In most cases, when people think about wellness, the first thoughts that come to mind surround health, exercise, and nutrition. However, there are technically eight dimensions of wellness. According to the Substance Abuse and Mental Health Services Administration (SAMHSA), the eight defined wellness dimensions are occupational, social, emotional, intellectual, spiritual, environmental, and financial. Consider the following ways that financial health is paramount to the full circle of wellness.
1. Living Within Means
Living within your means is a concept that’s often spoken about, but never fully prioritized in a serious manner. Because the world runs on credit, it’s really easy for people to live on it as well. If they run out of cash, they simply use the credit card to the limit. When you’re developing a next-level conversation surrounding your financial health, it starts with living in your means. It’s as simple as learning to be disciplined. It’s about learning to say no to items you just don’t need. When you sacrifice and remain disciplined in the short term, you can enjoy a different financial experience in the long run.
2. Investments
It is supremely exhausting to imagine working more than forty hours a week in order to provide for yourself, your household, and the future. Even the person who has a corporate job that allows them to earn six figures can’t work without an end. After all, the energy of human beings is finite. This is one of the main reasons why passive income is such an important area to develop. When you’re talking about financial health, passive income streams are paramount because you can’t work yourself into oblivion. Income streams that work for you while you’re asleep will help you move the needle tremendously. Passive income streams include investing in various ways. Invest in stocks, foreign exchange currencies, and real estate. Learn about ways to invest with little to no money. Where there is a will, there is a way.
3. Goal-Setting
When financial wellness is one of your goals, you have to create an achievable plan. If you don’t create actionable steps within a specific plan for your financial wellness goals, your goal will simply remain a dream. Instead of trying to become a millionaire within the next year, consider practical steps in order to develop multiple income streams. Create a plan in order to get out of debt quickly. Take an honest look at where you can improve, and implement action steps you can realistically stick with.
4. Emergencies & Needs
Though you might not be able to know about an unexpected emergency until it happens, there are ways you can financially prepare for it. Start by implementing steps to quickly develop a fully-funded emergency fund. Start with $1,000. As you continue to work on your other financial goals, you can also continue to place a percentage of your income into that emergency fund until it’s funded with at least a year’s worth of living expenses. When you have that amount set aside, you’ll naturally breathe a little easier because you know that you’re financially covered and protected. It’s also important to make sure you have the right insurance coverage and policies in place.
5. Community Awareness & Benevolence
A major part of financial wellness involves becoming aware of the situations involving those around you. If you’re the wealthiest person in your circle, there’s something wrong. Everyone should be able to support, teach, and elevate each other. There are practical ways that you can encourage financial wellness as you’re working to achieve it for yourself. You can mentor young students. You can invest in small businesses. Facilitate programs that allow entrepreneurs, community leaders, and activists to come together in order and network, learn about each other’s initiatives and support.
6. Opportunities
There are countless opportunities in the world. You just have to be ready for them. You’ll also need to be vigilant in being able to recognize them. If there’s an opening at your job, apply for it. If you want to climb the corporate ladder, discover the education and experience you’ll need in order to navigate your professional elevation. This can lead you to financial freedom.
If you’re in a position where you’ve simply assumed that financial wellness isn’t possible, know that it is. Anything is possible with a defined plan, education, and strategy. Begin to read and inform yourself. Find simple practices that you can include in your daily routine in order to achieve financial wellness. With consistency, determination, and the right opportunities, financial health is possible.
