Financial wellness is living a healthy economic life for yourself and feeling good about your financial situation. It is also an essential part of taking care of yourself and those around you. Financial wellness can mean different things for different people when it comes to your finances. However, financial wellness encompasses these key areas:
- Taking control of your money before it controls you.
- Determining how safe your money is.
- Planning what to do with your money.
Financial wellness can lead to financial freedom.
Financial wellness can provide you with the confidence to make choices while living the life you've earned — literally. When you manage your money efficiently, you could have shelter, food, clothing, and participate in the broader economy. Financial wellness can also help prepare you for future short-term and long-term expenses and emergencies that may arise.
How can you start your financial wellness journey?
Save money in small ways every day through the choices you make. For example, choose to drink water while you’re eating out instead of ordering a drink from the menu. Or check for coupons in this week’s newspaper or online to save on items you regularly purchase.
Save for your financial future through investing. Regularly contribute to your retirement savings through your employer's retirement plan, IRA, or Roth IRA.
Educate yourself. Financial literacy is the confluence of economic, credit, and debt management knowledge necessary to make financially responsible decisions—choices that are integral to our everyday lives. A lack of financial education is one of the reasons why people struggle with saving and investing. The more you know, the more likely you are to make good decisions. Here are a few financial literacy resources to keep in mind:
- Smart About Money (SAM) is a web-based, self-directed financial literacy program that provides financial information, tips, and skills necessary to be financially stable.
- Mint is an application that allows you to see your financial life on one platform. Mint helps you manage your money and save and makes recommendations that can help you save based on your lifestyle and goals.
Create a budget. A budget helps you review your revenue and expenses over a period of time that is re-evaluated on a periodic basis. A budget helps you review your revenue and expenses over time, such as monthly. A budget is a tool to help keep your finances on track as you adjust to changing financial situations.
Work with a financial professional. A financial professional can help evaluate your financial situation and provide you with ideas to become financially well. Work with them to create a financial plan to help prepare you for the future by examining your financial stability today.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing. Investing involves risks including possible loss of principal.
All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
This article was prepared by Fresh Finance.
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