Money is the biggest area of stress for over 44% of Americans. Financial wellness is difficult to achieve due to inflation, the current cost of living compared to income, and the lack of knowledge that society has on money and financials. Growing your financial knowledge will help you make healthy decisions when spending money and manifesting abundance. Splurging on something you see is okay every now and then but when you have an understanding of what your money is worth and how far it can get you, you are more likely to value you it and make smarter decisions with it.

Financial wellness isn’t about being rich, it’s about being content with what you have and understanding what needs to be done to accomplish your financial goals. Financial freedom allows you to live the life you want to live. There is a huge difference between being rich and being wealthy and when wealth is your purpose and drive, you are more likely to succeed in your financial life. Money is all about perspective and that value that you place on your money will determine your likelihood to grow wealth or not.

Money Mindset

Your money mindset is one of the most pivotal things when it comes to finances. How you see money, talk about money, and care for your money will determine how successful you are financially. It is so important to understand that the money you have now will not be the only money you will ever have. Shifting your mindset from one of scarcity to one of abundance is one of the greatest mental shifts you can make. With money being such a topic of stress, it’s easy to get wrapped up in the mentality of “never having enough.”

The way that you talk about money will likely indicate your success with it. If you allow it to drive your life and dictate your happiness, you’ll never be content with what you have. It’s crucial to financial wellness to have a healthy relationship with your financials. You must have purpose and meaning in all that you make. If you don’t set boundaries with money, you’ll never truly value you. If you are not happy during times without money, then it is likely that you won’t be happy when you do have it. You must be able and willing to invite in abundance and work for all that you have. Money won’t just come to you and it will be even more difficult to obtain it with a negative mindset.

Budgeting

Budgeting is a wonderful tool to help you manage money. Budgeting doesn’t work for everyone and there are various ways to do. This makes saving money easier and helps you understand the value of what you have. It doesn’t have to be a complicated process that brings stress to your life. The purpose of creating a budget is to reduce stress. Though it may seem overwhelming at first, you’ll begin to adjust and reap the benefits. You have to shift the mindset from not being able to buy anything to valuing what you have. Until you make that mental shift, budgeting won’t ever work for you.

When you budget, it’s important to keep in mind any monthly payments you have, subscriptions, necessities, emergency fund, and then from there you can put in your wants and entertainment. A budget helps you plan how to spend money, track where your money is going, and improve your overall financials. A budget only works if you can and will stick to it. There are many apps nowadays that help you budget automatically. Budgeting helps you reach your financial goals and be smart about where your money goes.

Saving

Saving money helps reduce the likelihood of having to live paycheck to paycheck. This is a huge issue in today’s society. There are three types of savings that you should focus on having. The first is an emergency fund. This is for things that go wrong in life such as a car accident, huge medical expenses, etc. The second is a savings fund for important goals or things that you want to buy or go do in life. The third is a fund to help you retire and not have to work. Focusing on saving a little bit each month towards these three accounts will help you live a financially free life.

There are different ways to save money. there isn’t a “right” or “wrong” way to do it. Each person will develop a way of saving that works for them. I use an auto-save system so I never have to think about manually moving money to my savings account. This works well for me but may not for other people. It is beneficial to create detailed goals while working on saving money. Outline things such as when you will save the money by, how much you will save, what you will do to get there, and what you will do once you reach the goal. This will help keep you on track with accomplishing your financial goals.

Investing

Investments can be complicated to understand but very helpful to achieve financial wellness. I’m not an accountant and I’m not a financial advisor but if I can tell you anything, it’s to invest. Invest as often as you can because this will allow your money to passively grow without even having to think about it. Investment accounts are kind of like a savings account that you rarely have to think about. When you make long-term investments, inflation generally grows your money to make a much higher return than what you put in.

Investments can be risky because there’s always a risk of losing money and/or not making a return. It’s important to understand what you are investing in and how likely it is to make your money back, and then some. Speaking with financial advisors can help you understand how investing works, where to invest, and how to understand if something is a good investment or not. many retirement funds are based on investing. These are some of the most important investments you can make because it’s investing in your retirement and future. Many places of employment offer these kinds of investments and even contribute to them. Ask your employers about your benefits and retirement options and get a head start on investing today!