Being healthy isn't just about avoiding sickness. It's a comprehensive and holistic routine that includes physical activity, nutrition, and overall well-being. The same is absolutely true regarding your financial health. Being debt-free doesn't necessarily mean you're financially fit, and achieving true wellness often requires a shift in perspective.
Just like you need medical professionals to keep your body strong, an experienced financial planner can help strengthen and sustain the wellness of your finances over time. When done right, financial planning is an ever-evolving process that needs constant attention. It involves regular check-ups, doing the work between appointments, and reaching out to a professional whenever you have questions or concerns.
What financial health really means
So, what does it actually mean to be "financially healthy?" simply put, it means you're satisfied with your financial situation.
You may not be rich, but you don't lie awake at night worrying about money. You feel pretty good about where you are now and how much you're saving for the future. You might not have as nice a car or house as your neighbors, but you're comfortable.
Making smart decisions
When you're financially healthy, you know you're making smart money decisions. Of course, you may indulge yourself occasionally, but you generally spend wisely. As a result, you have an emergency fund, you save for short-term goals, and you invest in your retirement and your child's education (if applicable).
Most importantly, you have a roadmap.
Adopt a CEO mindset
A great way to approach financial wellness is to run your finances like a successful business. To accomplish this, you have to adopt the right mindset.
Think of every dollar you have as your employee. As the CEO, you want to make sure your employees have a purpose and are working hard for you. If they're not pulling their weight, your business could fail. So, take a moment to assess their performance. Does every dollar have an important job? Is it doing its best work for you?
A simple spending trick
This is easier said than done, right? Try this to start. Before you buy something, take a moment to ask yourself two questions:
Is it really worth the hours of hard work that went into earning it?
Will you feel as good about that purchase five years from now as you will five minutes from now?
Sometimes all it takes is a little perspective.
The benefits of staying fit
Your financial wellness may be only part of who you are, but research has shown that finances are one of the leading causes of stress and can contribute to several physical issues.
People who feel financially healthy reap several benefits, including:
- Feeling less stress
- Being more productive
- Displaying less absenteeism at work
- Enjoying life more
Most importantly, people who achieve financial wellness are more likely to feel confident that they're in control of their lives.
How to measure your progress
Unlike your credit (FICO) score, which is a single number, your financial wellness isn't a single data point. Instead, it's measured by your answers to questions about your life and feelings.
Ask yourself:
- Do I understand my attitudes about money and where those attitudes come from?
- Do my attitudes about money and finances work for me, or do I want to change them?
- Do I feel in control of my finances, or do I feel that my financial situation determines my happiness?
- Do I have the financial freedom to enjoy life today while planning for tomorrow?
- Am I on track to meet my short-term and long-term financial goals?
These questions are only a starting point. But if you answered a resounding "yes," you could be in good shape. If you answered "no" to any of them, perhaps it's time to explore how you can boost your financial fitness with the help of a trained professional.
Why Facet is your partner in wellness
At Facet, we believe that financial health is a journey, not a destination. That's why we don't just hand you a static document and send you on your way. We pair you with a CFP® professional who works with you continuously to adjust your roadmap as your life changes.
Our flat-fee membership model means we don't charge commissions on your investments, so our advice is objective and focused on your well-being. We're here to help you feel confident, controlled, and ready to enjoy life today while building for tomorrow.
