as well. Thus, financial literacy is an important factor in achieving financial wellness.
Road to Financial Wellness
Contrary to popular belief, financial wellness is not reserved only for those people who are born rich or those with a high-paying job. Anyone can achieve financial wellness, regardless of background, age, gender, occupation, race, country and occupation. It is all about the mindset. Having a wealthy mindset is the only road towards financial wellness. Change your poverty mindset to wealth mindset and soon you will find yourself financially well.
Are You Financially Well?
To kick off your journey towards financial wellness, it is important to first assess the state of your financial wellness by answering the following questions:
- Do you keep track of your expenses?
- Are you spending less than your monthly income?
- Do you have and follow your monthly budget?
- Do you pay all your bills in full and on time?
- Do you have an emergency fund that can cover at least 6 months of your monthly expenses?
- Do you have a well-defined long-term financial goal?
- Is the amount of your debt manageable?
- Do you have insurance that is enough to support your financial needs in case of emergencies?
- Can you sleep soundly at night without having to worry about money?
- Do you have the ability buy anything that you want and the freedom to choose what you want to do with your time without money issues?
If you answered YES to at least 7 of the questions, then, congratulations! You are financially well!