Join Illinois State’s Health Promotion and Wellness LIVE WELL with EIGHT at STATE Program to learn more about financial wellness this month, and visit our LIVE WELL Financial Wellness page for more campus-based resources.
Money may not buy happiness, but financial wellness can lead to a more fulfilling life. In today’s world, being financially stable is not only about having a good salary but managing money effectively. Financial wellness is the state of an individual’s financial health. It is defined as having financial security and freedom of choice in the present and future. Financial wellness encompasses the ability to make ends meet and the capacity to plan and enjoy a comfortable lifestyle.
Some people struggle to make ends meet despite having a decent income and are constantly stressed about their finances and feel stuck in a cycle of debt. Take time to focus on achieving financial wellness by educating yourself on personal finance, creating and working with a budget, and saving and investing. You may pay off your debts, start a retirement plan, or take up the dream vacation you have been putting off for years.
Financial wellness makes you feel empowered and in control of your future and requires knowledge, discipline, and good habits, from budgeting to investing. How do we explore the various aspects of financial wellness that can help attain financial security and peace of mind?
The first step toward financial wellness is budgeting. This involves determining one’s monthly income and expenses and setting limits on how much can be spent in each category. A budget helps you understand where your money is going, which helps you adjust your spending habits.
Saving is another important aspect. Saving money does not only involve keeping money for unexpected expenses but also preparing for the future. This can include saving for retirement, education, or a home. Experts recommend saving at least 20% of your monthly income; an easier way to do this is to automate the process. Set up an automatic transfer from a checking account to a savings account to ensure that your monthly savings goals are met.
In addition to these primary wellness habits, investing in one’s financial education is important. This includes learning about personal finance, investing, and retirement planning. There are many resources available online or through local financial institutions to help individuals learn about these topics
Financial wellness is an important aspect of overall well-being. It requires discipline, knowledge, and good habits, but the benefits can be significant.
