A person’s financial well-being extends beyond their material goods or level of wealth. It includes having a comprehensive sense of stability and financial security as well as the capacity to comfortably satisfy present and future requirements. It’s about taking charge of your money instead of allowing it dominate you.
Everyone deserves to feel financially well and have a positive connection with money, but for many of us, it can be difficult to know where to begin.
In order to achieve financial wellness, Neil McLaughlin, group head of personal and commercial banking at Royal Bank of Canada, says we must first define it and then increase our awareness of it in order to enable us to make better financial decisions.
Three questions are answered by McLaughlin to help us get started on our own financial well-being journeys.
What does financial well-being really mean?
Your personal relationship with money and how it affects your life are crucial to your financial wellbeing. It goes beyond simply being wealthy. It covers all the elements that have an impact on your financial management, including your income, cash flow, and debts. It entails making decisions that will enable you to accumulate enough money to support your current demands as well as your future ambitions.
Why does it matter?
Financial well-being is more significant than just the amount of money in your bank account. It affects your capacity to make decisions that are consistent with your personal beliefs and life goals, as well as your relationships and mental health. Less financial stress can result in better sleep, more vitality, and more general mental and emotional health in those who are financially well-off.
What should I do next?
Make sure you do your homework and seek out resources and tools from reputable financial institutions. Whether you are just starting out, want to develop a positive money mindset, or need information to help you reach a particular financial objective like debt management, home ownership, or retirement savings, having access to resources that simplify complicated financial ideas into easily understood, doable steps can be helpful.
While each person’s financial journey is unique, you may reduce stress, boost your self-esteem, and cultivate a positive connection with money by making steps towards financial wellbeing.
Learn more at https://newscanada.com/en/financial-wellbeing-e2-80-93-what-it-is-and-why-you-should-care-139105
