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Do You Need Financial Wellness?

Financial wellness allows you to live the life you’ve earned, literally. When you manage your money well, you can have shelter, food, clothing, and participate in the broader economy you have helped create. Financial wellness is a broad term that encompasses these key areas:

  • Taking control of your money before it controls you.
  • Balancing competing needs to keep your money both safe and accessible while growing it.
  • Planning to meet future needs and desires.

 

Financial wellness has become a top concern for many people, especially those unprepared for short-term cash needs. Two people with the same income can differ in financial wellness. There are five things to remember about financial wellness:

  1. Keep your money where it’s both accessible in the short-term and productive in the long-term. Financial wellness prepares you for short-term and long-term expenses and emergencies.
  2. When your money comes in, pay yourself first by putting aside a dedicated amount for savings and investments. Budgeting underpins financial wellness.
  3. Plan for the life you want to live. Financial wellness requires making decisions about your present expenses and your future goals.
  4. Understand how your credit score works. Financial wellness includes your use of  credit.
  5. Prepare for the unexpected, such as death or disability, with insurance. Insurance coverage can  be critical to maintaining financial wellness and should be customized.

 

Evaluating one’s financial wellness can be difficult. The CFPB financial well-being survey is an excellent place to start to see how you compare to other Americans. The survey website additionally provides resources to help you improve your financial health.

When it comes to financial wellness, self-evaluation and education can help you to become financially strong. A financial professional can be a teammate who assists you in meeting your goals.

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.

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