We often hear about physical and mental wellbeing, but financial wellbeing, not so much. Just like your mental and physical wellbeing, your financial wellbeing can have an impact on your health. Those who are not financially secure can be stressed, undernourished and live in poor conditions, all of which has an inevitable impact on our health.
The topic of financial wellbeing is particularly pertinent giving the ongoing coronavirus crisis and the devastating impact it is having on so many people’s lives. In this article, we’ll explain what financial wellbeing is and look at a few simple ways that you can boost yours.
What is financial wellbeing?
Financial wellbeing is the sense of security and peace of mind that comes from knowing that you have enough money to pay your rent or mortgage, buy food for the family and live a relatively comfortable life. Not having to worry about your day-to-day finances gives you the freedom to make decisions and enjoy your life.
A recent report by the short term loans lender Wonga examined various levels of financial wellbeing in South Africa. It found that South Africans were more focused on keeping a roof over their heads than they were saving for the future. That’s a sign of low levels of financial wellbeing, with people forced to think about how they’re going to pay their bills rather than being able to plan for their future.
3 steps to improving your financial wellbeing
- Avoid income comparisons
Comparing your financial situation with your friends and peers is one of the most common ways of reducing your financial wellbeing. Rather than comparing your situation with others and thinking about what you don’t have i.e. a big house or an expensive car, thinking about the positives of your situation, such as being able to travel or having a large family, can rewire your brain structure and give you a feeling of well being and contentment.
- Take control of your situation
The greatest fear is the fear of the unknown. The feeling of not being in control of your finances and not knowing how you’ll survive from one day to the next can be incredibly stressful. Even if your financial situation is precarious, knowing exactly how much money you have coming in and the expenses you need to cover will provide a boost to your financial wellbeing. It also increases your confidence and gives you a solid platform to work from to start improving your situation.
- Spend wisely
Overspending is a very easy habit to get into. Even something as simple as going to the supermarket when you’re hungry can cause you to spend more money than you need to. No matter how big or small your budget is, you need to learn your limits and spend wisely. That means focusing your money on the essentials first of all. Only then should you consider the discretionary or non essential expenditure such as takeaways and nights out, which will bring you pleasure but that you could also live without.
What steps have you taken to boost your financial wellbeing? Please share your tips with readers in the comments section below.
Smriti Jain is the owner and senior content publisher at Financesmarti. Financesmarti is a website where she shares a lot of useful stuff for the people and business of India. This includes small business ideas and other banking information, as well. Smriti completed her education in science & technology from Delhi University. Smriti usually has interests in digital marketing now, and she has chosen this career for the full-time opportunity. The primary purpose of starting this blog to provide quality information on the banking industry to the people.