What Is Financial Well-Being?
Financial well-being is a state of being wherein a person can fully meet current and ongoing financial obligations, can feel secure in their financial future and is able to make choices that allow them to enjoy life.
We frequently stumble through life trying to strike a balance between day-to-day financial management and long-term financial planning. Understanding the four “pillars” of financial wellbeing can start this “journey,” even if it takes time to achieve this financial equilibrium. It will put you back in charge of your finances, teach you more about money, and put you on the right track to better financial health.
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It is not difficult to achieve financial well-being if you adhere to a few strategies and remain committed. To avoid financial distress, we all work hard, save money, and make smart financial decisions. However, in order to live a peaceful life, we need to be financially and physically healthy. To live this way of life, you need to be financially healthy, and there are a lot of ways to stay on track with your goals. Read on to find how to accomplish and keep up with monetary wellbeing to carry on with a satisfying life.
The four pillars of financial well-being are:
- Having a positive attitude and a good relationship with money.
- Having clear strategies for achieving your objectives.
- Regaining financial control over your day-to-day life.
- Being able to weather financial storms.
How to Increase Your Financial Well-Being
To help people achieve financial peace of mind, confidence, and a state of well-being, we at Capital One encourage individuals to develop financial goals around four key interrelated areas: spending, saving, borrowing, and planning.
Spending
One of the most important goals in money management is to keep track of what you earn and spend each month because “knowing is half the battle.” You should be aware of your income and keep track of your spending so you can determine when and how much you need to adjust your spending. By grouping your recurring, fixed bills with your discretionary, variable spending, you can organize more effectively. You’ll be able to make adjustments before it’s too late if you know what your typical monthly discretionary spending is and keep track of it on a daily or weekly basis.
You’ve probably heard the saying, “Live within your means,” which means that your monthly expenses should be less than your income. This advice still holds true today, and if you want to save more, there is a specific step you can take to better control your spending. It’s important to take a step back, look at your previous financial decisions, and figure out where or when you might be spending too much money relative to your goals. It’s useful to grasp your perspective when you spend, so you can be more designated in changing your spending designs.
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Planning
Planning is essential because many of life’s most enjoyable things require financial planning. Making the commitment to planning can unleash a level of security and freedom that will serve you in the present and the future, from going to college to getting married to planning for major life events like starting a family, buying a home, or aiming for retirement. However, many people delay planning.
Benefiting from your cash begins with grasping the interrelationship of each and every monetary choice and occasion in your life – which incorporates future life altering situations. Possibilities begin to appear in places you might not have previously noticed them if you have a plan and the power of perspective. You can achieve your life’s objectives more quickly and become more of the person you really want to be if you have a financial plan in place.
Read: Managing Your Personal Finances: 9 Managing Money Tips
Borrowing
Strategic borrowing is essential when borrowing money. One of the most immediate and convenient ways for consumers to borrow money is with credit cards. However, credit cards’ ease of use can be tempting and we tend to spend more than we have. It is essential to only borrow what you can afford to pay back.
Read: How to Get Out of Credit Card Debt- Step by Step Guide
Saving
If the pandemic taught us anything, it was that financial crises are inevitable and that we must prepare for them. Despite the fact that overall consumer debt fell last year as a result of lower spending, 56% of Millennials increased their credit card debt during the pandemic. Why is this? Millennials were the least likely to have adequate emergency savings and the most likely to have had their income compromised.
Saving involves setting aside money today to prepare for the future – both the short- and long-term. We recommend that people keep the savings habits they developed during COVID-19 and/or make it a priority to create a financial safety net. Savings are meant to help you and your family avoid losing your financial security or delaying your long-term goals in the event of an unexpected event, at least in part.
The good news is that there are a lot of ways to save, even if money is tight, so that you can make the most of every penny you earn. You can start saving for your future with the help of Money Club. Money Club is not only a platform to provide you a systematic saving scheme, but we make sure that you have an easy access to your savings and the flexibility to borrow much larger sums, when you need it the most. Our goal is to assist individuals throughout India with their financial issues.
Read: How Saving Money Becomes Easy With The Help of Community?
First Ever Social CommunityTo Help Members Support One Another Financially.
Benefits Of Joining Money Club
- It is the best platform for middle-class families who cannot obtain loans in an emergency and must rely on high-interest money lenders. With the Money Club platform you can quickly receive a lump sum amount in an emergency if you regularly save small amounts on this platform.
- You join a group of verified friends and pool money with them.
- You can borrow a sum several times greater than the amount you have invested.
- When you need money, you just have to bid, and the money is in your bank account in six to eight hours.
- All transactions are digital. Members of the club deposit funds into your bank account directly. The money does not lie with the organizer.
- You can earn money from home. If you sign up to be a Money Club agent and recommend to 20 of your friends and family, you could win Rs 20,000.
- You can earn 10% to 15% interest on your investment, whereas FDs and RDs in banks may only give you 4% to 6% interest.
Read: Know Your Money Club platform Journey On The Money Club App
