Finding Your Financial Wellbeing
The current global economy and interest rates pressures being felt in countries around the world has shone a light on the need for financial planning and particularly how to work on your financial wellbeing. In this article we focus on how you can improve your relationship with finances and plan for the future.
What is financial wellbeing and how does it impact overall wellbeing?
Financial wellness is the state of your relationship with money. When looking at your financial wellbeing there is a useful framework that can be applied that takes in to account four key areas; control over the day to day, resilience against the unexpected, freedom to make choices in life, and confidence you are on track for the future. Suitably addressing your needs in these areas leads to lasting positive financial well-being.
Financial health can be a great enabler. Financial stress though, has been shown to lead to a greater prevalence of physical and mental health issues, as well as causing people to become less confident, more withdrawn and to miss out on social events. It’s clear with the economic challenges being felt across the world that it is now more important than ever for you to consider your financial wellbeing.
How to improve our financial wellness?
Start thinking about what you want from life in the short, medium and long term. Set personal goals and then decide where additional money could help you to achieve them. Clear targets will motivate you to act and help you make informed choices.
Look at your current relationship with money. What are your financial habits? What motivates your spending, savings strategies, choice of investments and financial products? Are there things that you could do differently to make your goals more achievable? Start making small changes and build positive habits that push you forwards—get help where you need it. There are many charities around the world that can support in opening up the conversation and work with you in building a financial plan.
How to change the relationship with your financial situation
Money has been a taboo topic that can provoke strong emotions. There are lots of reasons people suffer from financial stress and you shouldn’t feel any shame no matter what your financial circumstances are. We’re all fallible; you shouldn’t expect to get everything right all the time. Try to adopt a growth mindset. Challenge yourself and learn how to build better financial habits. Consider how you’re making financial decisions and limit influence of instinct and emotion, as these may lead you astray. Build a plan with a clear direction and look towards the future with greater confidence. Continuing the theme of financial wellbeing we have an article in this edition focusing on Finance Podcasts that could support you in re-thinking your relationship with money and how you can plan better for the future.