We all want to be financially well off. Some may even want to be rich. But the most important part of understanding financial wellness is that you are really trying to improve your financial wellbeing and quality of life. This is not about amassing wealth. Financial wellness is about understanding where your money is coming from, where it is going, and being happy with the life you live because of it.
There is no number attached to financial wellness. This is completely up to each individual and if they are controlling their finances or if their finances are controlling them. Poor financial wellness can afflict anyone at any income and is no discerner of persons. Many times it is not the individuals fault but simply because they don't know the tools to help them.
Financial Wellness Tips
Living Within a Budget
Build and maintain a budget that you can use to identify your basic needs. Many are surprised at how much income will go to a specific want that is not necessarily what they need. This tool will help you understand where you are and how you can get where you want to be. Too many people spend money they haven’t earned to buy things they don’t want to impress people they don’t like.
When you understand where your money is going you can better decide where to send it. The first step in making financial progress—or progress in any area of your life—is to do an honest assessment of your current situation. Part of that includes letting go of the past. It doesn’t matter what happened before, or if there is someone you want to blame for your current situation. All that matters is where you are right now, and where you want to end up.
Identifying What you Have and What you Want
The definition of financial freedom is: having what you want and wanting what you have. To be financially free, you need to line up two areas: the ‘haves’ and the ‘wants.’ It’s a powerful concept when you consider it. If you want something, you don’t have it. So, if you don’t have what you want, you can’t be free.
Always wanting more can become an addiction. This addiction keeps you constantly dissatisfied because you’re always focused on what you don’t have instead of what you do have. To want something is to lack that very thing. In the end we must decide if the want justifies the cost.
Money is neither good nor evil. It’s simply a medium used to exchange goods and services; or better yet, an amplifier magnifying your personal qualities for better or worse. One reason people resist financial coaching is because it reveals what they really value, and it can be incredibly humbling to one’s self-image.
Seeking this help can help you break down these barrier and give you the freedom you deserve. By reaching out and asking for you help you are able to see your financial blind spots and discover hope for a better and brighter quality of life.
Save for a Rainy Day
Having a savings can be important for many financial crisis that may occur. "The only thing predictable about life is its own unpredictability." That is why it can be important to save funds for the day you get a flat tire or need to pay for your kids soccer enrollment or other unforeseen tragedies or opportunities. Your savings is not just for the hail and lightning storms of life but also for the times you want to jump in the puddles.
Savings can enable you or be a great safety net. It is your choice on how to use those saving, but the important thing is making the effort now to save. Retirement plans like a 401K is an excellent example of intentional savings for future enabling event (retirement). Using those saving now and investing now is what is going to make the difference in the end. Too often compound interest is working against you. But with the proper investments now, that compound interest will be working in your favor and will give you more financial freedom in the future.
At Woodgrain we want all of our employees to experience financial wellness. For most people this is one of those things that will be the highest priority in their lives. For that reason Woodgrain offers many benefits to help each employee and their families achieve financial wellness. This includes: