Having financial wellness is a crucial part of leading a fulfilling life. As the famous saying goes,"Money can't buy happiness, but it can give you the freedom to steer your own path." While some people may overspend and give in to impulses, others practise mindfulness to achieve financial stability and security.
Having wealth is not enough; adopting healthy money habits and making smart financial choices are essential for sustained success and overall satisfaction. In this article, we will explore the importance of financial wellness and provide practical tips for attaining it.
Financial wellness means being financially healthy and empowered to make intelligent financial decisions, manage money responsibly, and achieve financial goals, such as budgeting, savings, debt management, credit scores, retirement planning, and understanding financial risks related to life events like job loss, health issues, or marriage.
Achieving financial stability and security is essential to overall well-being. Financial wellness helps individuals manage finances responsibly, make the most of their income, and focus on physical, mental, and social health. It also provides resources for career advancement, education, and community involvement, giving individuals the peace of mind needed to lead a healthy and fulfilling life.
Failure to practise financial wellness can lead to financial stress, severely impacting physical and mental health. High cortisol levels, a hormone released in response to stress, can lead to high blood pressure, weakened immune systems, and depression.
Unhealthy behaviours such as overeating, smoking, and drinking may also be triggered by financial stress, leading to negative consequences for physical health, emotional distress, and poor mental health, like anxiety, depression, and insomnia.
To reduce financial stress, consider these tips:
Create and stick to a budget: Track income and expenses and plan to manage money.
Live within your means: Avoid overspending and taking on unplanned debt.
Cut back on unnecessary expenses: Identify expenses to reduce and use that money to pay down expensive debt or save for the future.
Make a plan for long-term financial goals: Plan to achieve long-term goals, such as paying off high-cost debt or saving for retirement, and prepare an emergency plan.
Take advantage of free financial resources: Use free online resources to manage finances, seek financial advice, access credit counselling, financial literacy, and stock market analysis.
Invest in savings: Consider long-term objectives by setting aside 10-15% of your gross income for retirement funds.
Talk to a financial advisor: If overwhelmed by finances, seek professional help to create a plan to reduce financial stress.
Remember that your relationship with money requires attention and time. Prioritise financial wellness to ensure increased savings and retirement planning, improved credit scores, reduced stress, improved financial literacy, balanced work and life, and enhanced productivity. While everyone's financial wellness looks different, utilising tools, access, and programs available can set small goals and eventually reach milestones. Take control of your financial well-being today!
Gaurav Chopra is the Founder & CEO of IndiaLends-an online marketplace for credit products
