Money is not a simple topic to broach for many people – and indeed, for some, it can be a particularly sore point. Managing finances can seem like busy work to some, or a stressful experience best ignored by others. But there are numerous benefits to reining in your finances and making financial well-being a central priority; what are they?
Financial Wellbeing – Why You Should Make It a Priority?
Stress Reduction
Working towards financial well-being can be essential for your mental health, especially in trying times. Managing a household or even just managing your own life can be stressful even at the best of times, between regular bills and costs and those last-minute surprise payments – to say nothing of the current inflation crisis plaguing grocery price lists and energy costs nationally.
Living from payslip to payslip adds undue stress to this delicate balance – stress that can be avoided by proper financial planning. With a comprehensive budget that looks into your active and passive income and outgoings, you can build a clearer picture of your financial situation and capabilities. Adhering to some simple savings commitments can build your emergency fund, and lighten the load when the going gets tough. The end result: a calmer, happier you.
Purpose and Drive
Adopting financial well-being as a central goal can help provide you with vital structure, in two specific ways. One is the rigour of the budget, as examined above; budgeting is important and it can help free up money for emergencies or luxury expenditures.
The other comes in the form of a savings goal. Depending on your definition of financial well-being, you might be aiming to own property by a certain age, or even retire entirely. Whatever the central goal, it is one that gives you purpose and drive as well as a comfortable end result.
Securing a Future
That end result might be a life lived within your means, or with a certain amount of luxury. Retirement planning is centred around shoring up funding for your ideal lifestyle, though this is not your only concern when it comes to financial well-being.
There is also the matter of your loved ones, who will receive your financial legacy as part of your real estate when you pass on. The management of your finances and assets prior to your death is estate planning and can be used to reduce the impact of taxation on your loved ones when your will is executed. In this way, careful financial planning is not just providing you with a comfortable future, but also your loved ones.
Control
Lastly, and perhaps most simply of all, financial well-being gives you complete control over your life and trajectory. The more careful you are with your money; the more able you are to act on your own whims and desires, within reason and budget. This level of control over your lifestyle can make for a comfortable short-term just as much as a comfortable life in the long run.