IF you are financially well, you are empowered to use money as a tool to achieve the things you want in life. Financial wellness involves examining your relationships, attitudes, and use of money.
It’s a necessity, but it also holds an enormous amount of symbolic and psychological power over you. It has been said that money is the most meaningful object in contemporary society. Stated bluntly, your life revolves around money. You need it to buy food and shelter, and you spend your life working for it and saving it. The fact that it is such a vital part of your life is one reason why money has such an impact on your overall well-being.
People struggle with money in various ways. Striving for financial wellness is essential for achieving security, and it’s necessary to understand money’s role in living a productive, healthy, and satisfying life. Financial wellness does not just mean being financially well-off, but also involves financial education, planning, understanding one’s relationship with money, and eliminating debt.
It’s easy to see an almost instantaneous effect on their well-being. Stress levels increase, which can result in problems with high blood pressure and heart disease, not to mention the stress that can adversely affect personal and public relationships.
It can take a toll on other areas of your life as well. For example, if you are not educated about how to make effective financial decisions, your choices for spending will not be wise or informed. If you take spending money from other areas of need, you end up struggling, ultimately causing yourself problems that could result in costing you even more money. It’s a vicious, endless cycle. This is why building financial habits that will help you save for the future and becoming educated and financially stable are such important parts of wellness and proactive health.
People have an intimate relationship with money, and they need to be fully aware of that relationship to keep it healthy. It is easy to see that educated spending on the daily essentials can have a significant impact on overall financial wellness. However, while many individuals keep a close eye on some expenditures, they often overlook others, like health care spending. Studies have put average annual health care spending for a family of four upwards of $20,000 per year. Effectively managing this type of ongoing expense can have a larger impact on financial wellness than even housing or transportation.
Just like intellectual wellness, it is something that you should always be striving for. Not only is it important to stay current on the outside factors that influence financial health, such as policy decisions and global financial concerns, it is also important to stay current on your own financial status and relationship with money. As your life changes, so will your relationship with your money.