Money issues are a top stressor for Americans. Yet, with a little planning, finances can be a source of optimism and contribute to your holistic well-being.
5 pillars of financial well-being
1. Make money a source of optimism, not stress
Instead of being a burden, your finances should be a way to reach your goals. Start small, like saving a few hundred dollars over a couple months. Then work your way up.
2. Your income lets you live comfortably
Each of us has our own lifestyle. Being financially well means having enough disposable income to carry on, plus have some left over to save and invest.
3. You have low or no debt
Taking out loans is OK, especially if you have a plan for quick repayment. Still, be careful not to borrow more than you need and don’t forget about interest rates and fees.
4. You are ready for emergencies
We never know when life might take an unexpected turn. Emergency funds can keep you afloat for three to six months—enough time to find new jobs, new places to live or make new budgets.
5. You make smart financial choices
Vacations, weddings, new cars, homes, having children and retirement all come with significant costs. Being prepared to reach your goals can be as simple as setting aside $100-$200 a month or contributing to your 401(k) through work.
Talk with an advisor
Just as a doctor checks your well-being, so can a financial advisor at your bank. In fact, 7 in 10 Americans who see a financial advisor say they have clarity on spending versus saving. Advisors can offer budgeting and investment guidance or connect you with help if you’re facing a financial setback.
