What is financial wellbeing?
We live in the age of wellbeing. We’re consistently told to take care of our physical wellbeing, our mental wellbeing, our social wellbeing, our emotional wellbeing and… well, the list goes on.
But there’s one type of wellbeing that is rarely mentioned, despite its enormous importance: financial wellbeing.
The US Federal Consumer Financial Protection Bureau defines financial well-being as:
“A state of being in which a person can fully meet current and ongoing financial obligations, feels secure in their financial future, and can make choices that allow enjoyment in life.”
Just like with any of the other wellbeings, financial wellbeing is a state of contentment, comfort and security. It’s the feeling that you’re in control of your money and have the freedom to make your own financial choices.
It isn’t necessarily about feeling like you have lots of disposable income, but rather that you feel confident that you can meet your day-to-day financial needs.
The state of financial wellbeing looks different to everyone, because most money matters are relative, so don’t think of financial wellbeing as having lots of spare money, because you don’t have to have lots of money to feel financially well.
Why is it important?
Your financial wellbeing matters because it has the potential to impact all the other elements in your life. You don’t need lots of money, but you do need enough money – enough to choose to work in a job you enjoy, enough to make healthy eating and exercise choices, enough to decide when you need a break to spend time with friends, family or alone, enough to put aside in the knowledge you won’t need to access until you decide you want to make a change, whether that is to move, start a family or maybe even to retire.
Financial wellness isn’t just about getting out of debt and having a pension, though these are important factors, of course. Instead, it’s about having a plan that covers today’s spending as well as all the expected, and some unexpected, twists and turns in your journey from today until then.
Knowing you have enough for today and enough for whatever might come with tomorrow is the heart of financial wellness. Keeping that heart pumping means being engaged with your money and having a plan, knowing what you can afford, and what you might need to afford in the future.
This is one of the main reasons why Dozens was built: to promote our customers' financial wellness and make sure that our success is connected with yours - today, tomorrow and in the future.
Join us in the We Are Dozens community to explore how the Dozens app has been built to help you meet your personal financial wellness goals.