Have you ever decided not to sign up for a course, to cancel a trip, or to not send your children to a better school simply because you felt afraid that you’d run out of money? This could be a sign that you don’t have a good level of financial well-being… yet.
Luckily, it’s something you can work towards. But what exactly is financial well-being, and how can you achieve it to have a more fulfilling life, feel better about yourself and your future, and become more confident and secure? Let’s find out:
What is Financial Well-being?
Financial well-being is the ability to meet your current and ongoing financial obligations, feel confident in your financial future, and have the freedom to make choices that contribute to your overall happiness.
In simple terms, financial well-being means being in control of your money in the short and long term.
However, traditional definitions of financial well-being go beyond meeting financial obligations to include mental and spiritual health. Life is not just about making money to achieve financial well-being. It’s about finding balance and purpose in all areas of life.
This is where the concept of ‘Ikigai’ comes in. Ikigai is a Japanese term that translates to ‘a reason for being’ or ‘a sense of purpose in life.’ It involves identifying your passions, values, and talents to find fulfillment and satisfaction in life.
What does Ikigai mean for you?
In short, it means finding a profession you excel at and love doing. At the same time, it should provide something of value that people are willing to pay for. Once you have that, it’s a straightforward path to achieving financial well-being.
Why is It Important to Work on Your Financial Well-being?
You probably realize the road to achieving good financial well-being can be long and bumpy. That’s why it’s essential to understand why putting in so much effort is necessary to achieve it.
Spoiler alert—financial well-being is not just about being able to cover your rent on time. Let’s explore all the reasons why financial well-being is important.
- Achieving financial goals: You can save for retirement, buy a home, or start a business.
- Managing financial stress: By working on your financial well-being, you can reduce stress and improve your overall well-being.
- Building an emergency fund: Unexpected expenses can arise at any time, and having an emergency fund can help you manage these expenses without going into debt.
- Developing good financial habits: Working on your financial well-being can help you develop good financial habits such as budgeting, saving, and investing.
- Avoiding debt: Debt can be a significant source of stress and negatively impact your financial well-being. By working on your financial well-being, you can avoid debt or pay off existing loans, leading to a more stable financial future.
- Creating financial freedom: Financial well-being can give you the freedom to make choices that align with your values and passions. It can provide opportunities to travel, pursue hobbies, and spend time with loved ones without financial stress.
Financial well-being in a nutshell
Achieving financial well-being will give you more control over your finances, alleviate financial stress, and result in a happier life.
There are many reasons to strive for financial well-being beyond just achieving financial goals. It’s also about developing healthy financial planning habits and gaining more freedom in leading your life on your terms.
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