What is Financial Wellness?

What is financial wellness- key tips to practicing financial wellness

What Is Financial Wellness? 

When most financial experts use the term “financial wellness,” what they are describing is a life without financial stress where you also have a nest egg of savings and investing practices that will help provide long-term financial security. It’s a term that refers to the overall well-being of an individual’s finances. If you are currently experiencing financial stress or money problems, the idea of financial wellness may seem very out of reach. However, there is no better time than now to start improving your financial situation. 

Financial wellness doesn’t happen overnight, especially if you are just starting your career, trying to complete your education, or stuck under a mountain of debt. However, there are always ways to improve your situation, even if you must start with just a few small changes to your current situation. 

If you have an immediate cash problem and need a short-term loan, it might be time to talk to LendNation about what loans are available for you. Our loan options can help you pay for a car repair, medical expense, or other financial emergencies you may be experiencing. 

Why Is Financial Wellness Important? 

There’s a saying that money isn’t everything. And while that may be true, having it sure makes life easier in a lot of ways. Financial wellness provides us with a sense of comfort that we can only dream about when we are experiencing money problems. When you have a good budget plan, savings, and long-term investing, it makes it easier to focus on living our lives the way we want.  

Financial wellness also allows you to do the things you daydream about: traveling, starting a business, paying for college, building your dream home, raising kids comfortably – the list goes on and on. 

What Are the Different Elements of Financial Wellness? 

To start working toward financial wellness, there are a handful of elements that are important to understand and manage. It includes spending and savings habits, long-term planning, and the ability to pursue larger financial goals. Let’s look at financial wellness elements to work on to better achieve financial wellness. 

Financial Well Being Tips 

  1. Spending and budgeting. Managing your everyday expenses with a budget is the first step toward financial wellness. Track your spending, savings, and investing habits to get fully dialed into a “wellness” mindset. By tracking these details, you will be able to identify areas where you can cut back or save each month.  
  2. Savings. With the extra savings, you will start to find each month with a budget, you can start to re-allocate this to a savings account or getting ahead with paying down debt. This new fund can now work as an emergency fund to help you be better prepared for unplanned expenses. 
  3. Planning. While you may not have them yet, creating financial goals and setting a plan to reach these goals is important. These can be short term or long-term goals such as paying off a credit card, paying off student debt, or saving up for a down payment on a home. Whatever your goals are, make sure your plan has specific steps to help you reach it. 
  4. Debt management. While some debt is simply unavoidable, wisely managing your debt is achievable. Make sure to pay off debt in a timely manner and be careful of high-interest rates. 
  5. Long-term investing. While it might be hard to think about now as you are just getting started on becoming better financially stable, it’s never too early (or late) to get started on investments. Investing can help you in times of need and set you up to have a successful financial future. 

We also recommend speaking with a financial advisor who can help you put together a roadmap to financial wellness based on your specific situation.  

How to Practice Financial Wellness 

The best way to start practicing financial wellness can be as simple as creating a budget. Until you take an honest look at your finances, you will not have a realistic idea of how you can achieve financial freedom. From there, you can start to analyze purchases, from groceries to dining out to monthly subscription services, to determine what areas you can trim, and which ones are essential. 

Once you get into a rhythm of responsible spending and saving every month, and build up small savings for emergencies, you can start putting a little money into a retirement account. Be sure to speak with your employer about 401k matching opportunities. And if you are currently submitting your resume for new jobs, be sure to compare the benefit plans each employer offers. For example, getting an employer-paid health insurance plan could save you hundreds of dollars each month that could go into your savings or retirement account. 

And don’t overlook the power of incremental savings on a day-to-day level. Pay attention to grocery costs and try to always buy on sale. When you go out to eat, look for daily specials or socialize during happy hour to cut your entertainment budget in half. You can also start new traditions, such as potluck dinners with friends, who are also trying to save for their futures.   

Additional Resources for Financial Wellness 

Our blog resource section has several articles that can help you set smart financial goals that are achievable. We also recommend checking out some books, podcasts, and apps that keep you in a money-smart mindset on a daily basis. 

Apply for a LendNation Loan Online 

Are you stuck in the middle of a cash crunch and need a quick loan? LendNation specializes in short-term loan services. We make it simple to apply, and your cash loan is transferred to your account within 30 minutes of approval. If you are ready to move past your money problems and achieve financial wellness, apply now for a loan with LendNation!