Financial Wellbeing

Financial health is not the same as financial wellbeing ( Dr Ben Hoffman, GMD BHGE).

The ideas are not completely disconnected of course, but whereas financial health typically focuses on the amount of money (and other assets) one has, financial wellbeing focuses more on how we think about money in the broader context of our lives. We all know people with modest financial resources who we would consider to be very happy and fulfilled; and conversely, we know people who have a lot of resources, and who seem perpetually miserable. That contrast speaks to the difference between financial health and financial wellbeing.

Money can buy happiness and time, but there’s a catch. We can use money to satisfy our desires for a wide array of things, from cars to clothes to upgraded finishes in our homes. Such purchases often make us happy or give us a sense of satisfaction, but research shows that such happiness is typically short-lived. We can also use money to buy time. We can purchase services so we don’t have to grocery shop, do home repairs or do just about anything else we don’t want to do or have time to do. For busy people, it seems obvious that more time is a good thing, but the next question needs to be asked: What are we doing with the time we’re buying? Sure, we can save time by having our food delivered, but if we don’t use the time saved to engage with each other in a way that strengthens our relationships while we eat, what’s the point?