Financial wellness: what it is, benefits, and 10 ways to get there — Calm Blog (2024)

Mental Health

Written By Calm Editorial Team

Financial wellness: what it is, benefits, and 10 ways to get there — Calm Blog (2)

Clinically reviewed by Dr. Chris Mosunic, PhD, RD, CDCES, MBA

Learn what financial wellness is, why it's important, and how it can improve your overall wellbeing. Plus, 10 tips to guide and improve your financial wellness.

We often focus on physical health, mental clarity, or emotional stability when we think about our wellbeing. But there's another area that's also important, and that’s financial wellness. No matter the size of your savings account, the relationship you have with money can affect every facet of your life.

Financial wellness is about understanding and managing your financial situation effectively and making informed decisions that align with your personal goals and values. When you know you’re in control of your finances, you can find a sense of security and even peace.

What is financial wellness?

Financial wellness is a holistic term that encompasses your relationship with money and how it impacts your life. It's not just about how much you earn but how you manage and think about your finances. Achieving financial wellness means you're not constantly stressed about money. Instead, you have a clear understanding and a sound plan for managing it.

By understanding and striving for financial wellness, you make a commitment to your overall wellbeing that can bring a more balanced and fulfilling life.

Why is financial wellness important?

Financial wellness is important because financial stability can contribute to overall life satisfaction and security. Financial concerns don’t need to control you.

1. Handling your day-to-day finances

Effectively managing your regular expenses, such as groceries, utilities, and rent or mortgage payments, is the foundation of financial wellness. When you can comfortably cover these expenses, it can reduce daily stress and anxiety. This aspect of financial wellness ensures your basic needs are met without financial strain, allowing you to enjoy a more stable life.

2. Planning for your financial future

Looking ahead and preparing for the future can include working toward financial goals like buying a house, saving for your children’s education, or planning for retirement. When you have a plan for the future, you’ll be more resilient when faced with unexpected financial challenges.

3. Enhancing your current financial flexibility

Financial wellness also means having the flexibility to make choices that enhance your life right now. This could be the ability to travel, pursue a hobby or passion, or invest in personal development. Financial flexibility is about having the freedom to enjoy your life today, without sacrificing your future financial security.

4. Securing future financial independence

The ultimate goal of financial wellness is when you have enough resources to maintain your lifestyle in the future, especially post-retirement. Knowing you won’t be financially dependent on others in the future can provide peace of mind.

10 ways to help you attain financial wellness

Achieving financial wellness is a unique journey for everyone, but there are several steps that can guide you.

1. Understand your budget

Track your income and expenses to identify where your money goes each month. This awareness is important for making informed financial decisions and avoiding overspending.

💙 Suze Orman breaks down setting Financial Intentions and how to put your financial goals first.

2. Have an “emergencies only” fund

Life can be full of surprises, and not all of them are pleasant. An emergency fund acts as a financial safety net for unexpected expenses like medical bills or car repairs. Aim to save enough to cover three to six months of living expenses.

3. Protect yourself and your belongings with insurance

Insurance can be a key tool in protecting yourself from significant financial loss. Whether it's health, car, or home insurance, ensure you have coverage to save you from financial distress if unforeseen events occur.

💙 These four guided meditations from We Were Made for Times Like These are perfect for finding resilience amid tough times.

4. Build savings and invest wisely

Regularly set aside money into a savings account to help you build a financial cushion. Investing your savings wisely can help your money grow over time, contributing to your long-term financial security.

5. Reduce debt

High levels of debt can be a major obstacle to your financial wellness. Pay off high-interest debts first and avoid taking on unnecessary new debts. Consider strategies like debt consolidation or refinancing for more manageable repayment terms.

6. Plan for retirement

It’s never too early to start saving for retirement. Contribute to pension savings or a retirement account to ensure you have a stable financial future.

7. Explore your beliefs around money

Your attitude about money can significantly impact your financial behavior. Reflect on how your upbringing and experiences have shaped your financial mindset, and consider whether these beliefs are helping or hindering your financial wellness.

💙 Explore the urge to spend too much by learning about Compulsion in this guided meditation with Tamara Levitt.

8. Seek support

Money matters can be complex. Financial planners, advisors, or online resources can provide valuable professional advice and guidance tailored to your specific financial situation.

9. Stay informed

Keeping up-to-date with financial news and trends can help you make better financial decisions. Educate yourself on topics like interest rates, market trends, and new financial tools and products.

10. Practice mindful spending

Be conscious of your spending habits. Ask yourself if each purchase aligns with your financial goals and values. Mindful spending can help you avoid making impulsive purchases.

💙 Learn to navigate challenges with Mindfulness Tools with the U.S. Surgeon General Vivek Murthy.

Financial wellness FAQs

What are the 3 levels of financial wellbeing?

  1. Basic financial security: This is where your essential needs are met without financial strain. It means having enough income to cover daily expenses like housing, food, and transportation. Achieving this level of financial wellness can provide a foundation of stability and peace of mind.

  2. Financial safety: The second level of financial wellbeing involves having safeguards in place for unexpected financial shocks. This includes having an emergency fund, insurance policies, and no high-interest debt. Reaching this level means you're likely prepared for life's uncertainties and can handle financial emergencies without derailing your long-term goals.

  3. Financial freedom: The highest level, financial freedom, is where you have enough wealth to live comfortably and make choices that aren’t solely based on financial necessity. This might mean having the ability to retire early, travel, or engage in philanthropy. Achieving this level of financial wellbeing can offer enormous peace of mind and a sense of accomplishment.

How do you maintain financial wellness?

Regular budget reviews: Periodically assess your budget to ensure it aligns with your current financial situation and goals.

Consistent saving habits: Regularly set aside a portion of your income into savings or investment accounts.

Stay informed and adapt: Keep up-to-date with financial news and be ready to adjust your strategies in response to economic changes or personal life events.

Avoid unnecessary debt: Be cautious about taking on new debts, and prioritize paying off existing high-interest ones.

Continuous learning: Learn about financial management, investment opportunities, and retirement planning to make informed decisions.

Regular financial health checkups: Just like a regular health checkup, review your financial situation every now and then to ensure you’re on track to meet your goals.

What is the difference between financial wellbeing and financial wellness?

Financial wellbeing typically refers to the emotional aspect of finance, like how your financial situation makes you feel. Financial wellness, while similar, is often used to describe both the emotional and the practical aspects of finance. It includes effective management of your finances such as budgeting, saving, investing, and planning for the future, and how these actions make you feel.

How do I start being financially stable?

  1. Create a realistic budget: Start by understanding your income and expenses. Track your spending and set a budget that allows you to live within your means.

  2. Prioritize savings: Set aside a small percentage of your income into a savings account, gradually increasing it over time.

  3. Educate yourself about personal finance: Learn about different aspects of personal finance, including budgeting, saving, investing, and debt management.

  4. Reduce and manage debt: Aim to pay off high-interest debts first and avoid accruing new debt. Consider strategies like debt consolidation for more manageable repayments.

  5. Build an emergency fund: Aim to have savings that can cover at least three to six months of living expenses.

  6. Set short and long-term financial goals: Having clear goals can motivate you to stay on track with your financial plan.

Seek professional advice if needed: Consult a financial advisor for personalized advice tailored to your circ*mstances.

Calm your mind. Change your life.

Mental health is hard. Getting support doesn't have to be. The Calm app puts the tools to feel better in your back pocket, with personalized content to manage stress and anxiety, get better sleep, and feel more present in your life.

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How often do you meditate?

RegularlySometimesRarelyNever

`; // Replace with actual HTML content // Function to append HTML and add close functionality function appendHtmlAndAddCloseFunctionality(htmlSnippet, targetClass) { var targetElement = document.querySelector(targetClass); if (targetElement) { targetElement.insertAdjacentHTML('beforebegin', htmlSnippet); var closeButton = targetElement.previousElementSibling.querySelector('.quiz-close'); if (closeButton) { closeButton.addEventListener('click', function(event) { event.preventDefault(); targetElement.previousElementSibling.remove(); }); } } } // Append snippet 1 if (allowedUrlsSnippet1.includes(currentPath)) { appendHtmlAndAddCloseFunctionality(snippetHTML1, '.content'); } else if (allowedUrlsSnippet2.includes(currentPath)) { appendHtmlAndAddCloseFunctionality(snippetHTML2, '.content'); } else if (allowedUrlsSnippet3.includes(currentPath)) { appendHtmlAndAddCloseFunctionality(snippetHTML3, '.content'); } else if (currentPath.includes('journey-redirect')) { let meta = document.createElement('meta') meta.name = 'robots' meta.content = 'noindex' document.head.appendChild(meta) } else { appendHtmlAndAddCloseFunctionality(snippetHTML2, '.content') } // Quiz Flow Tracking Code // Function to extract a specific part of the URL slug function getSlugPart() { var path = window.location.pathname; // Get the pathname of the URL var slug = path.split('/').pop(); // Split the pathname by '/' and get the last part return slug || 'Unknown'; // Return the slug part or 'Unknown' if it's not available } // Function to set UTM parameters on elements with the class 'quiz-link' function setUTMParameters() { var slugPart = getSlugPart(); // Get the specific part of the slug var quizLinks = document.querySelectorAll('.quiz-link'); // Select all elements with the class 'quiz-link' quizLinks.forEach(function(link) { var originalUrl = link.href; var utmParameters = `utm_source=blog&utm_campaign=${encodeURIComponent(slugPart)}&utm_medium=organic`; // UTM parameters with the slug part var separator = originalUrl.includes('?') ? '&' : '?'; // Determine if we need to start with '?' or append with '&' link.href = `${originalUrl}${separator}${utmParameters}`; // Append UTM parameters to the URL }); } setUTMParameters(); // Execute the function when the page loads // Continue reading let cutoffBtn const eventProperties = { page_name: currentPath, calm_user_id: null } const allowedUrls = [] if (allowedUrls.includes(currentPath)) { // Article cutoff const contentWrapperRow = document.querySelector('.blog-item-content .sqs-row'); const contentWrapperCol = contentWrapperRow.querySelector('.sqs-col-12'); const cutoffBtnHtml = `

` if (contentWrapperRow && contentWrapperCol) { contentWrapperCol.classList.add('cutoff') contentWrapperRow.insertAdjacentHTML('beforeend', cutoffBtnHtml); cutoffBtn = contentWrapperRow.querySelector('.cutoff__btn__btn'); cutoffBtn.addEventListener('click', () => { contentWrapperCol.classList.remove('cutoff') cutoffBtn.parentElement.remove() if (typeof amplitude != 'undefined') { amplitude.track('Blog : Continue Reading : Clicked', eventProperties); } }) } } // Paragraphs seen, continue reading button seen const paras = document.querySelectorAll('.blog-item-content p'); const pFirst = paras[0] const pMiddle = paras[Math.round(paras.length / 2)] const pLast = paras[paras.length - 2] const eventStops = { first: false, middle: false, last: false, cutoff: false } function throttle(fn, wait) { var time = Date.now(); return function() { if ((time + wait - Date.now()) < 0) { fn(); time = Date.now(); } } } function isInViewport(element, eventKey) { if (element) { var bounding = element.getBoundingClientRect(); if ( bounding.top >= 0 && bounding.left >= 0 && bounding.right <= (window.innerWidth || document.documentElement.clientWidth) && bounding.bottom <= (window.innerHeight || document.documentElement.clientHeight) && !eventStops[eventKey] ) { eventStops[eventKey] = true return true; } } } const sendEvents = order => { if (order === 'cutoff') { dataLayer.push({'event': 'continue_reading_seen'}) if (typeof amplitude != 'undefined') amplitude.track('Blog : Continue Reading : Seen', eventProperties); } else { dataLayer.push({'event': `${order}_paragraph`}) if (typeof amplitude != 'undefined') amplitude.track(`Blog : Article Scroll : ${capitalizeFirstLetter(order)} Paragraph`, eventProperties); } } const checkParaSendEvent = () => { if (isInViewport(pFirst, 'first')) sendEvents('first'); if (isInViewport(pMiddle, 'middle')) sendEvents('middle'); if (isInViewport(pLast, 'last')) sendEvents('last'); if (isInViewport(cutoffBtn, 'cutoff')) sendEvents('cutoff') } const capitalizeFirstLetter = (string) => { return string.charAt(0).toUpperCase() + string.slice(1); } window.addEventListener('scroll', throttle(checkParaSendEvent, 150)) // Topic Targeted App Audio Track CTAs const ctaToReplace = document.querySelectorAll('img[src*="try-calm-for-free.png"]')[0] const appAudioData = [ { title: 'sleep_quality', html: `

5 tools you need to sleep better tonight

  • Improve your sleep with these science-backed tips
  • From neuroscientist and sleep expert, Dr. Matthew Walker
  • Bite-sized audio lessons for long-term results

Sleep Better

Easy Tips for Better Sleep

Dr. Mathew Walker Neuroscientist and Sleep Expert
  • Don't Try, and Don't Worry! 4 min
  • Your Sleep Type 5 min
  • Sleep and Your Mood 4 min
  • Your Sleep Environment 4 min
  • Sleeping with Your Phone 4 min

Sleep Better

`, urls: ['/blog/vivid-dreams','/blog/how-to-prevent-nightmares','/blog/why-dont-i-remember-my-dreams','/blog/stress-dreams','/blog/waking-up-tired','/blog/how-to-get-more-deep-sleep','/blog/how-to-get-over-jet-lag','/blog/sleep-anxiety','/blog/screen-time-before-bed'] }, { title: 'grounding', html: `

Get grounded in three minutes

  • Calm your body and mind using your breath
  • From former monk and bestselling author, Jay Shetty
  • Short audio practice to help you find balance

Calm Your Mind

Jay Shetty Author, Coach, Former Monk

Calm Your Mind

`, urls: ['/blog/5-4-3-2-1-a-simple-exercise-to-calm-the-mind','/blog/how-to-stop-intrusive-thoughts','/blog/box-breathing','/blog/driving-anxiety','/blog/grounding-techniques','/blog/how-to-stop-overthinking'] }, { title: 'fall_asleep', html: `

Ready to fall asleep with ease tonight?

  • Quiet your mind and body using this guided exercise
  • From mindfulness specialist Chibs Okereke
  • Soothing audio session to unwind into sleep

Get To Sleep

Chibs Okereke Mindfulness Instructor

Get To Sleep

`, urls: ['/blog/racing-thoughts-at-night','/blog/why-do-i-keep-waking-up-at-3am','/blog/breathing-exercises-for-sleep'] }, { title: 'work_stress', html: `

How to beat work stress & burnout like a boss

  • Relieve stress and anxiety quickly during the workday
  • From stress and burnout specialist, Chibs Okereke
  • Short exercises to help you find your calm

Take a Break

Quick Breaks

Chibs Okereke Mindfulness Instructor
  • Managing Overwhelm 5 min
  • 60 Second Reboot 1 min
  • Step Away From the Computer 4 min
  • Let's Unplug 4 min

Take a Break

`, urls: ['/blog/how-to-recover-from-burnout','/blog/beat-burnout','/blog/sunday-scaries'] }, { title: 'sleep_sounds', html: `

The music you need for better sleep

  • Get more restful sleep with delta wave music
  • Produced with Binaural Beats, scientifically shown to enhance sleep
  • 8 hours of music for deep sleep

Get Deep Sleep

Delta Waves for Deep Sleep

Curated by experts at Calm
  • Halting Thoughts (Delta 145 Hz - 147 Hz) 60 min
  • Slow Release (Delta Binaural) 60 min
  • Careful Mind (Delta 83 Hz - 84 Hz) 60 min
  • Calm Body (Delta Binaural) 59 min

Get Deep Sleep

`, urls: ['/blog/what-is-green-noise','/blog/sounds-to-help-you-sleep','/blog/best-music-to-fall-asleep-to'] }, { title: 'anxiety', html: `

The 11 anti-anxiety tools you need in your life

  • Relieve anxiety with these game-changing tools
  • From clinical psychologist & online educator, Dr. Julie Smith
  • Bite-sized audio sessions for long-term relief

Overcome Anxiety

Overcome Stress and Anxiety

Dr. Julie Smith Clinical Psychologist and Educator
  • Calm Your Heart with Deeper Breaths 3 min
  • Challenge Your Negative Thoughts 4 min
  • Guided Breathing to Release Tension 10 min
  • Distance Yourself From Anxious Thoughts 5 min
  • Create Emotional Safety 4 min

Overcome Anxiety

`, urls: ['/blog/panic-attack-vs-anxiety-attack','/blog/how-to-calm-anxiety-attack','/blog/breathing-exercises-for-anxiety','/blog/feeling-anxious-for-no-reason','/blog/flight-anxiety-tips','/blog/affirmations-for-anxiety'] }, { title: 'relationships', html: `

How to cultivate happier and healthier relationships

  • Strengthen your connections (even during conflict)
  • From the Head of Mindfulness at Calm
  • 12 audio sessions to create lasting change

Improve Your Relationships

Relationships with Others Series

Tamara Levitt Head of Mindfulness at Calm
  • Nurturing Relationships 10 min
  • Holding Space 10 min
  • Listening 10 min
  • Boundaries 10 min
  • Empathy 10 min

Improve Your Relationships

`, urls: ['/blog/how-to-overcome-social-anxiety','/blog/questions-to-ask-to-get-to-know-someone','/blog/taking-a-break-in-a-relationship','/blog/anxiety-in-relationships','/blog/long-distance-relationship','/blog/emotional-connection','/blog/first-date-nerves'] } ] appAudioData.forEach(instance => { if (instance.urls.includes(currentPath) && ctaToReplace) { const ctaToReplaceWrapper = ctaToReplace.closest('.sqs-row') if (ctaToReplaceWrapper) { ctaToReplaceWrapper.insertAdjacentHTML('beforebegin', instance.html) ctaToReplaceWrapper.remove() } return } })}); // Audio Sample Functionality Codewindow.onload = function() { // Replace 'audioFileURL' with the direct link to your audio file const audioFileURL = 'https://static1.squarespace.com/static/57b5ef68c534a5cc06edc769/t/65a78d86aa34af6af3428203/1705479566073/SLEP_0184_DreamWithMe_EN_2CH_MK_20230802_HomepageCutdown.mp3/original/SLEP_0184_DreamWithMe_EN_2CH_MK_20230802_HomepageCutdown.mp3'; // Getting the play/pause button by its ID and icons by their IDs const playPauseButton = document.getElementById('harry-styles-sleep-story-play-pause-button'); const playIcon = document.getElementById('harry-styles-sleep-story-play-icon'); const pauseIcon = document.getElementById('harry-styles-sleep-story-pause-icon'); // Check if elements exist if (playPauseButton && playIcon && pauseIcon) { // Initially hide the pause icon pauseIcon.style.display = 'none'; // Creating the audio object const audio = new Audio(audioFileURL); // Event listener for play/pause button playPauseButton.addEventListener('click', function() { if (audio.paused) { audio.play(); playIcon.style.display = 'none'; pauseIcon.style.display = 'block'; } else { audio.pause(); playIcon.style.display = 'block'; pauseIcon.style.display = 'none'; } }); // Dispatch the custom event after the player is ready let e = new Event("amplitudeaudioloaded"); document.dispatchEvent(e); }};

Financial wellness: what it is, benefits, and 10 ways to get there — Calm Blog (2024)

FAQs

Financial wellness: what it is, benefits, and 10 ways to get there — Calm Blog? ›

Financial wellness means knowing you can live and retire on your terms. It's about managing your day-to-day finances, protecting yourself from unexpected expenses, and saving for your short- and long-term goals.

What is financial wellness and why is it important? ›

Financial wellness means knowing you can live and retire on your terms. It's about managing your day-to-day finances, protecting yourself from unexpected expenses, and saving for your short- and long-term goals.

What are the three levels of financial well-being? ›

(2020, p. 1596) found that FWB has three dimensions: meeting expenses and having some money left over, being in control, and feeling financially secure.

What is one way in which you can enhance financial wellness? ›

The most fundamental steps toward financial wellness include establishing a budget, managing cash flow and debt, building your emergency savings, and putting some automation in place with your savings.

Which is a benefit of achieving financial well-being? ›

Helps Achieve Goals

Financial wellness lets you establish and work toward personal and financial goals, like getting a house, starting a business, or saving up for retirement. If you know how to handle your money well, you can reach these goals and enjoy the rewards of your hard work.

Which is the most important measure of one's financial wellness? ›

Monitor Your Credit Score.

Maintaining a good credit score (670 or higher) matters, because having good credit helps you to qualify for new credit card accounts or a car or home loan. Most banks and credit unions, including 1st United, provide credit scores.

What are the 4 pillars of financial health? ›

Many financial experts agree that financial health includes four key components: Spend, Save, Borrow, and Plan. It is crucial that you actively work on improving the health of each one.

What are the 5 stages of wealth? ›

It may involve money, but in the end, it will be defined by everything else. In The 5 Types of Wealth, Sahil Bloom offers a transformative guide, full of practical steps and actionable insights, for redesigning your life around five types of wealth: Time, Social, Mental, Physical, and Financial.

How do you stay financially healthy? ›

How to stay financially healthy
  1. Live within your means. ...
  2. Spend wisely. ...
  3. Free up funds. ...
  4. Build emergency savings. ...
  5. Avoid excessive borrowing and manage your existing debt. ...
  6. Save for the future. ...
  7. Protect what matters. ...
  8. Beware of scams and fraud.

How can I become financially well? ›

  1. Choose Carefully. Every decision has a cost, so be sure to consider your options. ...
  2. Invest In Yourself. Education and training is your investment in you. ...
  3. Plan Your Spending. Know the difference between net and gross. ...
  4. Save, Save More, and. ...
  5. Put Yourself on a Budget. ...
  6. Learn to Invest. ...
  7. Credit Can Be Your Friend. ...
  8. Nothing is Ever Free.

How do you balance financially? ›

How to manage your money better
  1. Make a budget. According to the Capital One Mind Over Money study, people dealing with financial stress struggle more with budgeting. ...
  2. Track your spending. ...
  3. Save for retirement. ...
  4. Save for emergencies. ...
  5. Plan to pay off debt. ...
  6. Establish good credit habits. ...
  7. Monitor your credit.

What is another word for financial wellness? ›

Financial wellbeing is known by many names – like financial literacy, wellness, confidence or resilience – but put simply, it's about having a good relationship with your money.

What is the value of financial wellness? ›

At a minimum, a good financial wellness program helps employees increase their financial knowledge and ability to manage personal and family finances. The most important goal is to help employees reduce the stress associated with financial uncertainty.

What is a financial wellness program? ›

What is a financial wellness program. Employee financial wellness programs are programs that help employees (better) manage their finances and reduce financial worries. As such, they contribute to a better overall financial wellbeing for employees. A financial wellness program is aimed at educating employees.

What is meant by financial wellbeing? ›

What is financial wellbeing? Financial wellbeing is about having the financial freedom to make choices that allow you to enjoy life. There are some things that affect our finances that we can't control, like rising cost of living or unexpected expenses.

Why is it important to understand financial health? ›

Individuals who are Financially Healthy are able to manage their day-to-day expenses, absorb financial shocks, and progress toward meeting their long-term financial goals.

Why is financial fitness important? ›

Ultimately, achieving financial fitness means you make informed financial choices that increase your wellbeing and support your life goals.

What is another term for financial wellbeing? ›

Financial wellbeing is known by many names – like financial literacy, wellness, confidence or resilience – but put simply, it's about having a good relationship with your money.

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