Moving Towards Financial Wellness

Financial wellness involves learning how to successfully manage one's finances in order to avoid unnecessary stress. Whether we admit it or not, money plays a critical role in our lives. Not having enough of it, or not managing it effectively, impacts health as well as work performance. Financial stress is a common source of anxiety and fear. Here are a few basic steps to strengthen your financial wellness.                                                     

1.     Keep Score: Knowing what you make versus what you spend is critical. Compare your monthly net income to your list of monthly expenditures. If the number is negative consider re-prioritizing. Maybe you don't need three gym memberships or DirecTVs titanium package.

2.     Manage Credit: If you're having trouble gaining control of your credit cards debt consider utilizing Excel. “How to Calculate Credit Card Payments” in Excel by wikiHow gives 10 easy steps to paying off credit cards.  Eradicating debt is easier than you think. 

3.     Plan for the Future: Knowing there's a light at the end of your financial tunnel can also reduce stress. Make sure you have adequate liquid reserves. Six months of lifestyle income is optimal. If you have retirement plans available to you, do your best to contribute the maximum, and take full advantage of any employer matching. Finally, review your insurance policies and determine if the coverage you have is adequate and that the premiums are not unnecessarily expensive.  

4.    Rinse and Repeat: Meet with your advisor regularly to review your progress in each of these areas and make whatever adjustments are necessary to both your short and long-term success.