Amongst an array of words and phrases surfacing in day-to-day conversations, financial well-being comes up quite rarely. Why is that? While the reason may lie in a mere lack of awareness, not getting acquainted with financial advisory and planning may be detrimental to your financial future.
Like mental and physical well-being, financial well-being is another key aspect of life that dictates our decision-making abilities. Financial well-being extends to being more than just saving, investing, and managing debt or credit. It also involves having the knowledge, skills, and resources for effective financial planning and analysis.
From the time an individual starts earning their own money, it becomes integral for them to contemplate their financial goals. Being financially secure can bring many benefits to an individual in the later stages of life. These benefits entail peace of mind, tax optimization, and access to retirement income.
There are several ways of achieving financial well-being other than the obvious – saving and investing.
- Know your numbers: Assessing your current financial standing is integral to achieving financial well-being. Remember, your net worth doesn’t determine your self-worth. What you have now can grow or wilt in a few significant financial decisions. Always log where your money is coming from and where it’s going.
- Set priorities: If you’re blessed with a million dollars someday and are already in debt, spending that money on something materialistic won’t make sense when you have a financial commitment to abide by. It’s best to know your financial commitments and prioritise them over any materialistic attraction that can be heavy for your bank account.
- Be open about your plans with your partner: Transparency should follow along at any place where money is involved. If you share your finances with your spouse or a corporate partner, it’s essential that you mutually draw clear lines of dos and don’ts. Do not hesitate to discuss your plans with your partner before making any decision involving their contribution. Likewise, encourage your partner to stay vocal about their thoughts, aspirations, and financial commitments. Even if you plan to segregate your finances later, the process would be much more straightforward.
- Stay updated: With market trends emerging with every click of the second’s needle, you must find reliable sources of information. By doing so, you can rest assured that factual data and evidence back up your financial strategies.
- Work with a certified financial planner or advisor: Financial wellness is not an alienated term in finance. This is why some professionals dedicate their careers to helping individuals attain financial freedom. For instance, platforms like 1 Finance have certified financial advisors that can help you get a step closer to your financial goals.
The Bottom Line:
Other than saving, spending, and investing mindfully, staying updated with the latest market trends is important to identify opportunities for financial growth. One key aspect that must be considered is the ability to prioritise your financial goals. Feel free to reach out to financial advisory services if you’re ever in doubt about your financial future. Certified financial advisors can provide hyper-personalised guidance based on a quick financial assessment.