Attaining a balance between life and work and present and future can be stressful for many people, but it doesn't haven't to be.

Financial wellness comes from being realistic with our pocket books, balancing our current reality against future goals, and understanding the basics of personal finance and the options available to each of us to achieve some sense of serenity and a healthy financial life.

Broadening our financial literacy is the first step to financial wellness.

This article will walk you through the basics of personal finance, it's importance, and how to embark on your own path towards financial wellness. Let's get started!

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What is Financial Wellness?

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Financial wellness can be explained conceptually as the status of our individual financial health that allows each of us the capacity to feel secure in our future while making financial decisions that bring us joy today. Sounds ideal, right?

Though simple in concept, achieving financial wellness isn't that easy for many of us. Financial wellness may seem out of reach based on any number of circumstances and situations out of our control, whether it be a lack of retirement planning, poor advice or limited access to services.

One of the important take-aways from this is that there are many factors that are in our control as well! The path to developing financial well-being starts with understanding the basics, taking ownership of what we can control, and becoming increasingly mindful when it comes to personal finance to achieve our long-term goals.

It's never too early or too late to get a grasp on these issues, and simply by reading this article, you're on your way!

To get started, it's usually a good idea to think about about what financial wellness means to you. Each of us are unique individuals that take different paths in life, so there isn't necessarily a one-size-fits-all prescription for financial wellness. Asking yourself plain questions. Answering honestly will help serve as a guide for how you want to use or build savings and identifying what you want to plan for. Here are some sample questions to get you started:

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• What does money represent for you?
• What has been your relationship with money in the past?
• Do you have or want a family?
• Do you have concrete goals you want to achieve, like home ownership or targeted age for retirement?
• Have you ever set and kept to a budget and are you able to live within your means?
• Have you devised a financial plan for health emergencies?
• What activities, hobbies or actions do you love and want to prioritize for now?

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Once you've given questions like these some thought, you can move on to understanding the main components of financial wellness and creating a path to realize your ideal outcomes.

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The 4 Main Elements of Financial wellness

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These elements aim to represent your financial goals by helping you make informed decisions and getting to a stage where you're financially prepared for anything.

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Financial Security in the Present

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Financial security in the present signifies your ability to feel reasonably comfortable meeting your day-to-day financial needs today. Financial security in the present isn't about living lavishly or are spending beyond your means. It's actually the opposite! Our goal is to achieve some sense of comfort and security today that helps us build towards the future we want as well. This element is the cornerstone to achieving financial wellness, and we'll come back to this later.

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Freedom of Choice in the Present

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This aspect is independent of your job or career and is all about living your best life. Financial health incorporates the freedom to take on exciting adventures, explore hobbies, have fun and make decisions that may have some financial ramifications without the extreme stress of its impact on your pocketbook today. Of course, this doesn't mean you have a free pass to kick all responsibilities to the curb. Freedom of choice in the present doesn't mean we're sacrificing our ability to attain our future financial goals.

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Financial Security in the Future

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Preparation for the future is a necessity that many people don't incorporate nearly enough. In life, anything can happen. Effectively managing your finances today means that you'll be able to absorb a financial impact for the good or the unplanned things later on.

The main thing to remember is that you should always have a certain amount of funds to take on any future issues head-on.

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Freedom of Choice in the Future

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Setting the right financial goals can make or break your financial journey. Having a better understanding of what to expect in the future and what you're working towards will help you prepare properly.

Keep in mind that personal financial wellness isn't just about absorbing these 4 elements. However, incorporating these concepts into our planning and decision making is the foundation for a productive, happy, and stable financial self.

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Why is Financial Wellness Important?

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In an ever-changing world where employers and employees face regular hurdles, taking care of every penny is imperative. Being mindful and careful with your money will result in better financial health, physical health, and mental health now and down the road. On top of that, here are a couple of main benefits.

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Prevention of Money Woes

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We can't predict the future. Simply because our income might be good now, that doesn't mean it will be later. Most of us will encounter money problems multiple times throughout our lives. Ensuring you have a safety net and being responsible with your money today will enable you to meet most challenges that lie ahead.

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Readiness for Financial Emergencies

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A financial emergency can strike when you least expect it, which is why you need to be prepared. This can be anything from health care to lending money to a friend or family member in need. Incorporating financial wellness goals and concepts into your life gives you that - a way to more easily deal with unexpected circumstances and problems.

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Balance Between Life and Work

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When you don't have to spend your time hustling or thinking about whether or not you have enough to go around, you'll be able to enjoy life to the fullest. This will allow you to emphasize more of the things that bring you joy rather than living paycheck to paycheck.

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Less Stress

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Money is stressful for everyone. The Covid-19 pandemic has only worsened the situation and many people find themselves unable to relax in the wake of an unknown future. It's recommended that you start investing time in financial wellness in an effort to lessen the impact of financial stress.

Financial stress can influence other spheres of your life, including family, friends, and work performance.

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Heightened Efficiency and Creativity

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Sometimes, we need to take risks to expand our knowledge, gather new benefits, or realize long-term goals. The truth is, this is difficult to do if you're constantly thinking about money and if your financial stability is shaky, preventing you from taking said risks.

Focusing on improving your financial well-being can improve efficiency and creativity, as well as give you leeway to take business risks that you otherwise couldn't.

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How to Achieve Financial Wellness

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Ok, now that we've given a financial wellness definition and discussed the benefits of a healthy financial life, it's time to jump into the how.

There are a couple of crucial steps you'll need to take in order to achieve a certain degree of financial wellness. This article is about getting you started, though there are many detailed and thorough resources out there for those that want to perfect the art of personal financial wellness.

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Think about your short-, medium- and long-term financial goals

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This is the very first step you should take. Before you can start building financial well being, think about some of those questions we posed earlier, and write down what financial wellness means to you. Incorporate your goals and try to prioritize them. Keep this list handy. You'll want to come back to it from time to time to see if your priorities have changed, make adjustments, or simply to celebrate milestones when meeting your financial goals.

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Set up your Finances by Establishing a Budget

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Gather all the financial information you can about your credit card debt, available resources, savings, student loan debt, and monthly expenses for the essentials (food, warmth) and the discretionary (hobbies). This information will tell you much of what you need to know about yourself and how you've been spending money up until this point.

Once you've got that information settled, settle into a budget that helps you make the most of your money. There are lots of helpful tools on how to create a budget. Remember - your budget can be whatever you want it to be, but the crucial thing here is that you do not go over it. Constantly spending beyond your means will have a negative impact on your financial future.

Don't go overboard with the budgeting either. This tool is meant to support you and stop you from spending too much, not stop you from enjoying the magic of life!

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Manage and Monitor your Debt

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Debt can be crippling no matter what forms it comes in. The terms and conditions of many common consumer debts (that means interest!) can have a large negative impact on your financial well-being. Check the interest rates. Many student loans may have lower interest requirements than credit cards or traditional consumer loans. Prioritize repayment of loans with the highest interest rates first.

Maintaining some debt can be great for building good credit, but ensure you pay off those credit cards as quickly as possible. If you already have built up a large credit card or loan balance, this should be one of your largest priorities. Having to pay off your debts may seem insurmountable, but the key is to actually push towards closing these debts as soon as you can. The longer it goes on, the more financial strain they'll cause.

The same applies for past due taxes. Penalties and fines on unpaid tax obligations can only get in the way of saving for the future.

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Have a Plan for Financial Emergencies

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Despite all of your thorough planning, you simply can't predict what will happen at every point in your life. This is why you need to be prepared for virtually anything, financially speaking. This also includes investments - perhaps an investment opportunity will present itself and you'll need to be ready.

Make sure you have an 'emergency fund' that'll cover any unexpected situations that may arise. This'll alleviate the strain you'd feel if you had to react quickly with money you've prepared for something else.

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Save Some of your Money for the Future

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This can come in all sorts of forms. Open a high-yield savings account, a retirement savings account or an investment account at a brokerage firm. When you're ready, you'll want to open all three and begin to diversify your savings to optimize for financial return and personal flexibility. If you're not yet comfortable with investing, consider tapping into a financial advisor. While these types of resources do cost some money, these services often help pay for themselves quickly and help bring peace of mind with the knowledge that you're on the right path.

If you work for employers that have employees financial wellness programs, take advantage of any free resources to you. Many organizations and businesses offer matching programs for retirement accounts. Taking advantage of these types of workplace programs will help you build financial security for the future.

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Donate Money and Give Back for Mental Health Benefits

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This might sound counterintuitive considering we've just been talking about keeping your money tight unless necessary, but this is actually exceptionally good for mental health. Financial literacy isn't just about what you do about yourself - it's what you do with the money that can impact the world (and yourself) in other ways.

People appreciate it when you're 'paying it forward' because you're essentially sacrificing a little of your own resources for the others' benefits. Studies have shown that the simple act of giving has drastic (but positive) effects on mental health.

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Final Words

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Don't stress too much if this entire process feels overwhelming. It's a natural reaction to feel confused or anxious about big changes and especially those involving money or financial literacy. Proactively embarking on a financial wellness program will be worth it in the long run. If you own a business, the same rules apply to your workplace as well.

It may take some time until you've truly gotten acquainted with all of the various aspects of pursuing financial wellness. Being proactive and consistent in your and but as long as you don't give up, you should be in a good position. Remember - risk without a foundation is nothing more than a wrong decision.

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