Financial Health And Wellness
Financial health can be defined as a 'state' of wealth that can be achieved by individuals or families - irrespective of income
levels.
Three key considerations of a financial 'state' is, that it can be created, it can be conserved and it can be lost
Not only will financial health and wellness vary between individuals, it will also fluctuate between times and changing life circumstances.
For instance, a couple may find that their one-income household budget that was being stretched to its limit, become far less so once their children leave home.
As in the good practice of wellness monitoring your physical and
emotional health, it is important to establish a gauge by
which you measure your financial wellness.
Optimum health - whether this refers to your physical health dimension or any other aspect of health, is underpinned by good habits of creating movement - 'exercising', 'assessing', feeding/nourishing' and 'reviewing' your wellness. These habits will contribute in bringing about awareness, health and vitality in that particular health dimension.
In your financial wellness area, this might relate to financial freedom and ridding yourself of limiting beliefs about money.
How do you apply these habits to your financial dimension?
Since how you perceive will influence what you subsequently do, before you can attend to the practicalities of making changes, you first need to develop a healthy awareness of your personal circumstance and what you're doing about it. For instance:
What is your perception of your financial wellness
How are you processing information relating to your financial health -
(e.g, my situation is bad, is beyond help, can't see how it can be resolved or, my situation can be resolved with some financial advice
What is the extent of any financial monitoring
The extent of any financial planning you undertake
How are you managing your financial planning
Your ability to seek out finance help when you need it
Just as there are differing degrees of physical health, in much the same way, a person will demonstrate differing states of financial wellbeing. What is the gauge by which you measure your
level of financial wellness!
You might want to journal your answers
to the following questions:
How do I know that I am financially healthy
How, and what do I use to assess my financial health
What is the current state of my personal finance
On a score of 0-10, how do I score for this stage of my life
What is the importance of my income to my financial wellness?
Are my current actions promoting my financial health?
What finance help would aid me?
When last did I consult a financial advisor
This might sound far-fetched but some people do in fact sabotage their own efforts for success without even realising it. Set yourself a goal to journal your views, to help you deal with any limiting financial beliefs you might unknowingly be harbouring.
What is your definition of your financial wellness
Having completed the above exercise, you will have a good idea
as to whether you're in financial ill-health, average health or optimum financial health and wellness. Should you be in need of finance help - take action by consulting reputable financial
advisors.
For many people, a personal assessment of their personal finances amounts to what they perceive they can or cannot afford in their
day to day lives. They might for instance base their financial wellness on one or more of the following criteria:
The amount of savings in the bank
The amount of monthly disposable income
The amount of credit card credit outstanding
Ability to take an annual holiday without having to save
They don't need to save-up to make a large purchase
They can comfortably respond to a financial emmergency
However, it is important that you can define your wellness health and wellness in more concrete terms than merely your level of available personal finances. This way you at least have a yardstick by which to measure where you're at and what you want to achieve - i.e. to create, manage and/or conserve.
This will call for a clear and concrete goal. While for some the
goal is quantified in terms of what they want to achieve financially,
for others, thoughts of security, peace of mind, economic freedom and choice will more readily spring to mind.
What is your clear and concrete short-term, medium-term and long-term financial goals?
Managing and conserving financial wellness
Financial wealth will mean different things to different people
and this will be reflected in their goals.
While some people will independently set, review and revise their financial goals, others will seek out the services of financial advisers. And there are those who will not readily engage with their finances, electing instead to leave their financial wellness in the hands of other people.
But if you want to attain optimum health as regard your finances, you must give serious attention to what actions you will need to take for creating, managing and conserving this aspect of your 7 dimension of wellness.
Perhaps you could now journal your answers to the following questions:
What is my current income
What are my outgoings
What savings arrangements or provisions have I made
Do I have pension provision
How adequate will my pension be in 10 - 15 years time
Where will I be financially in 10 - 15 year's time
Do I need a financial advisor
How could financial advisers help me
What one, two or three things can I do this minute to improve
my financial health?
It might seem far easier to shy away from financial health monitoring, for fear of learning the truth about your financial situation. However, it is only by monitoring your responses to the above on a regular basis, will you get a clear picture of the state of your financial health. In just the same way that you self-monitor your physical health, your financial health will need a similar degree of monitoring too.
An awareness of your personal financial situation - regardless of how unhealthy it may be is a must. Knowing how things are and knowing what you want, will help you to make plans that will move you in the direction of where you want to be.
If need be, consult reputable financial advisors before making your choice of one who can work with you to help you achieve your
financial health objectives.
You can use the Health Womens Wellness
Wheel to assess your financial health and wellness dimension.
Useful Resources:
The information on this site is purely of educational value and is not intended to replace your seeking medical advice. You must consult your doctor over all your health concerns.
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