What is Financial Wellness?

Financial wellness is achievable at any stage of your life. Read our tips to help you get started.

A happy couple smiles together knowing they have achieved financial wellness

When you think of wellness, you might think about staying fit, eating nutritious foods and practicing mindfulness. But there’s one additional element that affects wellness: your finances.

What is financial wellness?

According to Forbes, there are four parts to financial wellness:

  1. Managing short-term finances (creating a spending plan, sticking to it, and gradually increasing your income)
  2. Managing long-term finances (saving and investing for bigger goals like buying a home or retirement)
  3. Improving present financial freedom (feeling like you’re in control of your financial situation)
  4. Achieving future financial freedom (retirement planning, following through on plans for your long-term financial goals)

Much like physical or mental wellness, financial wellness involves setting goals and taking action to put yourself in a good place where you are healthy and in control.

Financial wellness vs. financial literacy

They go hand in hand, but they are not the same. Financial literacy is understanding the concepts and tools you can use to manage your money. Financial literacy is acquired over time, by learning from trusted financial resources and advisors available to you. Your level of financial literacy is constantly evolving as you go through various stages of life. Don’t feel like you have to have all the answers right now. Just keep learning and growing and asking questions!

Have a spending plan

The first step to feeling good about your finances is having a plan in place. Many people like to use the 50/30/20 rule:

  • 50% to needs
  • 30% to wants
  • 20% to long-term savings

Here’s a handy calculator that will help you seamlessly integrate this spending plan into your daily life.

Get out of debt

Rather than feeling bad about being in debt, how about planning to get out of debt? It’s totally achievable. Start out with this virtual debt coach for immediate guidance.

If you want to talk with someone in person, UW Credit Union offers free, no obligation Credit Consultations to help you make an organized plan for your finances. Schedule an appointment online today.

If you’re still feeling overwhelmed, GreenPath provides debt counseling and debt management plans, as well as webinars, a podcast and a blog that can serve as handy resources.

Save, save and save some more

We cannot stress enough the power of saving for your short-term and long-term goals and having an emergency savings fund in case of unexpected mishaps that crop up (car breaks down, a medical issue stacks up bills, etc.). Here are some steps to savings success:

Start here

Feeling a bit overwhelmed and not sure where to start? Take this free financial wellness assessment as a jumping-off point to help you determine your individual path to financial wellness. Because everyone’s journey is different.

UW Credit Union is a financially strong institution, committed to providing financial education and supporting our members and communities in building their financial well-being. We offer free learning seminars, confidential credit consultations and, through our partnership with Banzai, an impressive catalog of financial education resources.

Here for Every You. 

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